Next Year

1. Next Year • Add a column for communism and perhaps the other economic theories. Kids seem to be mixing up socialism and communism concepts (cause communism is a more interesting story).

2. Unit: The Industrial Revolution Take out assignment for a stamp What will we learn today?10.3.6 Analyze the emergence of capitalism as a dominant economic pattern and the responses to it (Utopianism, Social Democracy, Socialism, and Communism). How involved should the government be in helping its people? For example, should the government pay for roads? Police? College? Healthcare? Explain.

3. Assignment :9.4 Economic Theories

4. Objectives • Identify thinkers and ideas that supported industrialization • Explain the origins and main concepts of socialism and Marxism

5. Essential Question • How were the different economic systems of the industrial revolution different?

6. The Big Idea • Conditions created by the industrial revolution led to different ideas for economic systems.

7. Need for Reform • During the 19th century, the Industrial Revolution not only revolutionized the way things were made, but also created many problems.

8. Tensions Created By the Industrial Revolution • The gap between the rich and poor widened • Business owners/leaders argued that the government should stay out of economic affairs. • Reformers argued the government needed to play an active role to improve the conditions for the poor. • Workers demanded better wages, more rights, and protection. • Workers form labor unions increase their influence, often times clashing with business owners

9. Checking for Understanding • Do business owners want the government to be more involved or less involved? less

10. Checking for Understanding • Workers want the government to be ______ involved. more

11. Economic System During the Industrial Revolution

12. Do you agree with this statement??:: • If I work really hard in life, I can be successful.

13. Laissez-Faire • Adam Smith- • Wealth of Nations • “Let people do as they please.”- Gov’t HANDS OFF • The idea that the government should not interfere with or regulate industries and business. • if government allowed free trade, the economy would prosper • This policy favors a free enterprise system unregulated by the government.

15. Business and Industry Gov’t Gov’t Laissez Faire GOVT IS HANDS OFF BUISNESS

16. Laissez Faire creates uneven distribution of wealth Wealthy Industrialist like Laissez Faire because the government does not intervene

17. Adam Smith • His arguments rested on what he called the Three Natural Laws of Economics: 1. Law of self interest— People work for their own good. 2. Law of competition— Competition forces people to make a better product. 3. Law of supply & demand— Enough goods would be produced at the lowest possible price to meet the demand in a market economy Adam Smith 1723-1790

18. Factors of Production • Land (Natural Resources) • Labor (People) • Capital (Money & Machines)

19. Do you agree with this statement??:: • All people are selfish.

20. Checking for Understanding • What country's economic system is based on Adam Smith's ideas? America

21. Checking for Understanding • Tell me an example of a product that is better or cheaper because of competition: ???

22. Free Enterprise! Which store should I choose! • Free enterprise system =Businesses are owned by private citizens. • Companies compete to win customers by making the best products at the lowest prices.

23. Checking for Understanding • In a free enterprise system, who owns businesses? Private investors (people like you and me)

24. Capitalism • Definition of capitalism: an economic system based on private ownership and on the investment of money in business ventures in order to make a profit • These ideas helped bring about the Industrial Revolution and supporters of capitalism believed its success was due in part by the fact that the government did not interfere in economics.

25. Checking for Understanding • Tell me an example of a capitalist country. America

26. BrainPop

27. Paper Clip Game • Capitalist Version

28. New economic theories were formed as a response to the inequalities that developed under capitalism

29. Do you agree with this statement??:: • No matter what, life isn’t fair, so it is the government’s job to help out the struggling people.

30. Socialism • Definition of socialism: an economic system in which the factors of production are owned by the public and operate for the welfare of all. • Supporters of socialism believed: • Governments should intervene in business • Wealthy people or governments had an obligation to take action to make peoples lives better • Condemned capitalism, which they argued, created the huge gap between the rich and the poor.

31. Checking for Understanding • Tell me an example of a socialist country. England, France

32. Do you agree with this statement??:: • The goal of society should be to bring the greatest good for the greatest amount of people.

33. Utilitarianism • A form of socialism • Definition of utilitarianism: the theory, proposed by Jeremy Bentham in the late 1700s,. • Idea that the goal of society should be to bring about the greatest happiness for the greatest number of people.

34. Do you agree with this statement??:: • Life should not be about making money and competing with each other. Instead, we should live in harmony.

35. Utopia • Robert Owen’s vision of ‘Utopia’ • Dream of a PERFECT SOCIETY • Built a factory and a model village in New Lanark, Scotland. • Built homes for workers, opened a school for children. • Workers were generally treated well, illustrating an employer could offer decent living and working conditions while still running a profitable business.

37. Checking for Understanding • Do you think utopia is possible? ???

38. Do you agree with this statement??:: • Everyone should make exactly the same amount of money, whether you’re a doctor or an employee at McDonalds.

39. The most RADICAL of these new economic and political theories was COMMUNISM

40. Marxism • “Communist Manifesto” • Definition of Marxism: A radical type of socialism introduced by Karl Marx and Friedrich Engels Friedrich Engels (1820-1895) Karl Marx (1818-1883)

42. The Communist Manifesto • Marx and Engels argued that human societies have always been divided into two warring classes: • The middle class, “haves” or employers, called the bourgeoisie • The wealthy controlled the means of producing goods • The working class, “have-nots” or employees called the proletariat • The poor performed backbreaking labor under terrible conditions. proletariat= have not

43. Marx’s Prediction • The Industrial Revolution enriched the wealthy and impoverished the poor. Marx and Engels Predicted that the workers would overthrow the owners: • “the proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries unite.”

44. The Future According to Marx • Marx argued the capitalist system would destroy itself • The large proletariat will revolt, seize factories & mills from capitalists • Results of the proletarian revolt: • Workers will share in the profits • Economic equality will be established for all • Cooperative living & education will yield a classless society and the state/government will disappear. • The final phase of Marxism is called communism

45. Communism • Definition of communism: an economic system in which all means of production—land, mines, factories, railroads, and businesses—are owned by the people, private property doesn’t exist, and all goods and services are shared equally. • A form of socialism that sees class struggle between employers and employees as unavoidable.

46. BrainPop

47. Short-Term Results of Communism • 1848-1849: • Many revolts in Europe • European leaders put down revolts • 1900s: • Marxism inspired revolutionaries in Russia (Lenin), China (Mao Zedong), and Cuba (Fidel Castro). • These leaders adapted Marxism to their own specific situations and beliefs

48. Paper Clip Game • Communist Version