2. What is capitalism?
• investing capital with the specific purpose of
making a profit
• production = what people want = market
forces
• emphasis on the individual
• competition is important
• wide gaps in social classes
3. How are prices determined?
• labor
• materials
• demand
• quantity
4. Socialism: What is it?
• social and economic system
• goal: success for everyone
• production = what people need
• work to eliminate social classes
• How is that done?
• pro modernization, but without competition
5. Karl Marx
• co-wrote The Communist
Manifesto in 1848
• condemned exploitation
• extremely poor
• atheist
• free education for all
6. Friedrich Engels
• co-wrote The Communist
Manifesto
• wrote Conditions of the Working
Class in England (1848)
• son of a wealthy factory owner
• helped support Marx
7. The Communist Manifesto
• workers must unite!
• take over “means of
production”
• redistribute wealth
• end social classes
• did not have a big impact in the
19th c., but that changed in 1917
8. Socialism vs Communism
• working to end social • NO social classes
classes (smaller gaps)
• government controls ALL
• government controls production = command
some production economy
• some private property • NO private property
• True communism has
NEVER EXISTED
9. Worker Responses
• form unions
• skilled vs unskilled
• “closed” shops
• *collective bargaining*
12. Evaluating the Industrial Revolution
• PROS • CONS
• cheaper products • exploitation/
dehumanization of workers
• eventually, higher standard
of living • growth of slums
• stable pay (middle class) • minimum wage
• increased efficiency
• new technology can improve
life (phones, cars,
• damage to environment
and people
computers)