Objective 7; Compare and contrast the three main economic systems of capitalism, socialism, and communism and their relationship with different types of.

Objective 7Objective 7; ;

Compare and contrast the Compare and contrast the three main economic systems three main economic systems of capitalism, socialism, and of capitalism, socialism, and communism and their communism and their relationship with different types relationship with different types of governments.of governments.

CapitalismCapitalism; Chapter 23; Chapter 23An economic system in which An economic system in which

the factors of production, (land, the factors of production, (land, labor, capital, entrepreneurship), labor, capital, entrepreneurship), are privately owned. are privately owned.

Often called the Free Enterprise Often called the Free Enterprise System.System.

Ownership of capital goods and Ownership of capital goods and investment are private investment are private decisions, not the decisions of decisions, not the decisions of government.government.

Capitalism allows consumers, Capitalism allows consumers, entrepreneurs, and workers entrepreneurs, and workers enjoy freedom of choice.enjoy freedom of choice.

4 Fundamental Factors of4 Fundamental Factors of CapitalismCapitalism;;

1. Private ownership1. Private ownership2. Individual initiative2. Individual initiative3. Profit3. Profit4. Competition4. Competition

SocialismSocialism;;An economic and political An economic and political

philosophy based on the idea philosophy based on the idea that the benefits of economic that the benefits of economic activity should be equitably activity should be equitably distributed throughout a society.distributed throughout a society.

““Fairness” is achieved through Fairness” is achieved through the principle of collective the principle of collective ownership of the factors of ownership of the factors of production and their distribution.production and their distribution.

Socialists reject the idea of Socialists reject the idea of individualism and competition for individualism and competition for profit.profit.

Socialists say real equality Socialists say real equality requires that political equality requires that political equality and economic equality go hand and economic equality go hand in hand.in hand.

They say economic equality can They say economic equality can only come when the public only come when the public controls the centers of economic controls the centers of economic power.power.

In socialist countries the In socialist countries the government owns most of the government owns most of the factors of production. factors of production.

They are “Nationalized”. They are “Nationalized”. Ex; Healthcare, airlinesEx; Healthcare, airlinesThere is some degree of private There is some degree of private

ownership.ownership.Defenders of socialism say that Defenders of socialism say that

it gives workers and citizens it gives workers and citizens more control over their daily more control over their daily lives. lives.

CommunismCommunism;;Communism calls for Communism calls for

collective, or state, ownership collective, or state, ownership of the factors of production.of the factors of production.

Karl Marx and Friedrich Engels Karl Marx and Friedrich Engels set up the basic concepts in set up the basic concepts in TheThe Communist Manifesto, Communist Manifesto, 18481848

The proletariat will use its The proletariat will use its political supremacy to wrest, political supremacy to wrest, by degree, all capital from the by degree, all capital from the bourgeoisie, to centralize all bourgeoisie, to centralize all instruments of production in instruments of production in the hands of the state, i.e., of the hands of the state, i.e., of the proletariat organized as the proletariat organized as the ruling class; and to the ruling class; and to increase the total productive increase the total productive forces as rapidly as possible. forces as rapidly as possible.

Of course, in the beginning, this Of course, in the beginning, this cannot be effected except by cannot be effected except by means of despotic inroads on the means of despotic inroads on the rights of property, and on the rights of property, and on the conditions of bourgeois conditions of bourgeois production; by means of production; by means of measures, therefore, which measures, therefore, which appear economically insufficient appear economically insufficient and untenable, and untenable,

but which, in the course of the but which, in the course of the movement, outstrip movement, outstrip themselves, necessitate themselves, necessitate further inroads upon the old further inroads upon the old social order, and are social order, and are unavoidable as a means of unavoidable as a means of entirely revolutionizing the entirely revolutionizing the mode of production. mode of production.

These measures will, of course, These measures will, of course, be different in different countries. be different in different countries.

Nevertheless, in most advanced Nevertheless, in most advanced countries, the following will be countries, the following will be pretty generally applicable. pretty generally applicable.

1. Abolition of property in land 1. Abolition of property in land and application of all rents of and application of all rents of land to public purposes. land to public purposes.

2. A heavy progressive or 2. A heavy progressive or graduated income taxgraduated income tax..

3. Abolition of all rights of 3. Abolition of all rights of inheritance. inheritance.

4. Confiscation of the property of 4. Confiscation of the property of all emigrants and rebels. all emigrants and rebels.

5. Centralization of credit in the 5. Centralization of credit in the banks of the state, by means of a banks of the state, by means of a national bank with state capital national bank with state capital and an exclusive monopoly. and an exclusive monopoly.

6. Centralization of the means of 6. Centralization of the means of communication and transport in communication and transport in the hands of the state. the hands of the state.

7. Extension of factories and 7. Extension of factories and instruments of production instruments of production owned by the state; the bringing owned by the state; the bringing into cultivation of waste lands, into cultivation of waste lands, and the improvement of the soil and the improvement of the soil generally in accordance with a generally in accordance with a common plan. common plan.

8. Equal obligation of all to work. 8. Equal obligation of all to work. Establishment of industrial Establishment of industrial armies, especially for armies, especially for agriculture. agriculture.

9. Combination of agriculture with 9. Combination of agriculture with manufacturing industries; gradual manufacturing industries; gradual abolition of all the distinction abolition of all the distinction between town and country by a between town and country by a more equablemore equable distribution of the distribution of the populace over the country. populace over the country.

10. Free education for all 10. Free education for all children in public schools. children in public schools. Abolition of children's factory Abolition of children's factory labor in its present form. labor in its present form. Combination of educationCombination of education

Characteristics of Characteristics of CommunismCommunism;;

1. 1. Role of the Communist Role of the Communist PartyParty. .

The party makes all decisions The party makes all decisions regarding the government and regarding the government and economy.economy.

2. 2. Central PlanningCentral Planning – – Government plans the economy in Government plans the economy in

5 yr. segments, known as the Five 5 yr. segments, known as the Five Year Plan.Year Plan.

3. 3. CollectivizationCollectivization – All – All industry and agriculture is run industry and agriculture is run by the government. Millions by the government. Millions died when Soviet Union died when Soviet Union collectivized farms in the collectivized farms in the 1920’s.1920’s.

4. 4. State OwnershipState Ownership – – Government owns all parts of Government owns all parts of the economy. All property, all the economy. All property, all factors of production. factors of production.

Objective 8Objective 8;;Understand key ideas of Understand key ideas of

limited government and the limited government and the rule of law as developed in rule of law as developed in England and exhibited in the England and exhibited in the Magna Carta, Petition of Right, Magna Carta, Petition of Right, and English Bill of Rights.and English Bill of Rights.

Basic Concepts of Basic Concepts of Government in America;Government in America;

Ordered GovernmentOrdered Government – – orderly regulation of the orderly regulation of the relationships between people relationships between people and their government. and their government.

Based on ideas colonists knew Based on ideas colonists knew from England. from England.

Limited GovernmentLimited Government – idea – idea colonists brought from England colonists brought from England that government is not all-that government is not all-powerful. Idea had been part of powerful. Idea had been part of English political philosophy for English political philosophy for over 400 years before Jamestown.over 400 years before Jamestown.

Representative GovernmentRepresentative Government – – idea that government should idea that government should serve the will of the people and serve the will of the people and people should have a voice in people should have a voice in government.government.

English DocumentsEnglish Documents;;Magna CartaMagna Carta – 1215 – aka – 1215 – aka GreatGreat

CharterCharter..Barons were tired of King John’s Barons were tired of King John’s

heavy taxes, wars, and arbitrary heavy taxes, wars, and arbitrary acts. They forced him to sign it at acts. They forced him to sign it at Runnymeade.Runnymeade.

IncludedIncluded;;Trial by jury and due processTrial by jury and due processProtection against arbitrary taking Protection against arbitrary taking

of life, liberty, and property.of life, liberty, and property.

The protections against the The protections against the monarch were originally monarch were originally meant only for the privileged meant only for the privileged but became part of English but became part of English law for everyone over time. law for everyone over time.

*Magna Carta established *Magna Carta established principle that the power of principle that the power of the monarch was NOT the monarch was NOT absoluteabsolute..

Petition of RightPetition of Right;;16281628 – Charles I asked Parliament – Charles I asked Parliament

for money but they refused until for money but they refused until he signed Petition of Right.he signed Petition of Right.

Could no longer imprison or punish Could no longer imprison or punish anyone without judgment of their anyone without judgment of their peers or by the law of the land.peers or by the law of the land.

*Challenged idea of divine *Challenged idea of divine right of kings and declared right of kings and declared monarch must follow law of monarch must follow law of the landthe land..

English Bill of RightsEnglish Bill of Rights;;1688 – William and Mary of 1688 – William and Mary of

Orange (Netherlands) offered the Orange (Netherlands) offered the crown of England known as crown of England known as Glorious Revolution.Glorious Revolution.

1689 – Parliament drew up Bill of 1689 – Parliament drew up Bill of Rights to prevent further abuse Rights to prevent further abuse of power by all future Monarchs.of power by all future Monarchs.

William and Mary forced to sign William and Mary forced to sign it.it.

Included;Included;No standing army during No standing army during

peacetime without consent of peacetime without consent of Parliament.Parliament.

All Parliamentary elections must All Parliamentary elections must be free.be free.

Guarantees of right to fair trial.Guarantees of right to fair trial.Freedom from excessive bail.Freedom from excessive bail.Freedom from cruel and unusual Freedom from cruel and unusual

punishment.punishment.No taxes without consent of No taxes without consent of

Parliament.Parliament.

*These 3 documents were *These 3 documents were where most ideas for the where most ideas for the U.S. Constitution and U.S. Constitution and government originated. government originated. This is what colonists This is what colonists knew and brought with knew and brought with them from England. them from England.

Objective 9Objective 9;;Recognize the role of Recognize the role of British neglect of the British neglect of the colonies in the colonies in the development of self-development of self-government as government as demonstrated by the demonstrated by the Mayflower Compact and Mayflower Compact and the Virginia House of the Virginia House of Burgesses.Burgesses.

13 American colonies were 13 American colonies were established independently established independently over 125 years.over 125 years.

Virginia first – 1607Virginia first – 1607Georgia last – 1733.Georgia last – 1733.All were established out of a All were established out of a

different set of circumstances, different set of circumstances, usually economic endeavors. usually economic endeavors.

All were shaped by their All were shaped by their English origins.English origins.

3 types of colonies;3 types of colonies;11. Royal. Royal – controlled by the – controlled by the

Crown.Crown.Pattern of government gradually Pattern of government gradually

emerged in Royal Colonies;emerged in Royal Colonies;King appointed a governorKing appointed a governorCouncil appointed by the king Council appointed by the king

served as advisors to the served as advisors to the governor would eventually governor would eventually become Upper House of colonial become Upper House of colonial legislatures.legislatures.

Lower House was elected by Lower House was elected by property owners who could property owners who could vote.vote.

Discontent between Royal Discontent between Royal governors and legislatures governors and legislatures caused much resentment that caused much resentment that eventually caused American eventually caused American Revolution, especially the issue Revolution, especially the issue of taxation.of taxation.

2. Proprietary Colonies;2. Proprietary Colonies;3- Maryland, 1632 to Lord 3- Maryland, 1632 to Lord

Baltimore, Delaware, 1682, Baltimore, Delaware, 1682, and Pennsylvannia, 1681, to and Pennsylvannia, 1681, to William PennWilliam Penn

Were organized by a proprietor Were organized by a proprietor who had been given land grant who had been given land grant from King. from King.

Governor appointed by Governor appointed by proprietor.proprietor.

3. Charter Colonies;3. Charter Colonies;Connecticut, 1662, and Rhode Connecticut, 1662, and Rhode

Island, 1663.Island, 1663.Largely self governing. Largely self governing. Governor elected by male Governor elected by male

landowners.landowners.

Mayflower Compact, Nov. 11, Mayflower Compact, Nov. 11, 1620;1620;

Pilgrims had no charter. They Pilgrims had no charter. They landed at Plymouth which was landed at Plymouth which was outside the land controlled by the outside the land controlled by the London Company of Virginia. London Company of Virginia.

It was a social contract where It was a social contract where everyone consented to follow the everyone consented to follow the compacts rules for the sake of compacts rules for the sake of survival.survival.

The government it formed The government it formed derived it’s power from the derived it’s power from the consent of the governed.consent of the governed.

Having undertaken, for the Glory of God and Having undertaken, for the Glory of God and advancement of the Christian Faith and Honour of advancement of the Christian Faith and Honour of our King and Country, a Voyage to plant the First our King and Country, a Voyage to plant the First Colony in the Northern Parts of Colony in the Northern Parts of VirginiaVirginia, do by , do by these presents solemnly and mutually in the these presents solemnly and mutually in the presence of God and one of another, Covenant presence of God and one of another, Covenant and Combine ourselves together into a Civil Body and Combine ourselves together into a Civil Body Politic, for our better ordering and preservation Politic, for our better ordering and preservation and furtherance of the ends aforesaid; and by and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute and frame such virtue hereof to enact, constitute and frame such just and equal Laws, Ordinances, Acts, just and equal Laws, Ordinances, Acts, Constitutions and Offices, from time to time, as Constitutions and Offices, from time to time, as shall be thought most meet and convenient for the shall be thought most meet and convenient for the general good of the Colony, unto which we general good of the Colony, unto which we promise all due submission and obedience. In promise all due submission and obedience. In witness whereof we have hereunder subscribed witness whereof we have hereunder subscribed our names at Cape Cod, the 11th of November, in our names at Cape Cod, the 11th of November, in the year of the reign of our Sovereign Lord King the year of the reign of our Sovereign Lord King James, of James, of EnglandEngland, France and Ireland the , France and Ireland the eighteenth, and of eighteenth, and of ScotlandScotland the fifty-fourth. Anno the fifty-fourth. Anno Domini 1620.Domini 1620.[4][4][[

William Bradford and the William Bradford and the Mayflower CompactMayflower Compact

Captain John SmithCaptain John Smith

Virginia House of BurgessesVirginia House of Burgesses;;July 30, 1619, was the first July 30, 1619, was the first

meeting of the first meeting of the first representative body in the North representative body in the North American English colonies.American English colonies.

Virginia had a Bicameral Virginia had a Bicameral Assembly.Assembly.

The Upper House consisted of the The Upper House consisted of the council appointed by the King to council appointed by the King to advise the Royal Governor.advise the Royal Governor.

The Lower House consisted of The Lower House consisted of people elected by landowners. people elected by landowners. The lower house was called The lower house was called the House of Burgesses.the House of Burgesses.

Parliament took little part in Parliament took little part in the management of the the management of the colonies. colonies.

They were managed mainly by They were managed mainly by the Crown through the the Crown through the Privy Privy CouncilCouncil and the and the Board of Board of TradeTrade in London. in London.

In theory the colonies were In theory the colonies were governed from London.governed from London.

London was 3,000 miles away and it London was 3,000 miles away and it took 2 months to cross the Atlantic.took 2 months to cross the Atlantic.

Therefore, colonists became used to Therefore, colonists became used to a large measure of self-a large measure of self-government.government.

Most legislatures had “Most legislatures had “power of power of the pursethe purse” over the Royal ” over the Royal governors and could force him to do governors and could force him to do what they wanted.what they wanted.

By mid 1700’s the relationship By mid 1700’s the relationship between the colonies and between the colonies and England was virtually Federal in England was virtually Federal in form.form.

Meant the Crown was responsible Meant the Crown was responsible for protection of the colonies and for protection of the colonies and provided monetary system. Also provided monetary system. Also regulated trade.regulated trade.

Other than that, colonies had Other than that, colonies had wide amount of self-rule.wide amount of self-rule.

Very few taxes collected.Very few taxes collected.1760-George III came to power 1760-George III came to power

and it all changed.and it all changed.

King George III at 38King George III at 38

Objective 10Objective 10;;Evaluate the relationship and Evaluate the relationship and

conflicts between the colonies conflicts between the colonies and the British government, and the British government, such as the effects of the such as the effects of the French and Indian War, the French and Indian War, the Stamp Act, the Boston Tea Stamp Act, the Boston Tea Party, and the Intolerable Acts Party, and the Intolerable Acts and examine how they led to and examine how they led to the American Revolution.the American Revolution.

1760 George III becomes King. 1760 George III becomes King. England is in the midst of a England is in the midst of a world war, known as the French world war, known as the French and Indian War in the colonies and Indian War in the colonies and the 7 Years War elsewhere. and the 7 Years War elsewhere.

British government was in British government was in crucial need of money to fund crucial need of money to fund the war.the war.

Parliament began to deal directly Parliament began to deal directly with the colonies in order to with the colonies in order to raise revenue.raise revenue.

British began to enforce already British began to enforce already existing trade regulations and existing trade regulations and imposed new taxes on colonies.imposed new taxes on colonies.

Colonists objected to taxes and Colonists objected to taxes and claimed they were being taxed claimed they were being taxed without representation in without representation in Parliament.Parliament.

Parliament claimed they were Parliament claimed they were “virtually represented” since “virtually represented” since they enjoyed rights of all they enjoyed rights of all Englishmen.Englishmen.

1765 Stamp Act passed by 1765 Stamp Act passed by Parliament.Parliament.

October 1765, 9 colonies sent October 1765, 9 colonies sent delegates to the Stamp Act delegates to the Stamp Act Congress in New York.Congress in New York.

Wrote Wrote Declaration of Rights Declaration of Rights andand GrievancesGrievances and sent it to and sent it to King.King.

*First time colonists joined *First time colonists joined forces and opposed British forces and opposed British government.government.

Stamp ActStamp Act was repealed. was repealed.More laws were passed by More laws were passed by

Parliament to rule Colonies.Parliament to rule Colonies.Colonists organized boycotts of Colonists organized boycotts of

British products. British products. March 5, 1770March 5, 1770 – Boston – Boston

Massacre.Massacre.17721772 - -Committees of Committees of

CorrespondenceCorrespondence created. created. (Samuel Adams) Provided network (Samuel Adams) Provided network for information between anti-for information between anti-British groups.British groups.

Protests continued in colonies.Protests continued in colonies.Dec. 16, 1773 – Boston Tea Dec. 16, 1773 – Boston Tea

Party.Party.Spring 1774Spring 1774 – – First First ContinentalContinental CongressCongress meets meets in Philadelphia in response to in Philadelphia in response to the the Intolerable ActsIntolerable Acts passed passed by Parliament.by Parliament.

Sent another Declaration of Sent another Declaration of Rights to King. Called for more Rights to King. Called for more boycotts of British goods.boycotts of British goods.

May 10, 1775 Second May 10, 1775 Second ContinentalContinental CongressCongress meets. meets.

Each colony sent delegates.Each colony sent delegates.Revolution had already started at Revolution had already started at

Lexington and Concord. Lexington and Concord. *2*2ndnd Congress became first Congress became first government of U.S. for 5 yrs.government of U.S. for 5 yrs.

Raised army and adopted Raised army and adopted Declaration of IndependenceDeclaration of Independence, , July 1776.July 1776.