Modern History 112 Moncton High, Mr. Binet

THE INDUSTRIAL REVOLUTION Capitalism v. Socialism

CAPITALISM

The principles of capitalism were developed over time and influenced by writers such as Adam Smith (The Wealth of Nations, “The Invisible Hand of the Market”). Capitalist ideas became more popular during the Industrial Revolution as trade increased throughout the world.

CAPITALISM

Some of the key principles and ideals of capitalist theories include: • Privately owned businesses are better than government owned business.

• The market as the regulator of the economy.

• A free market economy produces more growth.

• Supply and demand determines the production and cost of goods.

• Free trade is preferable to taxes and tariffs.

• Governments should adopt the policy of laissez-faire; governments should limit their power to defence, police, justice and public projects.

SUPPLY AND DEMAND

CAPITALISM, DOES IT WORK?

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Do you believe in the tenants of Capitalism?

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Is this the best ideology?

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How does it play out in theory and in practice?

SOCIALISM

Socialism is an economic and political system that places more value on common property than on private property.

• Socialism was a reaction to the social consequences of the Industrial Revolution of the 19 th Century and the economic liberalism that accompanied that period.

• Karl Marx is considered the father of scientific socialism; his book “The Communist Party Manifesto” proposes the revolution of the proletariat (workers/working class) over the bourgeoisies (owners/ruling class).

• Socialism supports the abolition of social classes.

SOCIALISM

• The union movement was also influenced by socialist ideas.

• Communism is radical socialism; it is the complete control of the economy by the state (government) and private enterprise is not allowed. • Moderate socialism exists in Canada in the form of social programs such as Medicare, pensions, social assistance, unemployment benefits...)

YOUR TURN

• Pretend you are a modern day philosopher, political scientist, economist and are running for president or prime minster of a country… • What ideology would you argue is the best (any, both, a different one?) • Where have we “gone wrong” in North America and the western world?