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  1. 1. 1.) JESSICA CHEN- Capitalism, Middlemen, Laisse-faire, Entrepenuer2.) KYNING TILLINGHAST- Malthusism, Mercantalism, Bourgeoisie and Proletariat3.) INGRID LIU- Robber Barons, Monopoly, Low-wage, Labour Unions & Big business4.) CHRISTINE WANG- x,y,z factor, intellectual property5.) VIVIAN CHEN- Insurance, Banking system, stock market, barter system6.) SABRINA SHIH- Industrial Revolution, Inflation, Story of Stuff, Supply & Demand1.) Capitalism, Middlemen, Laisse-faire, EntrepenuerCapitalism:Now i want you to stand and look around the things in the room, where do you think all these stuff areproduced and organized to be sold and also what is the purpose behind these things?It starts of with capitalism. At this day, most owners, entrepreneurs or any producer still use the idea andpractice of capitalism to bring their products to the audience and most importantly, increase or preservethe wealth for themselves and the economy. So how and when did capitalism evolve? Capitalismpopularized and became a significant key to the era of Industrial Revolution. It was also the key tounlock the door to the great rise of the economy from Great Britain to other neighboring Europeancountries and then to America. During and after this era, Capitalism becomes an economic systemwhere capitalists are individuals in endeavor to use the means of production( capitals/ tools, materials,land, property) to earn their profits and benefits. Basically capitalism relies on labor exploitations andthe capitals to use. These human exploitations which comes with productive labor--the human worknecessary to produce goods and distribute them--has become an immense social problem in Europe inthe 19th century and the 20th century, due their low wages the labours receive. During the IndustrialRevolution, the capital of the 19th century in Europe was machines, labour, and the materials they use tocreate. For example, The textiles machines were used and operated by the labours, that is of any age thatis strong enough work , in the factories and then are produced into clothing or any textiles that then givento the owner to show it the audience. Thus he earns the profits and shares little of it to the labours. Thelabours get an insufficient money that is not enough to afford their necessary element of living. This mustbe a pain to us if we were the labours but now, the moderns days, capitalism is considered old school andis not much of a use anymore, according to the new accustoms of the way of economy by using ideas andcreativity , and then making new inventions individually without labor exploitation and capital.Middlemen:The middle men , started in the the 19th century , in the industrial revolution. the middle men werethe ones that made the most of the money through the process of producing a product to selling theproduct. The “middlemen” refers to the person selling the product or either bringing the idea out andefficiently from one. Therefore the producers of the product do not receive much credit, which are all inthe middlemen pockets, to afford their necessary needs for life. However, if the 19th century economywas without the middlemen, there probably wouldnt be an Industrial Revolution, moreover, the world sodepended on the economy wouldn’t be what is like today.Middlemens of today, CD Record companies, galleries,etc.Laisse- faire:The French term laissez-faire literally means "to let people do as they wish." In this case, capitalistare engaged in free marketing, which reduces the restrictions of the government and allows
  2. 2. freedom in the economy, to do with whatever they have ( capitals) for personal benefits.The term “laissez- faire” slogan was popularized by Vincent de Gournay, a french attendantof commence in the 1750s. He was the player of the removal of restrictions on trade andabolishing the regulations of the industry of France. He was incredibly inspired by the ColbertLegendre ,who who said “Leave it be, that should be the motto of all public powers, as the worldis civilized ... That we cannot grow except by lowering our neighbors is a detestable notion!Only malice and malignity of heart is satisfied with such a principle and our (national) interestis opposed to it. Leave it be, for heavens sake! Leave it be!”. Gournay transferred into hisslogan, “Let do and let pass, the world goes on by itself!"Entrepenuer:This term and idea started or either became quite popular in the Industrial Revolution. Entrepreneurs arethe creations of the new inventions and ideas. They flourished the economy and capital of many industriesin the Revolution. They also made a big impact on what we use today; such things ,that are created by thefamous entrepreneurs , like steam engines, the telegram, machines, cars and etc.3) Robber Barons, Monopoly, Low-wage, Labour Unions & Big business During the days of the American Industrial evolution, industrialists such as Andrew,Carnegie, John D. Rockefeller, and Cornelius Vanderbilt have all created monopolies within thebig businesses around the world. These were family dynasties who literally cornered the marketon essential and influential industries, including railroads, steel, and petroleum industries.People of the commons felt that these powerful industrialists of the gilded age should bereferred to as “robber barons.” They portrayed him as the cruel and ruthless businessmen who
  3. 3. exploited workers and forced horrible working conditions and unfair labor practices upon thelaborers; however, the other side of the view of industrialists were “captains of industries.” Theterm captain views these men as great leaders who have transformed the American economytremendously and are worthy of appraisal for creating such impact. Industrialists like AndrewCarnegie held a philanthropic view to the society, in other words, he believed that distributingfinancial support to the poor and those in need are fairly important, which in the modernsociety, is considered as a notable philosophic mindset. Businessmen reaped enormous profits during the Gilded Age through some significantstrategies. Powerful tycoons formed giant trusts to monopolize the production of goods thatwere high in demand. As mentioned, Andrew Carnegie was one of the Captains of Industry. Hehas built a enormous steel empire using vertical integration. Conversely, Rockefeller’s StandardOil Company used horizontal integration, which eliminated numerous competitors out ofbusiness by selling one single type of product in many markets, effectively creating a monopoly.These “captains of industry” had rumors that they cared little for consumers and more of theprofits they can increase through tactics, thus earning the nickname of “robber barons.” Organized labor did not fare nearly as well as big business during the Gilded age, as mostAmericans looked down on labor unions during the era. The first large union was the NationalLabor Union, formed right after the end of Civil War in 1866. Workers created the union toprotect skilled and unskilled workers. Despite all the unions for organized labor, workerscontinued to strike for better wages, hours, and working conditions. Amongst the most exclusivelabor union, American Federation of Labor emerged as the most powerful union in the late1880s.5.) Insurance, Banking system, stock market, barter system InsuranceInsurance often times refers to a promise of reimbursement in a risk or a loss; insurance, tiedclosely to economics, has been around since a long time ago; however, often times not in theform of currency and cash. The idea of insurance practices in the form of currency was firstpopularized by Benjamin Franklin in 1752, where he established Philadelphia Contributionshipfor the Insurance of Houses from Loss by Fire.Main Principles: ● Indemnity ● Proximate cause ● Contribution ● Subrogation ● Utmost Good Faith ● Insurable InterestTypes of Insurance: ● Auto Insurance ● Home Insurance ● Finical Insurance ● Health/Funeral Insurance
  4. 4. ● Accident Insurance ● Unemployment Insurance ● Casualty Insurance ● Life Insurance ● Sickness Insurance ● Property Insurance ● Liability Insurance ● Credit InsuranceControversies: ● Religion Concerns (Christians believe that insurance is a sign of lack of faith) ● Redlining (Denying the insurance coverage at certain geographical locations) ● Complexity of Insurance contracts Banking SystemA bank is a finical institution which accepts deposits and distributes the money to activities thatrequire finical support. The earliest evidence of a banking system dated back in 350-325 B.C ona sliver Greek drachm coin, the picture depicts a banker’s table.Impacts of Industrial Revolution:The Industrial revolution had a significant impact on the banking systems throughout Europe,creating the first national bank within Europe, channeling out more money, breaking out of themindset that money has a fixed amount. (It allowed people to invest with low interest rates)Stock MarketThe stock market, also known as the equity market, in a public entity in which companiesexchange stocks at an agreed price.Stock market in the 19 th century:The stock market originated about 200 years ago in the United States, this was the time whena private banking system started to develop, the private banks raised money by issuing stocksand shares, thus making the rich, richer.Barter systemThe barter system is wherer goods or services are directly exchanged for other goods orservices, no currency or money or involved throughout this process.Industrial RevolutionThe Industrial Revolution, a period of colossal and crucial changes, took place during the years of1760-1850. During these years, fundamental changes occurred in textile, agriculture, and metalmanufacture; transportation also greatly improved.The Industrial Revolution, refers to a period in the 18th and 19th century (1760-1850) of colossaland crucial economic, social, technological, ideology, and cultural change. Before the IndustrialRevolution, the world’s economy was mainly based on manual labour, this transformed into amechanical industry. Improvement in agricultural techniques and machinery reaped a massiveincrease in the supply of food and raw materials. Advanced technology resulted in increasedproduction, efficiency and profits which further resulted in an increase in commerce. The worldwas changed industrially and economically: the improvement of iron making techniques sky-
  5. 5. rocketed production levels, the invention of steam-power powered the many existing and/oremerging factories, the conoction of the Spinning Jenny resulted in much higher production ata lower cost, and the creation of quicker and newer transportation networks (i.e: railroads) notonly transported goods but also networked the world’s ideas. As a result of the double-timeurbanisation, living conditions grew worse and people had to turn to cramped houses and livingconditions. The anti-technology groups, the Luddites, attacked and plundered factories in theirattempts of bringing an end to child labour, and improving better health and work conditions.Though many sacrifices had to be made during this period, they were absolutely crucial to theadvancements which further progressed the world from a world lagging behind to a world full ofopportunities and innovations.Inflation“Inflation is always and everywhere a monetary phenomenon. To control inflation, youneed to control the money supply"- Milton Friedman During the 19th century, the globe went through a dyad of industrial revolutions, bothof which sustained periods of falling prices. Economy in the world, specifically Europe sky-rocketed during the late 1800s due to the heavy machinery that produced goods at a massiveamount. An important factor contributing to this sudden boon, sudden inflation, was the world’sstrong demand for steel. Bridges, railroads, tall buildings, and a myriad of machines that wereused to make living more convenient were all structures that required steel, thus the “steeleconomy” increased rapidly. It wasn’t until the mid-19th century did people come up with aquicker and more efficient way of producing steel—the Bessemer process. With the quickerproduction of steel, America’s steel production grew from 15 thousand tons in 1865 to over28 million tons by the year of 1910. Transportation advanced and improved at a significantamount after the Bessemer process. In the late 1890s steel sold for about $12, which is amajor deflation since the the 1873 where a ton would cost $100. Because of the sudden dropin steel prices, railroad companies snatched at the chance to lay thousands and thousands ofrailroads. This speedy laying of tracks thus connected many cities which increased the mailing
  6. 6. of mails—furthermore, ideas were shared at a much quicker speed. Older towns becamemore prosperous as a result of people moving out west to start new cities and towns with theexpansion of railroads.The Story of StuffThe story of stuff, an animated documentary directed and narrated by Annie Leonard of the life-cycle of goods is one that raises many brows--what is she talking about?!The Story of Stuff emphasizes and promotes sustainability and criticizes an over-load inconsumerism--a “disease” almost everybody has. Through this documentary, we’re given ahuge wake-up call through 7 different ‘levels’: Introduction, Extraction, Production, Distribution,Consumption, Disposal, and Another Way. Despite the video being a video that promotesa benevolent thought and one that tells the world about the truth of what’s really going on, Istrongly believe that this video is bias. The narrator fails to mention the benefits humans getfrom consuming, but instead she promotes anti-capitalism with her anti-consumer beliefs. TheStory of Stuff video misrepresents a lot of its data and quite a large amount of the data used inthe video cannot be found online, or anywhere else for that matter. Anne Leonard advocates theprospect of abandoning the system we use and live in today, however, I would like to cause astorm in your brain by ending with this question: Can’t we alter our system and try to improve itinstead of trying to completely abandon it with ideals and bias-facts (mainly used to intimidateconsumers) that a large amount of people don’t agree with?Supply & DemandSupply and demand, a fundamental concept of economics, is a concept that is of pivotalimportance. Supply refers to how much the market can offer, the relation between price andhow much of a product and/or service that can be supplied at a certain price is known as thesupply relationship. Demand represents how much of a product and/or service is desired byothers. The relationship between price and supply is known as the demand relationship. Inthe law of demand, if all factors remain the same, then the less people will be in demand for anobject if the price of the good is higher; so, the lower the price, the greater amount of buyers. Inthe law of supply, it states that the higher the price, the greater the quantity supplied. By sellinggoods and/or services at a higher level, increases revenue.Christine: Intellectual propertyIntellectual property (IP) refers to creations of the mind: inventions, artistic, literary, symbols,names and designed.etc. Going back about 1867 with the founding of the North GermanConfederation whose constitution granted legislative power over the protection of intellectualproperty. When the Paris Convention (1883) and the Berne Convention (1886) merged in189, the organization moved to Geneva in 1960, and establish the World Intellectual PropertyOrganization (WIPO).Richard Stallman argues that, although the term intellectual property is in wide use, it should berejected altogether, because it "systematically distorts and confuses these issues, and its use was
  7. 7. and is promoted by those who gain from this confusion."IP can divide to two categories1. Industrial property: which includes inventions (patents), trademarks, industrial designs, andgeographic indications of source for the employment, innovation or competition. Actually, it canbe called as intellectual property, they are almost the same nation.2. Copyright: copyright is basically to grant author’s original work, copy distribute or adapt workwhich include literary and artistic works such as novels, poems and plays, films, musical works,artistic works such as drawings, paintings, photographs and sculptures, and architectural designs.The normal synmbol of copyright is “ ©,” Generally, copyrighted work is accompanied by the copyrightsymbol ©. X,Y,Z factorX stands for the egoistic industrialists that they only care about their own personal benefitsand profits, they don’t care about the different industries’ situation and always want to liveby gaining windfall profits in the competition of the company. But the disadvantages of beingegoistic are like you won’t get any help if you get into any trouble like the danger of ownproperties. It might gets a serious problem of that.Y stands for the altruists industrialists who believe in socialism and often share the own profitsand benefits to each other that everyone is in peace. In here, I will give an example. Habib Sabet,one of Irans major industrialists, died of congestive heart failure on Tuesday at Cedars-SinaiMedical Center in Los Angeles. He was 86 years old and lived in Paris. He grew up in a poorbeginning. He founded more than 40 corporations and involved in banking, industry, businessand television. Because of his impoverished childhood, he became an altruists industrialists aswell. He was also a philanthropist and an art and antiques collector stood a important roll in
  8. 8. Bahai religious circles.Z stands for the industrialists who stand between X and Y.