• Examine the economic systems of Capitalism,
Socialism and Communism and how they work
A.
B.
C.
D.
Capitalism
Liberalism
Socialism
Communism
1. Socio-Economic
Pyramid (taxes) 
2. Ven Diagram (Gov
intervention)

• Democracy
• Dictatorship
• Background…
– 1700s during
Enlightenment
– More popular in 1800s
• Pioneers? 
• Principles and
Beliefs?
• What do we
see
happening in
these
models?
• Which model
would the
Capitalist like
most?
• Spectrum…
• 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– Weak/Outdated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 
•
•
•
•
Origins and background so far?
Enemy?
Why did it grow during the IR?
Economic and Political 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?
• 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
• 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
• 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 010, 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 (18181883)
• German atheist
banned from
academics and
journalism
• hated Capitalism
– prosperity for few
– poverty for many
• early 1840s Marx
meets Friedrich
Engels (18201895)
• 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?
• How should the
models look?
– Gov-FM model
– Socio-economic
pyramid? 
• “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