What is Capitalism?A)“..An economic system in which money is invested in business ventures with the goal of making a profit”
• B) Role of market competition and entrepreneurial abilities• C)Principles of laissez faire “let people do as they please”
Capitalism and its ImpactsA)• The Wealth of Nations Adam Smith- defended free economy, claimed that government need not interfere in the economy.B)• Role of market competition and entrepreneurial abilities
• What were some theories opposed to capitalism?
• Tocqueville – French Philosopher• Consider what is happening among the working classes. Do you not see spreading among them……. Ideas not only to overturn gov’t, but society itself?
starter activity‘The Silent Highwayman’, Punch magazine, 1858. Whatis the artist trying to say about living conditions inVictorian London?
• Socialism and communismA)• Karl Marx’s Communist Manifesto (written with Friedrich Engels) and Das Capital•
B)• Response to the injustices of capitalismC)• Importance of redistribution of wealth to the communists
The Socialists:Utopians & Marxists People as a society would operate and own the means of production, not individuals. Their goal was a society that benefited everyone, not just a rich, well-connected few. Tried to build perfect communities [utopias].
SocialismA)Factors of production are owned by the public and operate for the welfare of all.B)Grew out of optimistic view of human nature and response to capitalism
Communism• A form of complete socialism in which the means of production—all land, mines, factories, railroads, and businesses—would be owned by all people.
• Communist Manifesto• Karl Marx-Marxism,• employers=“haves”=bourgeoisie; employees=“have-nots”=proletariat;• “Workingmen of all countries, unite.”• “The Proletariat has nothing to lose but their chains”• Distribute wealth back out to communist
Understanding 1• Capitalism and market competition fueled the Industrial Revolution. Wealth increased the standard of living for some.
Understanding 2• Social dislocations associated with capitalism produced a range of economic and political ideas, including socialism and communism.
Exit Quiz• 1. Who was the author of “The Wealth of Nations”?• 2. It stated that the government should not ______ with the economy.• 3. Karl Marx authored The _________ _________.
4. Name two theories that opposed capitalism• 5. Socialism was a philosophy that responded to the ___________ or wrong doings of capitalism.• 6. The form of socialism in which the means of production of would controlled by the people.
• 7. Capitalism and market competition fueled the ________ ___________.• 8. ________ is an economic philosophy that uses the principles of laissez-faire.
• 9. From what you have learned today, and the economic situation the U.S. has been going through, would the U.S., be better off as a Capitalist country, or a Socialist country?
From Industrial Rev. Quiz• 1. Which leader used guerrilla warfare to unite southern Italian states before turning them over to the king?A) Napoleon IIIB) Otto von BismarckC) Count CavourD) Giuseppe Garibaldi
• 2. Otto von Bismarck’s actions in unifying Germany were seen as an example of this strategy, which justifies all means to achieve and hold power.A) laissez-faireB) Manifest DestinyC) guerrilla warfareD) Realpolitik3. The final stage in German unification was:A) the Seven Weeks War.B) the Danish Rebellion.C) World War I.D) the Franco-Prussian War.
4) All of these are reason why the Industrial Revolution began in England except?• A) Land• B) Money• C) Socialism• D) Population• 5. How did the Enclosure movement lead to industrialization?• A) Improved the output on farms• B) Land owners sold land to Factory owners for profit• C) Enclosed land forced many people to move from rural areas to the city looking for work• D) Gave more people free time to invent new machinery
• 6. What did Otto Van Bismarck policy of “realpolitik” state?• A) A leader should listen to the will of the people• B) Candidates for office should tell the truth• C) Military power should be used as a last resort• D) Justify all means to achieve and hold power• 7. During the unification of Italy the Papal States were• A) Replacing one pope and voting in another pope• B) join willingly from the beginning• C) The last to join• D) Fighting a violent revolt against the Italian states
8. Adam Smith’s Wealth Of Nations supported the idea of a• A) State controlled economy• B) Free market economy• C) Communist takeover of Farming• D) Retarding of the Entrepreneur spirit9. What is laissez- faire economics?A) No gov’t interference in the economyB) Some industries should be owned by the stateC) Economy should be controlled by the gov’tD) Bourgeoisie should be controlled at a higher rate
10. The Communist Manifesto was written byA) Adam SmithB) John LockeC) Karl MarxD) Vladimir Lenin11. All of these are parts of Communism exceptA) Rise of ProletariatB) Redistribution of wealth to the poorC) Gov’t control of the economyD) Laissez – Faire economy
• 12. Who helped Karl Marx write the “Communist Manifesto”?• A) Adam Smith• B) Frederick Engels• C) John Locke• D) Thomas Hobbes13. One negative consequence of Capitalism wasA) Radical governments taking overB) Formation of Communism in EuropeC) Unequal distribution of wealthD) Movement of jobs to the city
14. Socialism and Communism believes the economy is best managed byA) A gov’t controlled by the workersB) The marketC) A gov’t controlled by factory workersD) Bankers15. How did the Industrial Revolution influence Imperialism?A) Europeans felt sorry for their “Little Brothers”B) Europeans wanted a better environmentC) It created a need for new landD) It created a need for raw materials