1. Day 8 Self Reliance/Survival of the Fittest

2. Revisit the Political Spectrum: -Which side of the spectrum usually favors change in a new direction? -Which side believes the government should play a limited role in the lives of citizens, especially when dealing with economic matters.

3. Market Economy Also known as pure capitalism or free market All basic economic questions are determined by the marketplace All means of production are privately owned Profit is allowed Laissez-faire Government democratically elected “invisible hand” Characterized by competition –Example- USA at turn of the century

4. Command Economy All basic economic questions are determined by the government –dictatorship No competition Government grants monopolies 2 Types of Command Economies Fascism –Allows private ownership and profit Example- Nazi Germany, Imperial Japan Communism –Government owns all means of production and no profit allowed Example- USSR, China (until recently) Socialism is a command economy in which government is democratically elected

5. Mixed Economy Has elements of both market and command What most nations follow Really no pure market of command economies

6. Economic Spectrum CommandMixed Market MixedCommand Communism/ Socialism Pure CapitalismFascism Dictatorship Democracy Dictatorship On the sheet provided, write which economic system and which type of government Fall under each system. Note Left wing and Right wing extremes.

8. Today you will be able to: Define Laissez-faire Identify William Graham Sumner and his philosophy Social Darwinism Identify Andrew Carnegie and his philosophy of the Gospel of Wealth Develop your political view on the role of government in economics

9. Laissez-Faire Economic Policy Derived from Enlightenment “let it (nature) be” Government should stay out of economy Where would this ideology fall on the economic spectrum?

10. Read page 1 of handout

11. William Graham Sumner/Social Darwinism Definition: belief that people in society compete for survival and that superior individuals, groups, etc. become powerful and rich Natural selection –fittest succeed –unfit sink into poverty and become extinct Sumner- –American sociologist who popularized S.D. –Attempts to justify why the rich are so rich…they’re better

12. Carnegie Presentation Read Gospel of Wealth

13. Andrew Carnegie/Gospel of Wealth ‘Natural aristocracy’ should control economy –Beneficial to all because weak links are eliminated, best rise to the top Politicians, not subject to natural selection, are not as trustworthy as ‘natural aristocracy’ Government should follow a laissez-faire economic policy Poverty is unfortunate but inevitable Wealthy have obligation to aid the less fortunate http://historymatters.gmu.edu/d/5766/

14. Judge Carnegie So Far: Do you view him positively or negatively?