1. Capitalism, Communism, and Socialism Mark Manbeck

2. Essential Question
What are the differences between Capitalism, Communism, & Socialism?

3. CAPITALISM Adam Smith: “Father of Capitalism” (English)
Wealth of Nations
Individual is important part of this economic system.
Production based on demand by consumers.
Based on private ownership and investment of money in business for profit.
“You have to spend money to make money”
Example: Japan
Less regulation

4. You have two cows, you sell one and buy a bull.

5. PROS: - Wealth Motivates people to work harder
PROS: - Wealth Motivates people to work harder. - Individual worker is important. - Profiting is most important.

6. CONS: Inequality amongst the classes ( Extreme wealth and poverty)
Some employers abuse employees to make extra money (Ignoring safety hazards, hours without pay)
Unregulated economy
Crashes

7. Survival of the fittest -Darwin
Role of Government:
- Laissez-faire
Property:
You work harder for what’s yours
Private Property

8. Communism
Karl Marx:
Government is the important part of this political and economic system
All means of production are owned by “the people”, private property does not exist, all goods and services are shared equally.
Classless Society
Example: Russia, North Korea, China

9. Karl Marx (German)
Along with Fredrick Engels wrote Communist Manifesto and Das Capital
Only way workers can get rights is through revolution.
Labor Unions
Vladimir Lenin Dictatorship
Class warfare
Bourgeoisie: Owns means of production. (Haves)
Proletariat: Work for Bourgeoisie(Have nots)
“From each according to their ability, to each according to their need.” Karl Marx

10. You take care of the cows and the government takes all of the milk

11. Pros: The betterment of society is more important than the individual.
All people are equal (No rich, no poor)
Wealth distributed equally

12. Cons: -No reason to work harder
Tends to be corrupted easily (Communist Party Dictatorship)
Individual doesn’t matter
No one can get rich
Big Brother

13. Socialism
Factors of production are owned by the public and operate for the welfare of all.
Community is important part.
Inequality reduced through more equal distribution of resources.
Gov. owns railroads, power plants, etc.
Provides health insurance, day care, etc.
Private ownership of houses, most businesses
Government regulates economy
Example: Sweden

14. You have two cows and give one to your neighbor

15. Differences between Socialism and Communism
Based on elimination of all private property ownership to create equality.
Attempts to reduce inequality among social classes by creating more equal distribution of resources.

16. Handout
With a partner, identify whether the quote is referring to Capitalism, Communism, and Socialism. After you have identified which one it is, explain why you chose that option. Highlight or underline passages from the text to support your reasoning.