Bellringer: 1/13

• Pick up the paper by the door.• Review for your vocab quiz for about 5

minutes. We will then play Kahoot as a final review for the quiz.

After you finish your quiz…

• KEEP THE QUIZ AT YOUR DESK! DO NOT TURN IT INTO THE DRAWER.

• When you are done, turn the quiz over on your desk.

• Make the following ToC Update:– Page 92: Vocab Quiz: Industrial Rev.– Page 93: Notes – Capitalism, Communism, and

Socialism

Homework:

• Begin reviewing for upcoming quizzes/tests:– 1/20 (Wednesday): Industrial Revolution Quiz• This will be a review day (Squares Game, etc.) after the

quiz is done.• Only 20-25 questions.

– 1/22 (Friday): Quarter 2 Test • 80 questions, all multiple choice

Capitalism, Communism, and Socialism: What do you

think of?

So what is an economic system?

• An economic system is a system of production and exchange of goods and services as well as allocation of resources in a society.

• Three major economic systems during the Industrial Revolution: – 1. Capitalism– 2. Communism– 3. Socialism

Capitalism, Communism, and Socialism

What is capitalism? • Economic system.• Believes in individual ownership and

competition.• Theory: When everyone is selfish and

concerned with personal profit, everyone will benefit.

• Adam Smith = “the” capitalist– Wrote Wealth of Nations: felt capitalism good for society

= THE BEST ECONOMIC SYSTEM!

What’s good about capitalism?

• Freedom, choice. • You can work wherever, buy whatever, and

pretty much do whatever.• If you’re successful, you can be very

successful (Think Bill Gates)• “Survival of the fittest” only the strong

survive in capitalism!

What’s bad about capitalism?

• No “safety net.” – If you fail, you FAIL! The government is not going

to save you. • If you’re unsuccessful, you can be very

unsuccessful. Think about the poor. • Big gap between rich and poor.

What is communism?• Economic system.• Believes in collective (group) ownership and a planned

economy (government makes decisions). • Theory: Everyone pools their resources and labor to

evenly distribute everything. – Everyone gets an EQUAL amount of everything, regardless of

how hard you work or don’t work!• Karl Marx = “the” communist

– Wrote The Communist Manifesto with Engels – about class struggle, problems of capitalism

– Wrote Das Kapital: 1867, critique of capitalism– Both written with Engels

A Closer Look at the Communist Manifesto:

• MAIN FOCUS: Class struggle (between the haves and have-nots)

• Class struggle leads to the dictatorship of the proletariat (middle class)

• Dictatorship of the proletariat = requires the transition to the abolition (ending) of all classes, the creation of a classless society

• Supported:– Abolition of property, heavy taxes, central banking– State-controlled communication, transportation, and education

of children

What’s good about communism?

• Security, basic needs met.• Everyone would have a job, house, health

care, etc. – NO SURVIVAL OF THE FITTEST PROBLEM HERE

• Who would support this idea?

What’s bad about communism?

• Lack of choice• No reward for being a better worker, slackers

get no punishment (lack of incentives and consequences).

• Everyone expected to be the same (lack of focus on individual growth).

MarxismMarx and Engels

studied the history of the world’s economies

Basic Communism

Feudalism

Capitalism

Communism!!!Socialism

They believed they discovered an inevitable pattern

Communist Manifesto 1848Focus: Class Struggle (bourgeois-middle class & proletariat- lower class)

Problems within capitalism

• Abolition of property • Heavy, progressive taxes• Abolition of inheritance• Confiscation of property of all emigrants and rebels• Central banking• State-controlled communication and transportation• State-controlled education of the children

Communism/Socialism: What’s the difference?

• Socialism is the stage between Capitalism and Communism.

• Nationalizes the means of production (i.e. corporations, banks, raw materials, etc.) = gives control of them to the government

• BUT: NOT all are equal!– People are paid wages based on several factors

(social need, difficulty of job, amount of schooling required, etc.), so not everyone will make the same wage.

How’s this related to the Industrial Revolution?

• Adam Smith’s capitalism dominated the IR- Led to bad working conditions.

• Karl Marx wrote about communism as solution to capitalism’s problems. – Marx said the workers would get fed up and

overthrow their governments and start communism.

Exit Ticket:

• Which economic system is better for society…communism, socialism, or capitalism? Give 2-3 reasons why you think this.