Economic Philosophies
Capitalism and Communism
What is Capitalism?
A)“..An economic system in which
money is invested in business
ventures with the goal of making a
profit”
• B) Role of market competition
and entrepreneurial abilities
• C)Principles of laissez faire “let
people do as they please”
Capitalism and its Impacts
A)• The Wealth of Nations Adam Smithdefended free economy, claimed that
government need not interfere in the
economy.
B)• Role of market competition and
entrepreneurial abilities
Adam Smith – Wealth of Nations
C)• Impact on standard of living and the
growth of the middle class
D)• Dissatisfaction with poor working
conditions and the unequal distribution of
wealth in society
•
Stereotype of the Factory Owner
• What were some theories opposed to
capitalism?
• Tocqueville – French Philosopher
• Consider what is happening among the
working classes. Do you not see
spreading among them……. Ideas not
only to overturn gov’t, but society itself?
 starter activity
‘The Silent Highwayman’, Punch magazine, 1858. What
is the artist trying to say about living conditions in
Victorian London?
• Socialism and communism
A)• Karl Marx’s Communist Manifesto
(written with Friedrich Engels) and Das
Capital
•
B)• Response to the injustices of
capitalism
C)• Importance of redistribution of wealth
to the communists
The Socialists:
Utopians & Marxists
 People as a society would operate and own the
means of production, not individuals.
 Their goal was a society that benefited
everyone, not just a rich, well-connected few.
 Tried to build perfect communities [utopias].
Socialism
A)Factors of production are
owned by the public and
operate for the welfare of all.
B)Grew out of optimistic view of
human nature and response to
capitalism
Communism
• A form of complete socialism in
which the means of
production—all land, mines,
factories, railroads, and
businesses—would be owned
by all people.
• Communist Manifesto
• Karl Marx-Marxism,
• employers=“haves”=bourgeoisie;
employees=“have-nots”=proletariat;
• “Workingmen of all countries, unite.”
• “The Proletariat has nothing to lose but their
chains”
• Distribute wealth back out to communist
Understanding 1
• Capitalism and market competition
fueled the Industrial Revolution.
Wealth increased the standard of
living for some.
Understanding 2
• Social dislocations associated with
capitalism produced a range of
economic and political ideas,
including socialism and
communism.
Exit Quiz
• 1. Who was the author of “The
Wealth of Nations”?
• 2. It stated that the government
should not ______ with the
economy.
• 3. Karl Marx authored The
_________ _________.
4. Name two theories that opposed
capitalism
• 5. Socialism was a philosophy that
responded to the ___________ or wrong
doings of capitalism.
• 6. The form of socialism in which the
means of production would be controlled
by the people.
• 7. Capitalism and market competition
fueled the ________ ___________.
• 8. ________ is an economic
philosophy that uses the principles
of laissez-faire.
• 9. From what you have learned today, and
the economic situation the U.S. has been
going through, would the U.S., be better
off as a Capitalist country, or a Socialist
country?
1. The Communist Manifesto was written by
A) Adam Smith
B) John Locke
C) Karl Marx
D) Vladimir Lenin
2. All of these are parts of Communism except
A) Rise of Proletariat
B) Redistribution of wealth to the poor
C) Gov’t control of the economy
D) Laissez – Faire economy
3. Who helped Karl Marx write the “Communist
Manifesto”?
• A) Adam Smith
• B) Frederick Engels
• C) John Locke
• D) Thomas Hobbes
4. One negative consequence of Capitalism was
A) Radical governments taking over
B) Formation of Communism in Europe
C) Unequal distribution of wealth
D) Movement of jobs to the city
5. Socialism and Communism believes the economy
is best managed by
A) A gov’t controlled by the workers
B) The market
C) A gov’t controlled by factory workers
D) Bankers
6. How did the Industrial Revolution influence
Imperialism?
A) Europeans felt sorry for their “Little Brothers”
B) Europeans wanted a better environment
C) It created a need for new land
D) It created a need for raw materials