1. Capitalism & Socialism

2. Political Reforms The Factory Act of 1833:
Illegal to hire children under 9 years old
9 to 12 could not work more than 8 hours a day
13 to 17 could not work more than 12 hours

3. Political Reforms The Mines Act of 1842:
Prevented women and children from working underground
The Ten Hours Act of 1847:
Limited the work day to ten hours for women and children who worked in factories

4. New ways of thinking Adam Smith: Father of Capitalism
Wrote Wealth of Nations
Karl Marx: Father of Communism
Friedrich Engels helped him write his book the Communist Manifesto

5. New ways of thinking Adam Smith: Father of Capitalism
Wrote Wealth of Nations
Karl Marx: Father of Communism
Friedrich Engels helped him write his book the Communist Manifesto

6. Adam Smith

7. Karl Marx and Friedrich Engels
Karl Marx Friedrich Engels

8. Belief of Ownership Adam Smith Karl Marx
Individuals and business own property and the means of production
The community or the state should own property and the means of production

9. Belief of Progress Adam Smith Karl Marx
Progress results when individuals follow their own self-interest
Progress results when a community of producers cooperate for the food of all

10. Role of Government Adam Smith Karl Marx
Government should not interfere in the economy because competition creates efficiency in business
Laissez faire
An unequal distribution of wealth and material goods is unfair. A better system is to distribute goods according to each person’s need

11. Basic Beleifs Adam Smith Karl Marx
Businesses follow their own self-interest by competing for the consumer’s money. Each business tries to produce goods or services that are better less expensive than those of competitors
Consumers compete to buy the best goods at the lowest prices. This competition shapes the market by affecting what business are able to sell
Socialists believe that capitalist employers take advantage of workers. The community or state must act to protect workers
Capitalism creates unequal distribution of wealth and material goods. A better system is to distribute goods according to each person’s need.