TWO MAIN SYSTEMS OF GOVERNMENT
 Adam
Smith
 Wrote
the Wealth of Nations
 “Liberty
guarantees economic
progress, therefore government
shouldn’t interfere”
 Individual
worker is most important
 Workers
work harder when they
make profit
 Companies
do better when they
make profit
 Laissez-faire
 government
shouldn’t be involved
 Free
market, unregulated by
government
 “Let
people do as they please”
 Wealth
 If
motivates people to work
you don’t work you will be poor
 Sellers
make $ by producing things
people want to buy; buyers spend $
on things they want most
Private
You
property
work harder for what’s yours
No
reason to work harder
Individual
Can’t
doesn’t matter
get rich
 Communism
 Karl
Marx (& Friedrich Engels)
 Wrote
Communist Manifesto & Das
Capital
 Said
human societies have always
been divided into classes 
bourgeoisie (owners, “haves”) vs.
proletariat (workers, “have-nots”
 Society
 All
as a whole is most important
people should be equal
 Marx
felt capitalism would destroy
itself  factories take over small
businesses (control everything),
workers would revolt, & society
would eventually become a classless
society
 Final phase is COMMUNISM
 Government
should be in total
control
 Government
would make sure
wealth is distributed evenly
Wealth
should be distributed
evenly
No
rich & no poor
No
private property
Everything
people
is shared by the
Some
people are poor
People
are too greedy
Owners
make $
mistreat workers to