Communism

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Government did keep a laissez-faire attitude.

• The U.S. government followed Adam Smith to the
  letter.

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We were a nation of entrepreneurs.

• Andrew Carnegie - founder of U.S. Steel.
• Founder of libraries.

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But there were problems...

• Civil rights abuses.
• Native American abuses.
• Ku Klux Klan.

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Problems of Monopolies

• Higher prices and lower quality.

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Types of Monopolies

• Natural
• Geographic
• Technological (Jack and the Beanstalk)
• PREDATORY

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Communism

• Founded by Karl Marx in 1848.
• Wrote THE COMMUNIST MANIFESTO
• All history is a dialectic struggle between the
  rich and poor.

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Communism Marxism Bolshevism Command Economy

• Borgeoisie v. Proletariat war.
• Proletarian utopia
• No private property
• Equality
• Justice

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Governments Role

• Government would whither on the vine as
  unneeded.
• Govt. is to define who owns what and punish those
  who take.

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BUT

• In reality, government has to be in complete
  control, owning all the resources and allotting
  them out according to peoples needs.
• Command Economy

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Phrases from the Communist Manifesto

• From each according to his ability. To each
  according to his need.
• Religion is the opiate of the masses.

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Types of Communists

• Pacifist
• Violent
• Socialist where govt. is used to control the
  excesses of capitalism.

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Socialism

• The government owns some resources and people own
  the rest.
• France Govt. owns public necessities.
• Denmark, Sweden, Norway Cradle to Grave
  socialism.
• U.S. Limited socialism. Mixed economy.

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Cradle to Grave Socialism

• Sweden v. US
• Avg. Life expectancy
• 77/82 74/80
• Poverty Rate
• 4 / 12.7
• Literacy Rate
• 99 97
• Crime Rate
• 107 / 114

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Cradle to Grave Socialism

• Opportunity Costs
• TAXES
• 52 / 36

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Command Economies TodayCuba

• Life expectancy
• 74/79 74/80
• Income
• 2,100 36,300

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Command Economies TodayNorth Korea

• Life Expectancy
• NA
• Income
• NA
• Poverty Rate
• NA
• 3 million have starved to death since 1997.