ADAM SMITH 1723 1790 FATHER OF MODERN CAPITALISM

ADAM SMITH (1723 – 1790) FATHER OF MODERN CAPITALISM WROTE THE WEALTH OF NATIONS ARGUED THAT IF PEOPLE FOLLOWED THEIR OWN SELF INTEREST THERE WOULD BE HARMONY

CAPITALISM Economic system based on private ownership and the profit motive based on laissez- faire economics French for “let do” or “let the people do as they please” allows owners of industry and business to control working conditions favors a free market unregulated by the government

COMMUNISM KARL MARX wrote the Communist Manifesto (1848) with Friedrich Engels Predicted that eventually the capitalist system would be destroyed

Marxism/Communism Society develops through class struggle A conflict between ruling classes (known as the bourgeoisie) that control the means of production and working classes (known as the proletariat) that work on these means by selling their labor for wages Capitalism created great tension in society, according to Marx The working class or have nots would rise up against the haves, take over the means of production and ultimately create a classless society!

THOMAS MALTHUS Supporter of laissez-faire ARGUED THAT POPULATION TENDED TO INCREASE MORE RAPIDLY THAN FOOD SUPPLY BELIEVED MISERY AND POVERTY WERE INEVITABLE CONSEQUENCES OF POPULATION GROWTH

DAVID RICARDO THEORY DESCRIBED AS THE ‘IRON LAW OF WAGES’ BELIEVED WAGES WOULD STAY LOW AS LONG AS THE POPULATION CONTINUED TO INCREASE

UTILITARIANISM JEREMY BENTHAM SAID POPLE SHOULD JUDGE IDEAS, INSTITUTIONS, AND ACTIONS ON THE BASIS OF THEIR UTILITY, OR USEFULNESS

UTILITARIANISM JOHN STUART MILL QUESTIONED UNREGULATED CAPITALISM MILL CALLED FOR LEGAL REFORMS SUCH AS WOMEN’S SUFFRAGE GREATEST HAPPINESS FOR THE GREATEST NUMBER

UTOPIANISM FACTORY OWNER WHO BEGAN EXPERIMENTAL FACTORY TOWNS WHERE WORKERS WERE WELL PROVIDED FOR NEW LANARK, SCOTLAND WAS HIS FIRST

SOCIALISM CHARLES FOURIER, CALLED FOR THE FACTORS OF PRODUCTION TO BE OWNED BY THE GOVERNMENT AND RUN FOR THE BENEFIT OF ALL BELIEVED THE GOVERNMENT SHOULD PLAN THE ECONOMY