Capitalism

							Capitalism
    Characteristics of
      Capitalism
Land and capital are
privately owned. (They
are not owned by the
government.)
 Buyers and sellers
 interact in markets.
 Everyone is free to
 pursue their own self-
 interests.
     The Individual People

Answer   the basic economic
 questions
Products are made and
 prices are determined based
 on SUPPLY AND
 DEMAND.
           Laissez-Faire

 “Hands   off
  government”
 The government
  should not be
  involved
  regulating the
  economy
   THEORY:
Minimal government
involvement is
required.
Competition will
regulate the economy.
Practice:
 Government
  regulation does exist in
  most capitalist
  economies today.
  US   example: Bailout Bill
The Industrial Revolution
     Adam Smith
 Scottish Philosopher
 Wrote Wealth of
 Nations
 Examined how a market
 system worked
 How producers decide
 what to make
How consumers decide
 what to purchase
Thought that a
combination of self-
interest, private
property, and
competition was best
for society.
Karl Marx
       German
       Philosopher

       Promoted
       “scientific
       socialism”
            Marx and others….
   Thought that capitalism was divided between
    the “haves” and the “have-nots”
   The “have-nots” were the proletariat (working
    class.
   Marx felt the proletariat would lead a
    revolution against Capitalism
   Marx and Engles wrote a pamphlet called the
    Communist Manifesto