1 / 9

Capitalism

Capitalism. Positives: Adam Smith- laissez faire (let people do as they please) Wealth of Nations: economy will prosper without government interference Privately owned business. Market System:

ecarrico
Download Presentation

Capitalism

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Capitalism Positives: • Adam Smith- laissez faire (let people do as they please) Wealth of Nations: economy will prosper without government interference • Privately owned business. • Market System: Many workers & abundant resources = cheap labor & resources Few workers & scarce resources = expensive labor & resources • Entrepreneurs are rewarded for their risks. • Goods are improved, competition breeds better products at lower costs. • Anyone can become rich!

  2. Capitalism Negatives: Social Darwinism- survival of the fittest used for society. Wealth of one built on the backs of many. Gap between the rich and poor grows wider.

  3. Response to Capitalism Socialism- the means of production (land, capital, raw materials and factories) should be owned and controlled by society. Communism- Karl Marx: Believed there is a constant struggle between the “haves” and the “have-nots.” “Workingmen of all countries, unite.” Workers (proletariat) were the productive class. He wanted the people to own everything, no private property, no classes. The idea is that “from each according to his ability, to each according to his need.” Wrote book, Communist Manifesto

  4. LABOR UNIONS AND REFORM LAWS Unions: Voluntary labor associations Collective Bargaining: negotiations between workers and employers to better working conditions and increase pay Strike: refusing to work until changes are made (originally illegal) Reform Laws: Political leaders looked into abuses of IR Child Labor Laws Working Conditions in Factories and Mines Lead to: Abolition of Slavery Fight for Women’s Rights Public Education Prison Reform D E M O C R A C Y continued to grow

  5. Four Factors of Production 1. Land- Natural resources. 2. Capital- Money to start the business. 3. Labor- Workers (Displaced farmers, increased population) Entrepreneurs- Risk takers, people with the idea, capital and the guts to take the risk. • Business Organizations • Sole proprietorship- one person owns the business. • Partnership- 2 people own the business. • Corporation- Shareholders own the business (stocks). They share in profits but are not responsible personally for debt.

  6. Negative Changes A. Child labor B. Unsafe Working conditions C. Overpopulated cities (from thousands to millions.) Industrial Revolution 1. Unsanitary living conditions a. Disease b. Rats, filth c. Poor living conditions d. People living in slums D. Environment 1. Depleting natural resources 2. Polluting water supply E. Growing gap between the rich and the poor

  7. II. Positive Changes A. Labor laws 1. Limiting working hours, age and safety B. Collective Bargaining 1. Labor unions a. Striking for improvements b. Better working conditions c. Better pay C. Growing Middle class 1. New wealth, better standard of living D. New Tax Revenue 1. Public education 2. Improved infrastructure (police, sanitation, etc.)

  8. III. Capitalism vs. Socialism A. Adam Smith- Laissez Faire, Capitalism B. Karl Marx- Communism, Socialism 1. Constant struggle between rich and poor. 2. “Haves” Bourgeosie and “Have Nots” Proletariat 3. “The proletarians have nothing to lose but their chains. They have a world to win. “Workingmen of all countries, unite.”

More Related