1. TWO MAIN SYSTEMS OF GOVERNMENT

2.  Adam Smith Adam Smith  Wrote the Wealth of Nations  “Liberty guarantees economic progress, therefore government shouldn’t interfere”

3.  Individual worker is most important  Workers work harder when they make profit  Companies do better when they make profit

4.  Laissez-faire  government shouldn’t be involved  Free market, unregulated by government  “Let people do as they please”

5.  Wealth motivates people to work  If you don’t work you will be poor  Sellers make $ by producing things people want to buy; buyers spend $ on things they want most

6.  Private property  You work harder for what’s yours

7.  No reason to work harder  Individual doesn’t matter  Can’t get rich

8.  Communism Communism

9.  Karl Marx (& Friedrich Engels)  Wrote Communist Manifesto & Das Capital  Said human societies have always been divided into classes  bourgeoisie (owners, “haves”) vs. proletariat (workers, “have-nots”

10.  Society as a whole is most important  All people should be equal  Marx felt capitalism would destroy itself  factories take over small businesses (control everything), workers would revolt, & society would eventually become a classless society  Final phase is COMMUNISM

11.  Government should be in total control  Government would make sure wealth is distributed evenly

12.  Wealth should be distributed evenly  No rich & no poor

13.  No private property  Everything is shared by the people

14.  Some people are poor  People are too greedy  Owners mistreat workers to make $