Bellringer: 1/11 and 1/12
• Pick up the paper by the door.
• Go to the URL below and fill out the course
recommendation survey for next year:
– Tinyurl.com/AllenWorld2CR
• Update your ToC:
– 91: Notes – 19th Century Econ. Systems
– 92: Economics Game Worksheet
– 93: Study Guide – Unification/Industrial Rev.
• Write down your HW:
– Finish your study guide
– Study for your Unification/Industrial Rev. quest NEXT CLASS!
Capitalism, Communism,
and Socialism: What do you
think of?
Capitalism, Communism,
and Socialism
So what is an economic system?
• An economic system is a system of production
and exchange of goods and services as well as
allocation of resources in a society.
• Three major economic systems during the
Industrial Revolution:
– 1. Capitalism
– 2. Communism
– 3. Socialism
https://www.youtube.com/watch?
v=cH4j5NiJAiE
Economics Game:
Capitalism, Communism, and Socialism
• Phase 1:
–Everyone needs to find a partner. You
can only work in groups of 2 for this.
Turn to the people beside you to find a
partner.
Economics Game:
Capitalism, Communism, and Socialism
• Phase 1:
–Everyone will be given a certain
number of Starbursts. DO NOT EAT
THEM (YET!)!!!
Number of Starbursts
Your Social Class
5-6
“Upper class”
3-4
“Middle class”
1-2
“Lower class”
Economics Game:
Capitalism, Communism, and Socialism
• Phase 1:
–With your partner, you will play “Rock,
Paper, Scissors” until time is called (or
until one of you run out of Starbursts).
If this happens, please wait quietly
until time is called.
Economics Game:
Capitalism, Communism, and Socialism
• Phase 1:
–STOP!
–Count your candy. See which partner
has more candy.
–Question: Do you have more candy
than you started with? Do you have
less candy than you started with?
What is capitalism?
• Economic system.
• Believes in individual ownership and
competition.
• Theory: When everyone is selfish and
concerned with personal profit, everyone
will benefit.
• Adam Smith = “the” capitalist
– Wrote Wealth of Nations: felt capitalism good for
society = THE BEST ECONOMIC SYSTEM!
What’s good about capitalism?
• Freedom, choice.
• You can work wherever, buy whatever, and
pretty much do whatever.
• If you’re successful, you can be very successful
(Think Bill Gates)
• “Survival of the fittest”  only the strong
survive in capitalism!
What’s bad about capitalism?
• No “safety net.”
– If you fail, you FAIL! The government is not going
to save you.
• If you’re unsuccessful, you can be very
unsuccessful. Think about the poor.
• Big gap between rich/poor.
Economics Game:
Capitalism, Communism, and Socialism
• Phase 2:
–Divide up your candy amongst you and
your partner so you both have the
same amount (or as close to equal as
possible).
–Play “Rock, Paper, Scissors” for 2-3
minutes or until one person has all the
candy (if that happens).
Communism/Socialism: What’s the difference?
• Socialism is the stage between Capitalism
and Communism.
• Nationalizes the means of production (i.e.
corporations, banks, raw materials, etc.) =
gives control of them to the government
• BUT: NOT all are equal!
– People are paid wages based on several factors
(social need, difficulty of job, amount of schooling
required, etc.), so not everyone will make the
same wage.
Economics Game:
Capitalism, Communism, and Socialism
• Phase 3:
–Turn your attention to Ms. Allen and
Ms. Borg.
–Pool all your candy (between you and
your partner) together into one pile.
What is communism?
• Economic system.
• Believes in collective (group) ownership and a
planned economy (government makes decisions).
• Theory: Everyone pools their resources and labor to
evenly distribute everything.
– Everyone gets an EQUAL amount of everything, regardless
of how hard you work or don’t work!
• Karl Marx = “the” communist
– Wrote The Communist Manifesto with Engels – about class
struggle, problems of capitalism
– Wrote Das Kapital: 1867, critique of capitalism
– Both written with Engels
A Closer Look at the Communist
Manifesto:
• MAIN PROBLEM: Class struggle (between the haves
and have-nots)
• Class struggle leads to the dictatorship of the
proletariat (middle class)
• Dictatorship of the proletariat = requires the
transition to the abolition (ending) of all classes, the
creation of a classless society
• Supported:
– Abolition of property, heavy taxes, central banking
– State-controlled communication, transportation, and
education of children
What’s good about communism?
• Security, basic needs met.
• Everyone would have a job, house, health
care, etc.
– NO SURVIVAL OF THE FITTEST PROBLEM HERE
(ideally at least)
• Who would support this idea?
What’s bad about communism?
• Lack of choice
• No reward for being a better worker, slackers
get no punishment (lack of incentives and
consequences).
• Everyone expected to be the same (lack of
focus on individual growth).
Marxism
Marx and Engels
studied the history
of the world’s
economies
Capitalism
Feudalism
Basic
Communism
Socialism
Communism!!!
They believed
they discovered
an inevitable
pattern
How’s this related to the Industrial
Revolution?
• Adam Smith’s capitalism dominated the IRLed to bad working conditions.
• Karl Marx wrote about communism as
solution to capitalism’s problems.
– Marx said the workers would get fed up and
overthrow their governments and start
communism.
After simulation:
• Answer the questions on your
simulation sheet.
• Tinyurl.com/AllenWorld2CR
• Begin working on your study guide
for your Unification/Industrial
Revolution quest NEXT CLASS!