03. capitalism, socialism, communism (1)

8/3/2019 03. Capitalism, Socialism, Communism (1)

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Capitalism,Capitalism,Socialism, andSocialism, and

CommunismCommunism


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CapitalismCapitalismIt is not from the benevolence of theIt is not from the benevolence of the

butcher, the brewer, or the baker that webutcher, the brewer, or the baker that weexpect our dinner, but from their regard toexpect our dinner, but from their regard to

their own interest.their own interest. -- SmithSmith


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CapitalismCapitalismCapitalismCapitalism an economican economic

system based onsystem based on privateprivate

ownership and on theownership and on theinvestment of money ininvestment of money inbusiness ventures in order tobusiness ventures in order tomake amake a profitprofit..


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CapitalismCapitalism

Adam SmithAdam Smith

University professor

University professor

in Scotlandin Scotland

Supported CapitalismSupported Capitalism

Wrote The Wealth of NationsWrote The Wealth of Nations


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CapitalismCapitalismIdeas:Ideas:Businesses compete withBusinesses compete with

each other for theeach other for theconsumers money.consumers money.Each business tries toEach business tries to

provide goods and servicesprovide goods and servicesthat arethat are betterbetter andand lesslessexpensiveexpensive than theirthan theircompetition.competition.


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CapitalismCapitalismA market economy aims toA market economy aims toproduce theproduce the bestbest goodsgoods atat

thethe lowest prices.lowest prices.Supply and DemandSupply and Demand


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Supply and Demand


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CapitalismCapitalismGovernment should notGovernment should notinterfere in the economy.interfere in the economy.

Laissez faireLaissez faire


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CapitalismCapitalismLaissez faireLaissez faire letting ownersletting ownersof industry and business setof industry and business set

working conditions withoutworking conditions withoutinterferenceinterference

No government regulations,No government regulations,such as minimum wage lawssuch as minimum wage laws


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CapitalismCapitalism

Positive Effects:Positive Effects:

Competition led to progressCompetition led to progress

Negative Effects:Negative Effects:

Unequal distribution ofUnequal distribution of

wealth led to social unrestwealth led to social unrest


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SocialismSocialism

From each according to his/herability, to each according to

his/her work."


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SocialismSocialism

SocialismSocialism an economican economicsystem in which thesystem in which the factors offactors of

productionproduction are owned by theare owned by thepublicpublic and operate for theand operate for thewelfare of all.welfare of all.


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SocialismSocialism

Government activelyGovernment activelyregulates the economyregulates the economy

Controls major industries andControls major industries andresources.resources.


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CommunismCommunismThe worker of the world hasThe worker of the world has

nothing to lose, but their chains,nothing to lose, but their chains,workers of the world unite.workers of the world unite. -- MarxMarx

From each according to his/her ability,

to each according to his/her need."


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CommunismCommunism

CommunismCommunism an economican economicsystem in whichsystem in which allall means ofmeans of

production are owned by theproduction are owned by thepeople,people, private property doesprivate property doesnot existnot exist, and all, and all goods andgoods andservices are shared equallyservices are shared equally..


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CommunismCommunism

Karl MarxKarl Marx

German journalistGerman journalist

Radical SocialistRadical Socialist

Wrote The CommunistWrote The CommunistManifestoManifesto


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CommunismCommunism

Friedrich EngelsFriedrich Engels

Son of a wealthy GermanSon of a wealthy Germantextile entrepreneurtextile entrepreneur

Radical SocialistRadical Socialist

CoCo--Wrote The CommunistWrote The CommunistManifesto and DasManifesto and Das

CapitalCapital


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CommunismCommunism

In many ways, CommunismIn many ways, Communismwas a reaction to thewas a reaction to the

Industrial Revolution andIndustrial Revolution andCapitalismCapitalism


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CommunismCommunism

The Industrial RevolutionThe Industrial Revolutionintensified class struggleintensified class struggle

(rich vs. poor)(rich vs. poor)

Haves take advantage ofHaves take advantage of

HaveHave--Nots (proletariat)Nots (proletariat)


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CommunismCommunism

Workers are exploited byWorkers are exploited byemployersemployers

The labor of workers profitsThe labor of workers profitsemployersemployers


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CommunismCommunism

Marx and Engels called forMarx and Engels called forworkers of the world to uniteworkers of the world to unite

and overthrow the rule of theand overthrow the rule of therich.rich.

Wealth would be redistributedWealth would be redistributed

Classes and private propertyClasses and private propertywould cease to existwould cease to exist

03. capitalism, socialism, communism (1)

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