examine the economic systems of capitalism, socialism and communism and how they work
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Examine the economic systems of Capitalism, Socialism and Communism and how they work. Day 71-75 Objectives. 1. Four “Economic” Systems from the Ind Rev. Capitalism Liberalism Socialism Communism. Free Market. Gov. 2 ways to look at 3 of the economic systems. - PowerPoint PPT PresentationTRANSCRIPT
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• Examine the economic systems of Capitalism, Socialism and Communism and how they work
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A. CapitalismB. LiberalismC. SocialismD. Communism
1. Four“Economic”Systemsfrom theInd Rev
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1. Socio-Economic Pyramid (taxes)
2. Ven Diagram (Gov intervention)
FreeMarket
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• Democracy • Dictatorship
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• Background…– 1700s during
Enlightenment– More popular in 1800s
• Pioneers? • Principles and
Beliefs?
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FreeMarket
Gov
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• What do we
see happening in these models?
• Which model would the Capitalist like most?
• Spectrum…
FreeMarket
FreeMarket
FreeMarket
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• What happens to the pyramid, Bill Gates and the Gas Station Worker?
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• 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?
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• Charles
Darwin writes a book in 1859…– On the Origin
of Species• What the main
message in the book?– Natural
Selection– Survival of
Fittest…
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• 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– Weak/Outdated companies die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…
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• Origins and background so far?• Enemy?• Why did it grow during the IR?• Economic and Political Liberalism…
Liberalism
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• 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)
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• 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
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• 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
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• What is it (main beliefs)• Who is Socialist today? Where does Socialism
exist the most today?
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• 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
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• The Free Market…what happens to it?– In a Democracy, how does this happen?– In a Dictatorship, how does this happen?
FreeMarket
Gov
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• Capitalism? (1)– Just Ownership
• Socialism? (3)– Ownership– Unions– Gov
• In Socialism, is Government on the side of the Ownership or Workers?
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• Social Class Pyramid…what happened to it?– Government and laws impact it…how
• Taxes (progressive)– less distance between rich and poor
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• 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
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• 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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FreeMarket
• 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.
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• 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?
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• Originator
–Karl Marx (1818-1883)• German atheist
banned from academics and journalism
• hated Capitalism– prosperity for few– poverty for many
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• early 1840s Marx meets Friedrich Engels (1820-1895)
• Their major work (with recipe)–Communist
Manifesto
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• 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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FreeMarket
• How should the models look?– Gov-FM model– Socio-economic
pyramid?
Gov
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• “Haves” (Oppressors)– own the means of
production– control society and its
wealth (PERSIAGM)– Bourgeois
• “Have Nots” (Oppressed)– working class or
“proletariat”
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• 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
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• The proletariat unite & overthrow capitalist bourgeois
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• “The proletarians have nothing to lose but their chains. They have a world to win. WORKING MEN OF ALL COUTRIES, UNITE!”
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• “Dictatorship of the Proletariat”– take over control of
production…– create classless,
communist society– control economics
and politics of the country
• Thoughts?
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• In theory, Democracy– no political/gov
struggle– wealth shared by
Proletariat– no private property– Equality – Sounds like which
writer??• In reality,
Dictatorship
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• 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?
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• Who
likes it?
• Who dislikes it?
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• 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?
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• 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