Industrial Revolution Fri 3/7: Economic Systems of the Industrial Age Objective: Examine the rules...
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Industrial Revolution Fri 3/7: Economic Systems of the Industrial Age • Objective : Examine the rules of an early European factory and compare the factory system to the cottage industries. • Bell Work : If you were to have your own business – name 1 golden rule that you would all of your employees to…
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Transcript of Industrial Revolution Fri 3/7: Economic Systems of the Industrial Age Objective: Examine the rules...
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Fri 3/7:Economic Systems of the Industrial
Age• Objective: Examine the rules of an early
European factory and compare the factory system to the cottage industries.
• Bell Work: If you were to have your own business – name 1 golden rule that you would all of your employees to…
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Socialism, Communism and Capitalism
Indu
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onCapitalism:
Free Market System• Definition: Economic system in which
individuals rather than governments control the factors of production
– Factories and Owners v. Workers
– Leader: Adam Smith wrote “The Wealth of Nations” supporting Capitalism
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onCapitalism
• 1. Define Means of Production: Everything used to produce and exchange goods– Land, Railroads, Mines, Factories, Stores,
Banks and Machines
Indu
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on • In Capitalism (Business), who controls the Means of Production? – Owners: own business and get profit
Indu
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onCapitalism
• Role of Government: – Laissez-Faire: Government stays out of
business (let owners control business)
• Class System is necessary and based on multiple factors but people can move between groups
Indu
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on • Who would like Capitalism?– Owners, Rich
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onSocialism
• Because of capitalism, there was a large difference between rich and poor– Some believed that there was a better
way to distribute the wealth evenly so all could benefit
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onSocialism
– Definition: governments own the means of production and operate them for the benefit of all people, rich or poor
– All people have the right to share in the profit ($$ from factories)
– Get rid of profit and competition
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onSocialism
• Leaders: Robert Owen, Jerry Bentham
• Means of Production: Government owns major industries (railroads, heavy industry) but small private ownership of business is allowed
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onSocialism
• Role of Government: Owns and operates major industries; Regulates Economy
• Class System: Classes are more equal
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onSocialism
• Who would like Socialism?– Workers and Middle Class who gain
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onCommunism
– Definition: Government owns the means of production and controls economic planning; believed that violent revolution against owners was necessary
Indu
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onLeader: Karl Marx
• Karl Marx Published Communist Manifesto– “The history of all hitherto existing
society is the history of class struggle”– #2: All issues are the struggle between
bourgeoisie and proletariat– #3:Proletariat: Working Class (have-nots)– #4:Bourgeoisie: Owners (Middle Class)
(haves)
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onCommunism:
• Marx is first believer in ‘Communism’– Each person contributes what he/she can– Each person receives what he/she needs
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onCommunism
• Means of Production: Government or the “Collective People” (workers and everyone else) (Share Profits)
• Role of Government: Owns and operates all business
• Class System: No Classes
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onCommunism
• Who would like Communism?– Lower Working Class and Poor
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onHW (if not finished in class):
• Reading on Capitalism and Communism– The Wealth of Nations by Adam Smith– The Communist Manifesto by Karl Marx
