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Examine the economic systems of Capitalism, Socialism and Communism and how they work. Day 71-75 Objectives. 1. Four “Economic” Systems from the Ind Rev. Capitalism Liberalism Socialism Communism. Free Market. Gov. 2 ways to look at 3 of the economic systems.
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Examine the economic systems of Capitalism, Socialism and Communism and how they work Day 71-75 Objectives
1. Four“Economic”Systemsfrom theInd Rev • Capitalism • Liberalism • Socialism • Communism
Free Market Gov 2 ways to look at 3 of the economic systems • Socio-Economic Pyramid (taxes) • VenDiagram (Gov intervention)
Democracy Dictatorship b. what gov exists in these systems?
Capitalism Peaks during the Ind Rev • Background… • 1700s during Enlightenment • More popular in 1800s • Pioneers? • Principles and Beliefs?
b. How much can Gov control the Free Market? Free Market Gov
Free Market Free Market Free Market Gov Gov Gov Free Market & Gov • What do we see happening in these models? • Which model would the Capitalist like most? • Spectrum…
Under Capitalism, who controls the production of goods?
Social Class Pyramid • What happens to the pyramid, Bill Gates and the Gas Station Worker?
Capitalism booming during the IR • Demand for goods higher than ever…all classes • Materialistic culture born (?) • Corporations created • built with stock-holders • Monopolies (eh)and Trusts form • What are they?
Darwinism & Economics • Charles Darwin writes a book in 1859… • On the Origin of Species • What the main messagein the book? • Natural Selection • Survival of Fittest…
Economists applyDarwinism toEconomics… • Joseph Schumpeter and Evolutionary Economics (1911) • Macro-economic equilibrium exists in the free market • This equilibrium is constantly being destroyed by innovations made by entrepreneurs • New/Strong companies survive • Weak/Outdated companies die
Liberalism • Origins and background so far? • Enemy? • Why did it grow during the IR? • Economic and Political Liberalism…
Utilitarianism • Created by Jeremy Bentham!!!!!!!!!! • 1748-1832 • Philosopher • Social and Political Reformer • Abolitionist • anti-death penalty • animal rights • Equal rights for women • physical punishment • prison reform (panopticon)
Utilitarianism • laws should be judged by their “utility” • “Greatest Happiness Principle” • Largest amount of pleasure over pain • Goal of a law = greatest good for the greatest number of people • Slowly accepted in late 1800s and still used today
John Stuart Mill • Student of Bentham • On Liberty in 1859 • The Individual should have as much personal liberty as possible • Freedom of Speech • Women’s Rights • Equal Education • Would believe in the “Flat Tax” today • But Inheritance Tax too
Socialism • What is it (main beliefs) • Who is Socialist today? Where does Socialism exist the most today?
Socialism vs Capitalism • Socialists believe Industrial Capitalism is…. • Why? • Socialism says it is the ideal system…why? • looks out for everyone’s well-being (philosophe?) • Early Socialists • Robert Owen and Charles Fourier Good Bad
Free Market b. Free Market & Gov? • The Free Market…what happens to it? • In a Democracy, how does this happen? • In a Dictatorship, how does this happen? Laws Force Gov
Who Controls Production of Goods? • Capitalism? (1) • Just Ownership • Socialism? (3) • Ownership • Unions • Gov • In Socialism, is Government on the side of the Ownership or Workers?
Socialism & the Socio- Economic Pyramid • Social Class Pyramid…what happened to it? • Government and laws impact it…how • Taxes (progressive) • less distance between rich and poor
Socialism in Action… • Late 90s, fen-phen was a popular weight-loss drug. The FDA allowed the drug and then people reported having heart problems from the drug. So the FDA forced the drug off the market. • Phen-fen is made up of 2 drugs…now Pfizer is remaking the drug with the “good” half of it, and not the bad half that leads to heart problems
Socialism’s Impact? • Socialist parties emerge during 1800s • Where is it today? • All governments pass some “Socialist” laws • Liberal Left • Any laws for working class/workers • Any laws that hurt business or involve government “touching” the free market • Environmental laws
Free Market Gov Final Question • Socialism can be seen on a spectrum. You can have very little Socialism in your country, or you can have complete Socialism, or something in the middle. On a scale of 0-10, where do you think the US Government/Economy currently exist? Also decide where you want the US Government/Economy to be. Try not to pick #5. Explain why you think so on your class’s blog page.
Opening Question • Title = Poster Analysis • What do you see in this poster that you have learned about already…think geometrically • What is the opinion expressed in this poster?
Communism • Originator • Karl Marx (1818-1883) • German atheist banned from academics and journalism • hated Capitalism • prosperity for few • poverty for many
Marx’s Co-writer • early 1840s Marx meets Friedrich Engels (1820-1895) • Their major work (with recipe) • Communist Manifesto
Communism is… • A form of Socialism that follows a storyline that includes DRAMATIC, USUALLY VIOLENT CONFLICT • Requires a… • Want to guess the storyline?
Gov Free Market • How should the models look? • Gov-FM model • Socio-economic pyramid?
3. History is a story of Conflict • “Haves” (Oppressors) • own the means of production • control society and its wealth (PERSIAGM) • Bourgeois • “Have Nots” (Oppressed) • working class or “proletariat”
Marx’s Vision • A country is Industrializedand Capitalist • Capitalism will fail (how) and Marx’s system will take over from the chaos • PES…Marxism is the next step to human progress
Marx called for... • The proletariat unite & overthrow capitalist bourgeois
Marx called for the Proletariat to ACT!! • “The proletarians have nothing to lose but their chains. They have a world to win. WORKING MEN OF ALL COUTRIES, UNITE!”
4b. Who Rules? • “Dictatorship of the Proletariat” • take over control of production… • create classless, communist society • control economics and politics of the country • Thoughts?
Democracy Dictatorship? or • In theory, Democracy • no political/gov struggle • wealth shared by Proletariat • no private property • Equality • Sounds like which writer?? • In reality, Dictatorship
Historical Impact • Communism is an economic system that exists with Dictatorships (examples?) • Russian Revolution 1917 • Stalin and etc • China’s Communist revolution 1940s • Mao Zedong • Castro in Cuba • Hugo Chavez in Venezuela?
Who likes it? Who dislikes it?
Marx’s Vision was WRONG! • Thought his theory was on natural laws of humans…was it? • What did not happen? • no misery of proletariat worldwide • so no world revolution • Proletariat’s conditions improved ENOUGH by governments (who became….) • workers did not unite over national borders to wage class warfare • nationalism was stronger…more unity in country • only local revolutions like USSR, China, Cuba…for now?
Communism and Marxism • Forms of Socialism… • State Socialism vs Market Socialism (China) • Scientific Socialism (Marx and Engels) vs Utopian Socialism • Reform vs Revolution • Anarchism!!! (No State! Stateless societies instead) • Democratic Socialism • Religious Socialism • Evolutionary Socialism… • Capitalists vs Socialists vs Marxists Complicated Spectrum