Industrial revolution
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The document discusses different economic systems from the Industrial Revolution period. It describes capitalism, in which Adam Smith advocated for governments to take a hands-off approach to business. It then describes socialism, which Karl Marx and Friedrich Engels proposed as an alternative where groups would control trade and business to provide citizens opportunities to make money, since capitalism only enriched some. It also mentions how banks emerged during this time to provide loans for investments and keep money secure, earning interest.
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Industrial revolution
- 2. JOURNEY
- 4. CAPITALISM Idea of laissez-faire capitalism was given by ‘Adam Smith’ which suggested that the government should have ‘hands-off’ approach to business. No interference into private business.
- 5. SOCIALISM Idea was put forward by Karl Max and Friedrich Engels. Capitalism made only a particular richer, rich and the workers poorer. Socialism stated that a group of people will handle the trade and business , thereby giving other citizens an opportunity to make money.
- 6. BANK: As socialism emerged people needed money for investment and also where trade ruled the place, banks were needed to keep the money safe. Security reasons. Banks provided loan to people thereby earning huge interest in return.