Industrialization and the Economic Response

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Industrialization and the Economic Response
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Economic Spectrum
Capitalism private ownership of business social
darwinism
Communism government ownership of businesses and
means of production
Socialism
Is a combination of both capitalism and communism
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Capitalism

• Private ownership of industry
• Bill Gates owns Microsoft
• Freedom of competition
• Microsoft competes with IBM
• Goal is profit
• Microsoft is winning
• Example United States
• Problems?????
• Response????

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One solution to problems of capitalism is
communism

• Marx and Engels wrote about a better way to do
  things and come up with communism (mid to late
  1800s)
• They believed that capitalists (bourgeoisie) and
  workers (proletariat) struggle over wealth. Marx
  believed that the capitalists would never
  voluntarily share wealth.
• Workers Revolt Dictatorship of the Proletariat
• Proletariat carries out plan to overtake means of
  production and government, which leads to

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Theoretical Communism

• Means of production owned by the people and
  distributed evenly
• Government dissolves because it is no longer
  needed.
• Classless society where no competition exists
  because all needs are met.
• Problems?????

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Practical Communism

• Tourist in communist country buys lunch for .48.
  It was bad bratwurst and watered down Kool-aid,
  but basic needs were met. (Income distributed
  evenly)
• It begins to rain and the same tourist wants to
  buy an umbrella. The umbrella costs 53 because
  it is considered a luxury.
• What class of people would benefit from this
  scenario?

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Compromise Socialism

• Major means of production owned and distributed
  by government
• Socialized medicine in England and France Trains
  in France owned by government
• Government determines needs of people
• Is socialized medicine good or bad?
• Good provides healthcare for all citizens
• Bad Quality and timeliness of treatment might
  suffer
• Government plans the economy
• Citizens in socialized countries pay much higher
  taxes than we do in the U.S.
• Problems?????