Essay Review Economic Systems!

1. Essay ReviewEconomic Systems!

2. Components of the Regents Essay • F – Facts, Evidence & Details (the explanation, specifics and substantiation of the essay) • O – Organization (Introduction, Body Paragraphs & Conclusion) • L – Level of Analysis (the long-range or immediate impact of the information on a society or on history) • D – Development of the Task (the bullets of the task)

3. The Economic Systems Essay! Task: Identify one society and one economic system that has been used or is being used in that society: •Discuss the historical circumstances surrounding the development of that system •Describe two features of the economic system •Evaluate the impact that economic system had on this society during a specific historical period

5. Essential Information for this Essay!

6. Circumstances: Tribal invasions made Europe a dangerous place Peasants & Lesser lords exchanged labor & loyalty for land & protection Features: Manor system is self-sufficient – limited trade or travel Land is the basis of wealth and power Manorialism *Western Europe During the Middle Ages* • Impact: – Trade slowed – System of De-Centralized and confusing political loyalties emerged – Few people ever leave the manor on which they are born – Rigid social system based on birth

7. Circumstances: Governments had promoted small business during the era of mercantilism Mechanizing inventions allowed development of factories & mass production Features: Pure laissez-faire capitalism – no gov’t restrictions on business Supply & demand pricing Law of Competition (produces best products) Capitalism *Western Europe In the Industrial Revolution* • Impact: – Abuse of labor. Long hours, low pay, terrible conditions, child labor. (No gov’t regulation) – Terrible living conditions (slums), environmental pollution – Ultimately standard of living rises as cost of products declines and wages increase (after gov’t involvement)

8. Communism *Soviet Union 1917-1990* • Circumstance: • Social, Political & Economic conditions led to revolution • Bolsheviks institute a communist economy • Features: • Collectivized agriculture • Emphasis on heavy industry • Theoretical economic equality • Impact: – Lack of focus on consumer goods production led to low standard of living – Resistance to agricultural collectivization resulted in tremendous famine (20 million dead)

9. Circumstance: Growth of commerce in Europe Spain’s conquest of the Americas Features: Amount of gold & silver in treasury defines the power of a nation Nations seek to develop favorable balance of trade Nations use colonies to assure favorable trade Mercantilism *Spain 1500 - 1820* •Impact: – Huge amounts of silver flood Spanish economy creating inflation (there and world-wide) – Spain closely controls colonial economies, focusing on mining and cash crop production; No colonial industry!

10. Mixed Economy (Socialist + Capitalist) *India 1947-1991* • Circumstance: • Upon independence, India faced structural economic problems created by the partition of Pakistan • Needed to create industry • Features: • Government ownership & control of major industries, transportation, communication & utilities • Private enterprise was encouraged at the local & retail level • Impact: – Industry does develop, but economic growth is slow in the Nehru/Gandhi era (~3.5% per year) – Budget deficits, inflation, food shortages – Rapid growth in 90s & 2000s as market economy is embraced

11. Circumstance: Anti-Nationalist sentiment led to revolution and a rise to power of the communist party Features: Collectivized agriculture 5 year plans focused on heavy industry Introduction of capitalism under Deng Xiaoping Communism *China 1949-present* • Impact: – The Great Leap forward forced agricultural collectivization and focused on steel production. Tremendous famine – 30 million dead – Failure of the Great Leap led to the Cultural Revolution and greater disruption of China’s society – Deng’s changes have brought growth & prosperity (to some) in China