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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
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