1. The downside to capitalism
The honeymoon doesn’t last

2. http://desesperoeeuforia. files. wordpress

4. Capitalism – cons Disadvantages
Consumers can be manipulated by advertising
Prices and incomes might not reflect what is best for society
Business cycle experiences many ups and downs (= considerable unemployment)
Monopolies and oligopolies can emerge that charge unreasonable prices
Extreme income inequality results
Industry cost-cutting can lead to environmental problems
Insecurity is present on a large scale
Difficult to break out of cycle of poverty

5. Examples of the problems created by capitalism
Lack of concern for the workers, seen in industrialization nations from Great Britain’s factories, US slavery, sweatshops in Asia
The Great Depression, the 1990s dotcom bubble, the global recession, Enron…
Competition does not mean a level playing field for all companies (eg WalMart, Standard Oil)
Global climate change brought about by the increasing consumerism promoted by capitalism

7. The rejection of liberalism

8. Fear of Freedom
Classical liberal ideas had transformed society, but not everyone benefitted equally
Injustice or natural law (depends on your perspective)
Rapid transformation of economic systems = focus on efficiency and profit over humanity
Protest – Luddites
Economic liberal attitudes changed much more quickly than political or humanitarian attitudes (rebound)

9. Conditions for the Working Class (During the early part of the Industrial Revolution)
child labor (women and children paid less)
12-16 hour days
limited or no breaks for meals
corporal punishment
fear of losing job
living miles away from the factory
poor living conditions
short life span

11. "Sarah Golding was poorly and so she stopped her machine
"Sarah Golding was poorly and so she stopped her machine. James Birch, the overlooker, knocked her to the floor. She got up as well as she could. He knocked her down again. Then she was carried to her house she was found dead in her bed. There was another girl called Mary......she knocked her food can to the floor. The master, Mr. Newton, kicked her and caused her to wear away till she died. There was another, Caroline Thompson, who was beaten till she went out of her mind. The overlookers used to cut off the hair of any girl caught talking to a lad. This head shaving was a dreadful punishment. We were more afraid of it than any other punishment for girls are proud of their hair." An interview in 1849 with an unknown woman who worked in a cotton factory as a child. 

13. Conservative reaction to the negative aspects of classical liberalism
“reactionary” – origin: French revolution (opposition to revolution, conserve the monarchy)
Edmund Burke: Society has a natural hierarchy which does not allow for equal political rights (less educated/experienced = less able to participate)
Therefore, economic inequality can be justified
Leaders should be humanitarian, but stability is the primary concern

14. Socialism
Focus: equality through government intervention (to varying degrees)
Cooperation vs competition
Utopian Socialists - modifying classical liberalism
Robert Owen – New Lanark
Louis Blanc – socialist communities
John Stuart Mill – liberal philosophy – including the need for labor legislation to protect workers against the abuses of the laissez-faire capitalist system.
Some of the first government interventions during the Industrial Revolution included labor regulations
The creation of unions (often very difficult at first) gave the workers a stronger voice

15. The need for unions Triangle Shirtwaist Fire
London Match-worker’s Strike

16. Aspects of Socialism in Canada
Public ownership of property
ideals of equality and economic strength is promoted (usually in areas of national importance, areas of high risk or to protect employment)
Joint ownership is often favored
Government controls and subsidies
Redistribution of wealth
social programs and progressive taxation, direct and indirect taxation (GST, airline fuel taxes)

17. Sweden – democratic socialism
Very similar to Canada’s economy, however it is more socialized
More unionized – attitude of cooperation instead of competition
“Cradle to Grave” – services span lifetime (prenatal care to university tuition to senior’s pensions)
Indicative Planning – 5 year plans
Differ from Communist five year plans as they are created by labor, management and government to indicate where the economy should go

18. Three Economic Questions – according to socialists
What goods/services to produce: consumer demand and government determination of goods citizens need
How to produce the goods/services: competition with some government help if necessary
Who should the goods/services be distributed to: government ensures economic equality by providing basic goods and services for everyone, goods/services also produced for those who can afford them

19. Stop and reflect – journal entry
What is your opinion of capitalism?
In your answer, include a reflection on:
What are the basic tenants of classical economic liberalism (capitalism)?
What are the benefits of capitalism?
What are potential problems created by capitalism?
Is the rejection of capitalism and acceptance of socialism a better way?