Industrial Theorists & Scientists

How Economics & Technology Entered into the Modern World

Economic Theories

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems. What is economics?

Economic Theories

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems. What is economics? The study of production,

distribution, and consumption of goods and services.▪ What does “production” mean? ▪ What does “distribution” mean? ▪ What does “consumption” mean? ▪ What does “market” mean?

Economic Theories

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems. What is economics? The study of production,

distribution, and consumption of goods and services.▪ What does “production” mean? Supply, producers.▪ What does “distribution” mean? Sell, transfer.▪ What does “consumption” mean? Demand,

consumers.▪ What does “market” mean? Place where goods &

services are exchanged.

Economic Theories

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems. What is economics? The study of production,

distribution, and consumption of goods and services.▪ What does “production” mean? Supply, producers.▪ What does “distribution” mean? Sell, transfer.▪ What does “consumption” mean? Demand, consumers.▪ What does “market” mean? Place where goods &

services are exchanged.▪ Markets can be local, state, regional, national, international,

or global; physical or electronic.

Economic Theories

2. Each economy is governed by an economic system: Way to organize an economy (resources,

goods, & services) to support a country’s needs.

Economic Theories

2. Each economy is governed by an economic system: Way to organize an economy (resources, goods,

& services) to support a country’s needs. Economic systems come in many different

forms; however, most can be defined through the degree of GOV control in the economy.▪ Every country’s GOV has a degree of control in the

economy, how much they regulate or involve themselves in the market.

▪ No stable or democratic country has either zero control or total control.

Economic Theories

On one side of the spectrum, GOV has a limited role in the economy.

This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.?

Economic Theories

On one side of the spectrum, GOV has a limited role in the economy.

This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.?▪ Supply/Demand are Market Forces (Invisible Hand).▪ Free Markets are free from GOV influence.

Economic Theories

On one side of the spectrum, GOV has a limited role in the economy.

This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.?▪ Supply/Demand are Market Forces (Invisible Hand).▪ Free Markets are free from GOV influence.

On the other side of the spectrum, GOV has a major role in the economy.

This is called a Command Economy (Market): GOV controls (commands) all aspects of the economy. Ex.?

Economic Theories

What are the advantages of a Command Economy?

Economic Theories

What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.

What are the disadvantages of a Command Economy?

Economic Theories

What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.

What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.

What are the advantages of a Market Economy?

Economic Theories

What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.

What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.

What are the advantages of a Market Economy? People own property & skilled workers make more money.

What are the disadvantages of a Market Economy?

Economic Theories

What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.

What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.

What are the advantages of a Market Economy? People own property & skilled workers make more money.

What are the disadvantages of a Market Economy? Unfair to people w/o skills/capital & no safety net during recessions. These two types of economies soon produced three

economic systems that are still used today.

Economic Theories

3. The 1st example of the economic systems born during Industrialization is Capitalism. Examples? An economic system where individuals own

the means of production & Supply/Demand determine prices, wages, & production.

Economic Theories

3. The 1st example of the economic systems born during Industrialization is Capitalism. Examples? An economic system where individuals own

the means of production & Supply/Demand determine prices, wages, & production.▪ What are “means of production”? Factories,

businesses, banks, farms, & utilities.▪ Capitalism is based around earning capital

(money/profit).

Economic Theories

3. The 1st example of the economic systems born during Industrialization is Capitalism. Examples? An economic system where individuals own the

means of production & Supply/Demand determine prices, wages, & production.▪ What are “means of production”? Factories, businesses,

banks, farms, & utilities.▪ Capitalism is based around earning capital (money/profit).▪ Capitalism allows individuals to be creative to earn

capital.▪ Capitalism favors those w/ money & provides little safety

net for those w/o it.

Economic Theories

The next economic system is based around another group of people, really those that have not. Which Class would have been completely

supportive of Capitalism? Why? Which Class would have suffered most under

Capitalism? Why? If individuals will not improve the lives of their

workers, then who will do it? Capitalism is less GOV control while the next

one is all about it.

Economic Theories

4. The 2nd example of the economic systems born during Industrialization is Socialism. Examples? An economic system where the GOV owns the

means of production & redistributes wealth to ensure equality & fairness.

Economic Theories

4. The 2nd example of the economic systems born during Industrialization is Socialism. Examples? An economic system where the GOV owns the

means of production & redistributes wealth to ensure equality & fairness.▪ What is “redistribution of wealth”? Dividing out the

wealth equally to those without.▪ Socialism is based around providing welfare for

society.

Economic Theories

4. The 2nd example of the economic systems born during Industrialization is Socialism. Examples? An economic system where the GOV owns the

means of production & redistributes wealth to ensure equality & fairness.▪ What is “redistribution of wealth”? Dividing out the

wealth equally to those without.▪ Socialism is based around providing welfare for

society.▪ Socialism allows for more taxes on the wealthy to pay

for welfare programs.▪ Socialism favors those who w/o enough money.

Economic Theories

5. Socialism comes in two modern day forms. Reform Socialism: where politicians work w/

GOV to reform society & create welfare services.▪ This is very common Europe & North America.

Economic Theories

5. Socialism comes in two modern day forms. Reform Socialism: where politicians work w/

GOV to reform society & create welfare services.▪ This is very common Europe & North America.

Communism: where revolutionaries overthrow GOV to create a new society w/ total GOV control.▪ This was common Russia & is still seen in Cuba,

North Korea, & China.

Economic Theories

5. Socialism comes in two modern day forms. Reform Socialism: where politicians work w/

GOV to reform society & create welfare services.▪ This is very common Europe & North America.

Communism: where revolutionaries overthrow GOV to create a new society w/ total GOV control.▪ This was common Russia & is still seen in Cuba, North

Korea, & China.▪ Both forms believe the Working Class is exploited by

the wealthy & want a fairer & equal society.▪ One tries to end this via reform while the other w/

violence.

Economic Theories

6. The 3rd example of the economic systems created during Industrialization is a Mixed Economy. Ex.? An economic system where individuals own the MOP,

but GOV provides basic welfare services for society.▪ Mixed Economies are the most common type of economy

seen.▪ The Private & Public Sector coexist w/ smaller industries

privatized & larger one nationalized (medicine, transportation, fuel).

▪ A completely Capitalism or Socialist economy has never lasted very long as there are major conflicts between the people & GOV. Think back to the lessons we have learned about change & extremes.

Scientists & Inventors

Your next assignment is to use your book to fill out the significance of the figures below.

Underneath each figure is the Pg. number where you will find information about him/her.

You will be working by yourself & quietly; we will go over this organizer in 30 minutes!

Let’s do the first one together to make sure you understand what I am expecting!