Bellwork ***I am collecting this today.***
Answer the following questions based on your opinion:
1. Are poor people to blame for their own situation? If not,
who should be responsible for fixing their situation?
2. Should the goal of society be for all people to be equal in
wealth, or should everyone be on their own to gain or lose
that wealth?
3. Should the wealthy in a society be required to give back
money to those less fortunate? If so, who should decide
how much and where it should go?
Head’s Up!
• TEST on Industrial Revolution will be next week!
• Review Days: Oct. 30 (A) & Nov. 2 (B)
• Test Days: Wednesday, Nov. 4 (A) & Thursday, Nov. 5 (B)
• Begin reviewing your notes!
• Check the website if you are missing notes!
New Ideas About Economics
Capitalism, Socialism, and Communism
Today’s Agenda
• Standard W.8 Write an informative piece analyzing the emergence of
capitalism and the responses to it including socialism and communism
• Objective: I can explain the differences between capitalism, socialism, and
communism in writing.
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Bellwork
Notes
Penny Game
Writing Assignment
Notes
The New “isms”
• Industrialism was changing not just products and
work, but also how people thought about economics.
• Emergence of new economic ideologies
• Capitalism
• Socialism
• Communism
Capitalism
Adam Smith
• The father of Capitalism
• Book – The Wealth of Nations , 1776
• Believed in individual ownership and competition
What is Capitalism?
• Capitalism: An economic system in which entrepreneurs take a
risk in business to make a profit. Competition must exist
• Government’s Role:
• Should not interfere with the economy or business
• Basic Ideas:
• Businesses should be owned by individuals
• Laissez-faire – economic policy of letting owners of industry and
businesses set working conditions without interference (“Hands Off”)
• Free Market – Runs Itself!
• People must make money and provide for themselves on their own
“It is not from the benevolence (good
heartedness) of the butcher, the brewer, or
the baker that we expect our dinner, but from
their regard to their own interest.”
Adam Smith
What’s good about capitalism?
• Freedom and choice
• You can work wherever, buy whatever, and pretty much do
whatever you want
• Promotes economic growth by providing open competition
• Provides individuals with better opportunities
• If you are successful, you can be very successful. (Think Bill Gates.)
What’s bad about Capitalism?
• Fierce Competition
• No “safety net”
• If you’re unsuccessful, you can be very unsuccessful. Think
about the poor.
• Big gap between rich and poor
Socialism
Robert Owen
• Father of Socialism
• Believed economics could make better
societies
• Believed that society/government was
responsible for people’s well-being
What is Socialism?
• Socialism: An economic system in which the factories and businesses are
owned by the public and operate for the welfare of all.
• Government’s Role:
• Control SOME industry (factories), which would ensure equality and get rid of
poverty
• Basic Ideas
• Factories are owned by the people and run for the good of all
• Protect the poor from greedy factory owners
• The idea of SHARING
• Everyone, workers included, shares the profits
• Government provides for those with less
What’s good about socialism?
• All people are supposed to benefit
• Many people can control the economy
What’s bad about socialism?
• More power in the government’s hands
• Less Entrepreneurship
• Less opportunities
• Fewer people that are born poor become rich
Communism
Karl Marx
• Father of Communism
• Book – The Communist Manifesto, 1848
Beliefs of Marx
• History is the history of class struggle
• Haves vs. Have Nots
• The workers must unite to overthrow the owners
• Shared ownership (no private property)
• The workers control the means of production
The Communists openly declare that their ends
can be attained only by the forcible overthrow of all
existing social conditions. Let the ruling classes
tremble at a Communist revolution. The
proletarians have nothing to lose but their chains.
They have a world to win. Workingmen of all
countries, unite!”
- Karl Marx
What is Communism?
• Communism: An economic system in which the means of production is
owned by the government. Private property does not exist. The goal is a
classless society.
• Government’s Role:
• At first, “dictatorship of the people”
• Fade away, people would share everything
• Basic Ideas:
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Believed workers would take over and share work and profits
Create a classless society
Everyone would be equal economically
All would be owned by the people and there would be no need for government
What is good about Communism?
• Security, basic needs met
• Everyone would have a job, house, healthcare, etc.
What’s bad about communism?
• Lack of choice
• No reward for being a better worker or punishment for being a
slacker
• Everyone expected to be the same
Cowism’s
• CAPITALISM: You have no cows. But you are blasted by commercials
that assure you that you have a thousand cows, a thousand bulls, and
a ranch bigger than Texas. But you have no cows, no chickens, and no
farm or ranch.
• SOCIALISM: You have two cows. The government takes them and
puts them in a barn with everyone else's cows. You have to take care
of all the cows.
• COMMUNISM: You have two cows. Your neighbors help you take care
of them, and you all share the milk. The government gives you as
much milk as you need.
Dinner with a Capitalist, Socialist, and
Communist Video
• https://www.youtube.com/watch?v=b8pcmlluEEE
Video
• https://www.youtube.com/watch?v=gFJlivYEdAI
The Penny Game
The Penny Game
• You will receive some pennies from the teacher.
• You will challenge your classmates in a game of “Rock, Paper,
Scissors” to gain more pennies
• You can play for as many pennies as you want and as many games as you
want but each person must agree
• Three 5 minute rounds (Capitalism, Socialism, Communism)
• At the end of each round you will answer the debrief questions on
your worksheet.
Round 1: Capitalism Rules
1. The other person must agree before you play.
2. No stealing.
3. No charity.
4. When finished, sit down.
*Answer Debrief Questions for Game 1*
Round 2: Socialism Rules
1.
2.
3.
4.
The other person must agree before you play.
No stealing.
No charity.
When the teacher (government) asks for pennies to
redistribute to the poorer students you must give
them up.
*Answer Debrief Questions for Game 2*
Round 3: Communism Rules
1. Give up all pennies.
2. No hiding them.
3. Everyone is equal.
*Answer Debrief Questions for Game 3*
Which economic system do you
prefer and why?
Assignment:
• Write a five paragraph essay explaining the three economic
systems.
• You should include the following information about each system:
• Founder of the economic system
• Describe what the economic system is and it’s basic ideas
• Some of the Pros and Cons of the economic system
• Your essay should include the following paragraphs
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Introduction
Body Paragraph 1 – Capitalism
Body Paragraph 2 – Socialism
Body Paragraph 3 – Communism
Conclusion
***This is a quiz grade. Due at the beginning of next class.***