2. Writing Assignment minimum 1 page
How did the Industrial Revolution lead to political, economic, and social changes in Europe?

3. Economic Systems (p. 27) Capitalism, Socialism & Communism
Liberty or Equality?

4. Capitalism Adam Smith – 1776 – “The Wealth of Nations”
Free Enterprise: everyone is free to pursue any economic activity
Laissez-Faire – government does not interfere in the economy: an “invisible hand” will run things
Freedom to succeed and freedom to fail
Private ownership of the means of production (factories)

5. Capitalism Goods are not provided by gov.
Profit is the motivator, competition is the regulator (not government)
Do not tax the rich more than the poor – no redistribution of income
Good of the individual is above the good of society

6. Socialism Founder: Robert Owen Mix of pure capitalism & pure communism
Some private ownership & some public (gov). ownership of property
Some government intervention in the economy
Redistribution of income – high taxes on the rich to provide lots of government services
Mix of Equality and Liberty

7. Communism
Founded by Karl Marx & Friedrich Engels – “The Communist Manifesto”
In response to the working conditions in the factories
Beliefs:
1. Private property allows for the exploitation of the poor.
2. History is a class struggle--bourgeoisie (middle class) vs. proletariat (working class)
3. Proletariat should overthrow the bourgeoisie & take control of the gov.

8. Communism
Workers run the factories –> everyone earns an equal amount
Lots of government intervention in the economy to promote equality
The good of society is above the individual
Equality is a goal

9. Capitalism/Socialism/Communism 1st period
Complete the yellow assignment using your prior knowledge & the white reading
Turn in when done
Afterwards, you will complete any missing work or tests/quizzes (or corrections)

10. Capitalism/Socialism/Communism
Complete the yellow assignment using your prior knowledge & the white reading