1. Essential Question: How did the political theories of socialism and communism reflect the changes brought about by the period of industrialization?

2.  Definition: An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. What is the idea?  Survival of the fittest; if everyone is looking out for their own best interests, then everyone’s individual needs are met.  Competition between sellers keeps prices fair.

3.  Laissez-faire  Government should not interfere with economic matters, therefore, play no part in the wealth of the individual.  Believed the government should only provide army, police and infrastructure and not be seen (“invisible hand”)

5.  Large income gap: Very few extremely wealthy people and a large working class.  Inequalities in earnings: Owner making millions while they pay their employees minimum wage.  Society based off greed: Success and worth become defined by wealth.  Mistreatment of working class: Low pay, poor working conditions, long hours and taking advantage of employees.  Wealthy people become increasingly powerful, allowing them to make the rules. This can lead to no concern with issues such as the environment, human rights or social justice.

7.  Definition: A political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. What is the idea?  Equal wealth and opportunity.  Replace competition with cooperation.  Distribution of output is based on the principle of “to each according to his contribution”  Wealth goes to the person producing, instead of the owner of the business, therefore, the ability to gain wealth is available to all through hard work.  Through creating an equal distribution of wealth based on willingness to work, everyone in society will have what they need to live a good life.

8.  Social reformer  Founder of utopian socialism and cooperative movement  “There is but one mode by which man can possess all the happiness which his nature is capable of enjoying — that is by the union and co-operation of all for the benefit of each.”

9.  Too much government control in businesses and other parts of life.  Promotes laziness in people: “Free-Loader Effect.”  Decrease in productivity; less risk taking and innovation if there is little reward for taking chances.  TAXES! People have to give a part (sometimes a large part) of their income to the government.  People come to rely on government help.  Less individuality.

10.  Definition: a social system characterized by the common ownership of the means of production and where the government set subsistence requirements and by the organization of labor for the common advantage of all members. What is the idea?  Government has total control over almost all aspects of life: production, education, communication, money, food and property.  People only work and produce something that society needs.  Instead of getting paid, they are given basically what they need.  Government distributes everything so everyone can get a equal amounts in an efficient way.  Everyone in society is exactly equal: same amount of wealth, quality of life, transportation, education, etc.

11.  Father of Communism  Believed that Communism is the “ultimate goal” - achieved through socialism.  Developed theory based on a “history of class struggles”.  According to Karl Marx, the only way to achieve a state of Communism is a violent overthrow of the current government from working class or proletariats.

12.  No monetary reward for working except for personal growth and the good of your country.  Government decides what you need to subsist on for all members of society.  Complete loss of individuality in society.  No creativity.  Everything you do is controlled by the government.

13.  Guess which system is described for each. You have two cows…  You keep one and sell the other to buy a bull. Your herd multiplies and the economy grows.  The government takes both of the cows and provides you with milk.  You give one cow to your neighbor who does not have a cow.

14. ISMS Socialism: You have two cows. Give one cow to your neighbor. Communism: You have two cows. Give both cows to the government, and they may give you some of the milk. Fascism: You have two cows. You give all of the milk to the government, and the government sells it. Nazism: You have two cows. The government shoots you and takes both cows. Anarchism: You have two cows. Keep both of the cows, shoot the government agent and steal another cow. Capitalism: You have two cows. Sell one cow and buy a bull.