1. Housekeeping Your Homework is due now.
Make sure you come see me to look over your test.
Vocab books, Vocab books, Vocab books!!!
Remember, your quiz is tomorrow!

2. Words Haudenosaunee Class System Distribution of wealth
Laissez-faire Capitalism

3. “Western Democratic Liberalism”
Social 30
“Western Democratic Liberalism”

4. Western Origins of Liberalism
By the 1800’s, the ideas of Liberalism began to change how Europe was being run.
The Kings, Church, and nobility began to loose control.
Countries such as France and Spain moved away from Absolute Monarchy.

5. Absolute Monarchy No people have rights or freedoms.
One person controls everything.
Power was often abused.

6. Get rid of it. By the 1800’s people began to revolt against this.
In France it was led by our old friend JJ and led to the French Revolution.
JJ proposed that people should be free and have civil liberties.
People who supported this began to be called Liberals.
The term has stuck!

7. Ideas of the Enlightenment…..
Locke's idea of contract surfaced:
- man originally in natural state is free, equal, has rights to property, own body, life and liberty.
but man wanted comfortable, safe, peaceful existence and security of life, liberty and property
to do this he created government  government elected by people, under contract to act as long as it carries out public will

8. Rousseau's theory was similar:
 PPl are naturally good and free men progressed to a point where they were ready to enter a contract
 Purpose of contract to preserve freedom and protect people and property
 Each individual placed himself under the authority of the general will
 No one had the right to go against the will of the community

9. The Ideas of Liberalism Formed
Individuals rights and freedoms should be protected.
Rule of Law
People, left alone, will make good decisions.
Government intervention should be limited in Business.

10. Storming of the Bastille
The Revolution
During the French Rev. people shifted their loyalties from the monarch to the nations itself.
Shaped by political, social, economic and even geographic factors.
Storming of the Bastille
Paris prison were many political prisoners were thought to be.
July 14, 1789 ppl of Parisian attack Bas. And take control.
Considered the beg. Of Rev.

11. “We are a nation. We can Govern ourselves- in our own interests.”

12. Liberalism and the Economy
Let’s start here today! We have a few notes…
Liberalism and the Economy

13. Housekeeping
If you missed, or messed, your quiz on Friday, you must come to tutorial, but will take a 20% cut in the grade.
We have a lot of notes today, sorry. But, we are a little behind.
So, we need to buckle down.

14. Quick Review What was the Industrial Revolution?
What is an Absolute Monarchy?
What are some basic ideas of Liberalism?
Why was the French Revolution so important?

15. Words Monopoly Supply and Demand Limited Government
Invisible Hand (p 104)

16. Mercantilism
A Eurocentric economic policy whereby European monarchs increased their wealth through international trade.
The Economies like this funneled money to the elite and the rich.
Then the Industrial revolution began to change things.

17. Class system in Britain
Upper Class:
Wealthy Landowners
Middle Class:
Business owners, Professionals, Bankers.
Working Class:
Farmers and any manual labor.

18. Industrialization
Industrialization is a process of economic and social change.
which shifts the centers of economic activity onto the focus of work, wages and incomes.
economic activities were transformed from being based on agriculture to manufacturing (both primary and secondary).

19. Continued
Economic and social activities shifted from rural and cottage industries to an urban core.
a larger proportion of the population expected to be wage earners for all of their working lives.
Therefore, industrialization brought major changes in the way society was organized and in the relations among different groups in society.

20. Entrepreneur
·  A business person who takes risks in order to make profits.
Factory System
when employees began to go to a workplace (used owner’s tools, machines, got wages and worked set hours).

21. Adam Smith “the wealth of a nation”
In 1776 Adam Smith wrote a book that argued against the ideas of Mercantilism.
He felt that the system did not distribute wealth among society properly.
King, or leaders, would pick favorites and develop monopolies.

22. Continued Smith developed the idea of the invisible hand.
We need a limited government.
People should be awarded for their hard work.
This was known as Meritocracy.

23. Capitalism
An Economic system based on free markets, private ownership of business and industry, and the profit motive.

24. Capitalism In “true” capitalism, a private business generates profits.
This profits are funneled back into the business to allow it to grow.
Subsequently, the business offers jobs and services to the public and society can function.
Business works without government intervention.

25. How Mercantile became Capitalist?
Many large Merchants built strong businesses and a lot of wealth.
Some began lending money and charging interest.
They began to develop other companies and services that were in demand by the population.
Thus began capitalism and the idea of supply and demand.

26. Cartoon What is happening in this cartoon?
From this can someone tell me how supply and demand works?

28. Market - is a place where goods are bought and sold
Producers decide:
what to produce
what goods will cost (based on what consumers want)
law of supply and demand controls the market (the invisible hand)
supply - as the price of produce increased, producers will want to make more, in order to make a larger profit
demand - as prices increase, consumers will want to buy less, or will want (or demand) more if price decreases
supply and demand determines the $ of a good or service
Equilibrium - is where supply and demand meet or intersect

29. Let’s look at this to explain it.

30. Compared Mercantilism Capitalism Government Regulations. Monopolies
Wealth for a few.
Little government regulation of business.
Competition.
Wealth distributed for many.

31. Problems when governments get involved.
Pure Capitalist (Economic Liberals) feel that government intervention disrupts the economy.
The main capitalist country in the world in The U.S.
Under these ideas, is the US currently a capitalist country.

32. Some review Explain the concept of the Invisible hand.
Explain Supply and Demand.
What is Laissez-faire Capitalism?
Why did Adam Smith want to move away from Mercantilism?
What is Mercantilism?