1. Capitalism Socialism Communism

2. Capitalism
“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
Adam Smith, The Wealth of Nations

3. Capitalism
an economic system based on private ownership and investment of money to make a profit.

4. Capitalism Positive Effects: Competition leads to progress
New and better products, innovation
best goods are produced at the lowest prices
Law of supply and demand regulate prices -- “invisible hand”

5. Competition
As businesses compete, one against the other, for the consumer’s money, products improve

6. Laissez-faire Capitalism
“let do” or “let alone”
No government interference
No government regulation (minimum wage laws, safe working conditions, etc…)

8. Capitalism Negative Effects:
As industry grew in the 1700s and 1800s, the gap between the “haves”, and the “haves-not” grew.
Unequal distribution of wealth led to social unrest

10. Industrial Revolution
Living and working conditions continued to get worse for the working class…
Some people thought that ending workers’ misery required eliminating capitalism completely!
Some people started calling for reform…

11. Socialism
Socialism: The belief that the means of production, capital, land, raw materials, and factories, should be owned or controlled by the society either directly or through the government.
This way, wealth could be distributed equally!

12. Socialism
An economic system in which the factors of production are owned by the public and operate for the welfare of all

13. Socialism Government actively regulates the economy
Government controls major industries and resources.

14. In many ways, Socialism was a reaction to the Industrial Revolution and Capitalism
Communism was a radical reaction to Socialism

15. Engels and Marx Radical Socialists wrote The Communist Manifesto, 1848
wanted to appeal to the workers of the world

17. “From each according to his ability, to each according to his need."
Communism
an economic system in which all means of production are owned by the people, private property does not exist, and all goods and services are shared equally.
“From each according to his ability, to each according to his need."

18. Karl Marx German journalist, philosopher, economist
Dismissed the ideas of early socialists as impractical
Wanted to provide a scientific basis for socialism
Father of communism

19. Communism
Marx and Engels called for workers of the world to unite and overthrow the rule of the rich.
Wealth would be redistributed
Classes and private property would cease to exist

20. Communism All people are treated equally
the government owns and controls everything
Property (no private property or inheritance rights)
Central bank
Means of production (factories and farms)
Education (no private schools)
Communication
Transportation
Labor
Income tax (the more you made, the more you paid)

21. “Let the ruling classes tremble at the Communist revolution
“Let the ruling classes tremble at the Communist revolution. The proletarians (working class) have nothing to lose but their chains. They have a world to win. Working men of all countries unite!”
Karl Marx

22. Marx and Engels stages of history:
Primal
No private property
No freedom or time for anything except basic needs
Feudal
Private property = wealth & power
Aristocracy oppress the serfs
No freedom or time for self-fulfillment

23. Marx and Engels stages of history:
Capitalism
Means of production = wealth & power
Individual freedom is withheld from the working class who remain oppressed by wage labor

24. Marx and Engels 4 stages of government:
Socialism/Communism
No Private property
the state controls all property to distribute it equally
Freedom and self-fulfillment