The document discusses the nature of capitalism in the USA in the 1920s. It describes capitalism as an economic system where private owners control trade and industry for profit, rather than the state. In the 1920s in America, capitalism centered on individual entrepreneurs who took risks to develop businesses without government interference. A "free market economy" developed where prices were set by supply and demand. While some individuals became very wealthy, workers were not given many rights or benefits at this time under the American capitalist system.

1. THE NATURE OF CAPITALISM
IN THE USA
WHAT WAS THE NATURE OF CAPITALISM IN THE USA IN THE
1920S?

2. RECAP
• IT IS IMPORTANT TO UNDERSTAND THAT THE FOCUS OF THIS SECTION IS
ALMOST IN DIRECT CONTRAST TO THE PREVIOUS TOPIC.
• PREVIOUSLY, LEARNERS WERE REQUIRED TO UNDERSTAND THE DEVELOPMENT
OF THE USSR THROUGH SOCIALISM
• TODAY WE WILL BE LOOKING AT CAPITALISM AND ITS DEVELOPMENT IN THE
USA

3. LESSON OUTCOMES
• THEY MUST BE ABLE TO KNOW WHAT CAPITALISM IS
• KNOW THE CHARACTERISTICS OF CAPITALISM
• UNDERSTAND THE NATURE OF CAPITALISM IN THE UNITED STATES OF AMERICA
• KNOW THE MYTHS IN RELATION TO CAPITALISM AND THE TRUTH

4. WHAT DO YOU SEE IN THIS PICTURE?

5. WHAT IS CAPITALISM
• AN ECONOMIC AND POLITICAL SYSTEM IN WHICH A COUNTRY'S TRADE AND
INDUSTRY ARE CONTROLLED BY PRIVATE OWNERS FOR PROFIT, RATHER THAN
BY THE STATE.
• IT IS THE OPPOSITE TERM OF COMMUNISM IN SUCH A WAY THAT COMMUNISM IS
AN ECONOMIC AND POLITICAL SYSTEM WHERE THE COUNTRY’S TRADE AND
INDUSTRY ARE CONTROLLED BY THE STATE.
• DO YOU NOTE THE DIFFERENCE?????

6. CHARACTERISTICS OF CAPITALISM
• 1. PRIVATE OWNERSHIP- INDIVIDUALS HAVE THE RIGHT TO OWN PROPERTY AND
ALSO FREE TO USE IT AS THEY LIKE
• 2.FREEDOM TO CHOOSE OCCUPATION- INDIVIDUALS TO ENTER THE FIELD IN
WHICH THEY HAVE KNOWLEDGE AND PURCHASE THE PROPERTY, WHICH YIELDS
MAXIMUM PROFIT.
• 3.FREEDOM TO SAVE AND SPEND- CONSUMERS HAVE LIBERTY TO DISPOSE OF
THEIR PERSONAL INCOME IN ANY WAY THEY LIKE.
• ANY CHARACTERISTICS YOU CAN MENTION????

7. THE NATURE OF CAPITALISM IN THE USA
• LIKE COMMUNISM IN RUSSIA, AMERICAN CAPITALISM WAS AN IDEOLOGICAL AND
POLICY FRAMEWORK THAT WAS VARIED IN BOTH APPROACH AND APPLICATION.
• EARLY AMERICA CAPITALISM CENTRED ON THE INDIVIDUAL ENTREPRENEUR OR
BUSINESSMAN.
• IN AMERICA, INDIVIDUALS TOOK THE RISK AND DEVELOPED BUSINESSES AND
INDUSTRIES.
• GOVERNMENT DID NOT INTERFERE IN ANY WAY WITH HOW THEY RAN THEIR
BUSINESSES.
• THESE INDIVIDUALS WERE GREATLY ADMIRED.
• PRESIDENT HERBERT HOOVER USED THE TERM “RUGGED INDIVIDUAL” IN HIS

8. THE NATURE OF CAPITALISM IN USA CONT….
• IN THE LATE 1928, THERE WERE ALREADY 11 000 MILLIONAIRES IN THE USA.
• THIS ECONOMIC POLICY MEANT THAT WHILE ENTERPRISING MEN MADE MONEY, THE
GOVERNMENT DID NOT REGULATE HOW THEY DID THAT AND DID NOT GIVE THE WORKERS
OR LABOUR ANY RIGHTS AND BENEFITS.
• ECONOMISTS CALL THIS A “FREE MARKET ECONOMY”.
• PRICES ARE SET BY THE MARKET AND WHAT PEOPLE/CONSUMERS ARE PREPARED TO PAY.

9. MYTHS ABOUT CAPITALISM
• 1.CAPITALISM WAS CREATED: MISUNDERSTANDINGS ABOUT CAPITALISM IS THE
IDEA THAT IT WAS CREATED BY SOMEONE. TRUTH IS, IT A SYSTEM THAT
EVOLVES OUT OF HUMAN INTERACTION AND DISCOVERY.
• 2.CAPITALISM CREATES POVERTY: THIS DECLINE IN POVERTY HAS HAPPENED AS
COUNTRIES HAVE COME TO EMBRACE MARKET CAPITALISM AS THE WAY
FORWARD – ESPECIALLY CHINA HENCE IT IS ONE OF THE SUCCESSFUL
COUNTRIES
• 3.CAPITALISM CREATES WINNERS AND LOSERS: ALL ECONOMIC SYSTEMS HAVE
SOME INDIVIDUALS WHO SUCCEED AND OTHERS WHO FAIL IN ONE FORM OR
ANOTHER BUT CAPITALISM ESCALATES THE NUMBER OF WINNERS.
• ADDITIONAL MYTHS?

10. QUICK QUESTION AND ANSWER ACTIVITY
• HTTPS://WORDWALL.NET/RESOURCE/35308576/QUESTION-AND-ANSWER-
ACTIVITY

11. CONCLUSION
SUMMARY OF THE LESSON
HOME WORK: HANDOUTS WILL BE DISTRIBUTED BY
THE TEACHER

12. CONCLUSION CONT…

13. CONCLUSION CONT..
•