Laissez Faire Economics n Adam Smith Wrote Wealth

Laissez Faire Economics n Adam Smith – Wrote Wealth of Nations n Govt. should not interfere in the free operation of the economy

Capitalism n An economic system based on private ownership and on the investment of money in business ventures in order to make a profit.

Socialism n Socialism → people as a whole rather than private individuals would own and operate the “means of production” n Condemned evils of industrial capitalism – said it caused a gap between rich and poor

The “Scientific Socialism” of Karl Marx n Karl Marx – German philosopher who wrote The Communist Manifesto n Marxism: n n Economics was the driving force in history Course of history was the “history of class struggles” between the “haves” (bourgeoisie) and the “have nots” (proletariat – working class). He believed the proletariat would beat the middle class and then take control of the means of production and set up a classless communist society where wealth and power would be equally shared. Hated capitalism → felt it benefited a few and brought poverty to many

Communism n An economic system in which all means of production – land, mines, factories, railroads, and businesses- are owned by the government, private property does not exist and all goods and services are shared equally.

Capitalism, Socialism and Communism We have just discussed the many different responses to the hardships of the Industrial Revolution… You will see a list of some of the different economic theories discussed or practiced during this time period.

Read through the following descriptions and match one of the 3 economic theories with the proper description By: Bill Saurer A) You have two cows. You keep one and give one to your neighbor. B) You have two cows. The government takes both cows, puts them on a commercial farm and provides you with the milk. C) You have two cows. You sell one and buy a bull.

VIDEO CONTINUATION

INVENTIONS!!!

James Watt n Steam Engine (1769) Used coal rather than water. Powered machines like the cotton mills it will lead to the factory system allowed factories to be built wherever and not just near a water source

Eli Whitney n Cotton Gin (1793) sped up removal of seeds from the raw cotton fiber this will make cotton plantations increase their use of slave labor

Steamboat • In 1807, Robert Fulton designed a steam engine for a steamboat that could move against the current of a river or against the wind. • The steamboat created more opportunities for trade and transportation on rivers.

The Telegraph • In 1837, the telegraph was invented by Samuel Morse. • This machine sent long and short pulses of electricity along a wire. • With the telegraph, it took only seconds to communicate with another city. • The invention of the steamboat and telegraph brought the people of the nation closer to each other.

Pitch Your Own Invention • Your task is to pitch a new invention to Invent America, one the largest invention firms in the US – Think about the inventions that make your life easier (cars, cell phones, microwaves, etc. ) – What is something that you would invent to make people’s lives easier? How would this invention affect society? – Think about transportation, technology, school, and beyond! • Pitch must be 5 sentences or more. • Be creative and persuasive!!!