1. CAPITALISM VS. SOCIALISM ECONOMIC THEORIES

2. CAPITALISM RECAP Who controls the means of production? What is Laissez-Faire? What did Malthus and Ricardo say was a problem for the economy? (what factor) List 4 pros and 4 cons on a “T” graph (separate paper)

3. TO DEAL WITH CAPITALIST FLAWS Humanitarians People that try to encourage government help or change to protect the rights of workers Unions Strike All the workers don’t go to work until they gain benefits Collective Bargaining Representatives of the union negotiate with factory owners for more benefits

4. SOCIALISM Socialism : When the means of production are controlled by the government to “benefit” all people Socialists wanted to get rid of profit motivation and competition and try to produce goods to help humanity All people have a right to share equally in the profits of a company

5. BRANCHES OF SOCIALISM Utopian Socialists : Small cities would be established after the model of Thomas More’s Utopia. Think Native American civilizations People like Robert Owen felt that if people lived in a small “good” environment they would quit acting selfishly Encouraged unions Overall only effective in small communities when the city grew they began to compete and fail

6. COMMUNISM Karl Marx thought Utopian Socialism was not practical Teamed up with Friedrich Engles to produce the Communist Manifesto which explained a new theory known as Communism Communism : there needed to be a violent overthrow of the wealthy by the Proletariat, “working people”, and establish a government that controls all and distributes to people in accordance to their needs “from each according to his abilities to each according to their needs”

7. COMMUNISM CONT. In most communist communities the government tried to control the means of production but sometimes their farms or factories failed People were told to do what they were good at to help the community Motivation to work hard did not come from a paycheck but from a desire to help your community On the “t” graph with your capitalist pros and cons list 4 pros and 4 cons that you could see that would develop in this type of community

8. DEMOCRATIC SOCIALISM Democratic Socialism : People would vote for a socialist form of government. Owners would be paid for their property and business by the government which would then control the means of production People have some control of the economy because they elect leaders that are in charge of communist cities