1. Capitalism & Socialism
Adam Smith
Karl Marx

2. Adam Smith ( )
Free markets – individuals make economic decisions, not governments.
Laissez Faire – the idea that markets (the relationship between buyers and sellers) should be left alone.

3. “The Wealth of Nations”
The Law of Self-Interest: People work for their own good, not for the good of the group.
The Law of Competition: Competition forces people to make better products.
The Law of Supply & Demand: In a market economy, enough goods will be supplied at the lowest possible price to meet demand.

4. Karl Marx ( )
Governments must control markets to improve people’s lives.
Government should regulate the economy to end poverty and promote equality.

5. “The Communist Manifesto”
Introduced a radical type of socialism called Marxism.
Society is divided into warring classes:
The bourgeoisie (owners)
The proletariat (workers)
The capitalist system will destroy itself:
Factories will drive small artisans out of business.
The proletariat will seize control of industry and produce what society needs (equality for all).
Cooperative living and education will lead to a society free of class.
Private property will cease to exist.

6. Capitalism Socialism Resources are owned by private individuals
The goal of business is making a profit
The government should not help workers, this would lead to less profit
The government should not regulate business

7. Capitalism Socialism Resources are owned by private individuals
Resources are owned by the government
The goal of business is making a profit
The goal of business is establishing equality
The government should not help workers, this would lead to less profit
The government should help workers and promote equality
The government should not regulate business
The government should regulate business

8. Capitalism Socialism Resources are owned by private individuals
Resources are owned by the government
Both belief systems arose as a result of industrialization
The goal of business is making a profit
The goal of business is establishing equality
Both influenced the political and economic beliefs of society
The government should not help workers, this would lead to less profit
The government should help workers and promote equality
The government should not regulate business
The government should regulate business