• Examine the economic systems of Capitalism, Socialism and Communism and how they work

A. CapitalismB. LiberalismC. SocialismD. Communism

1. Four“Economic”Systemsfrom theInd Rev

1. Socio-Economic Pyramid (taxes)

2. Ven Diagram (Gov intervention)

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• Democracy • Dictatorship

• Background…– 1700s during

Enlightenment– More popular in 1800s

• Pioneers? • Principles and

Beliefs?

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Gov

• What do we

see happening in these models?

• Which model would the Capitalist like most?

• Spectrum…

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• What happens to the pyramid, Bill Gates and the Gas Station Worker?

• Demand for goods higher than ever…all classes

• Materialistic culture born (?)• Corporations created

– built with stock-holders• Monopolies (eh) and

Trusts form– What are they?

• Charles

Darwin writes a book in 1859…– On the Origin

of Species• What the main

message in the book?– Natural

Selection– Survival of

Fittest…

• Joseph Schumpeter and Evolutionary Economics (1911)– Macro-economic

equilibrium exists in the free market• This equilibrium is

constantly being destroyed by innovations made by entrepreneurs

– New/Strong companies survive

– Weak/Outdated companies die

Economists applyDarwinism toEconomics…

• Origins and background so far?• Enemy?• Why did it grow during the IR?• Economic and Political Liberalism…

Liberalism

• Created by Jeremy

Bentham!!!!!!!!!!– 1748-1832– Philosopher– Social and Political

Reformer• Abolitionist• anti-death penalty• animal rights• Equal rights for women• physical punishment• prison reform (panopticon)

• laws should be judged

by their “utility”– “Greatest Happiness

Principle”– Largest amount of

pleasure over pain• Goal of a law = greatest

good for the greatest number of people

• Slowly accepted in late 1800s and still used today

• Student of Bentham• On Liberty in 1859

– The Individual should have as much personal liberty as possible

• Freedom of Speech• Women’s Rights• Equal Education• Would believe in the

“Flat Tax” today– But Inheritance Tax too

• What is it (main beliefs)• Who is Socialist today? Where does Socialism

exist the most today?

• Socialists believe Industrial Capitalism is….– Why?

• Socialism says it is the ideal system…why?– looks out for everyone’s

well-being (philosophe?)• Early Socialists

– Robert Owen and Charles Fourier

• The Free Market…what happens to it?– In a Democracy, how does this happen?– In a Dictatorship, how does this happen?

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Gov

• Capitalism? (1)– Just Ownership

• Socialism? (3)– Ownership– Unions– Gov

• In Socialism, is Government on the side of the Ownership or Workers?

• Social Class Pyramid…what happened to it?– Government and laws impact it…how

• Taxes (progressive)– less distance between rich and poor

http://upload.wikimedia.org/wikipedia/commons/7/7d/Food_and_Drug_Administration_logo.svg

• Socialism in Action…• Late 90s, fen-phen was a

popular weight-loss drug. The FDA allowed the drug and then people reported having heart problems from the drug. So the FDA forced the drug off the market.

• Phen-fen is made up of 2 drugs…now Pfizer is remaking the drug with the “good” half of it, and not the bad half that leads to heart problems

• Socialist parties

emerge during 1800s

• Where is it today?• All governments

pass some “Socialist” laws– Liberal Left– Any laws for

working class/workers

– Any laws that hurt business or involve government “touching” the free market

– Environmental laws

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• Socialism can be seen on a spectrum. You can have very little Socialism in your country, or you can have complete Socialism, or something in the middle. On a scale of 0-10, where do you think the US Government/Economy currently exist? Also decide where you want the US Government/Economy to be. Try not to pick #5. Explain why you think so on your class’s blog page.

• Title = Poster Analysis

• What do you see in this poster that you have learned about already…think geometrically

• What is the opinion expressed in this poster?

• Originator

–Karl Marx (1818-1883)• German atheist

banned from academics and journalism

• hated Capitalism– prosperity for few– poverty for many

• early 1840s Marx meets Friedrich Engels (1820-1895)

• Their major work (with recipe)–Communist

Manifesto

• A form of Socialism that follows a storyline that includes DRAMATIC, USUALLY VIOLENT CONFLICT

• Requires a…– Want to guess the

storyline?

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• How should the models look?– Gov-FM model– Socio-economic

pyramid?

Gov

• “Haves” (Oppressors)– own the means of

production– control society and its

wealth (PERSIAGM)– Bourgeois

• “Have Nots” (Oppressed)– working class or

“proletariat”

• A country is Industrialized and Capitalist

• Capitalism will fail (how) and Marx’s system will take over from the chaos

• PES…Marxism is the next step to human progress

• The proletariat unite & overthrow capitalist bourgeois

• “The proletarians have nothing to lose but their chains. They have a world to win. WORKING MEN OF ALL COUTRIES, UNITE!”

• “Dictatorship of the Proletariat”– take over control of

production…– create classless,

communist society– control economics

and politics of the country

• Thoughts?

• In theory, Democracy– no political/gov

struggle– wealth shared by

Proletariat– no private property– Equality – Sounds like which

writer??• In reality,

Dictatorship

• Communism is an economic system that exists with Dictatorships (examples?)– Russian Revolution 1917

• Stalin and etc– China’s Communist

revolution 1940s• Mao Zedong

– Castro in Cuba– Hugo Chavez in

Venezuela?

• Who

likes it?

• Who dislikes it?

• Thought his theory was on natural laws of humans…was it?

• What did not happen?– no misery of proletariat worldwide

• so no world revolution• Proletariat’s conditions improved

ENOUGH by governments (who became….)

– workers did not unite over national borders to wage class warfare• nationalism was stronger…more unity

in country• only local revolutions like USSR, China,

Cuba…for now?

• Communism and Marxism• Forms of Socialism…

– State Socialism vs Market Socialism (China)– Scientific Socialism (Marx and Engels) vs Utopian

Socialism– Reform vs Revolution– Anarchism!!! (No State! Stateless societies instead)– Democratic Socialism– Religious Socialism– Evolutionary Socialism…

• Capitalists vs Socialists vs Marxists