LAISSEZ-FAIRE ECONOMICS “hands off” Govt. should not interfere in economy AKA Capitalism Adam Smith- The Wealth of Nations free market No regulation- more good at lower prices Make goods more affordable
MORE LAISSEZ-FAIRE GUYS Thomas Malthus Population would outgrow food supply Believed in nature’s “natural” checks on population Thankfully, he was wrong David Ricardo Write “Iron Law of Wages” Did not believe in government help for the poor
UTILITARIANISM Goal of society should be the greatest happiness for the greatest number of citizens possible Jeremy Bentham Laws should be judged on their utility Believed in individual freedom, but the govt. should get involved in some circumstances.
SOCIALISM People as a whole (not individuals) own the means of production Utopians- Believed in society where everyone works and shares equally- no rich and poor Seen as impractical Robert Owen set up Utopian community in Scotland
KARL MARX German philosopher Thought utopians were unrealistic Wrote The Communist Manifesto with Friedrich Engels Society with no social classes Means of production owned by the community Struggle between “haves” (bourgeoisie) and “have-nots” (proletariat). Believed the proletariat would rise up and establish a classless society
MARIXISM FLOURISHES Social democracy Gradual transition from capitalism to socialism Inspired Revolutions around the world Russia, Asia, Latin America, Africa Decline People felt stronger ties to their own country than to world wide communism Today, there are very few communist countries, but many with elements of capitalism