1. Capitalism & Socialism
Adam Smith
Karl Marx

2. Adam Smith ( )
Free markets – economies unregulated by government
Laissez Faire – the economic policy of letting owners of business set working conditions without interference from the government

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. 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

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

6. “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.

7. Communism
A form of complete socialism in which the means of production are owned by the people, ex. Land, mines, factories, RR’s and businesses.
Private property would cease to exist.
All goods and services would be shared equally.
Without it, Marx believed that the govt. would wither away as a classless society developed.

8. Capitalism Socialism Resources are owned by the government
Resources are owned by private individuals
The goal of business is establishing equality
The goal of business is making a profit
Socialists believe that capitalist employers take advantage of workers. The community or state must act to protect workers
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

9. 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

10. On the back of the organizer…
Which system of economic ideas seems most widespread today?
Support your opinion!