Mixed Economic SystemsMs. Sebastianelli

Academic World History 10

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“Pure” Economic Systems

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Capitalism Who owns the

production resources? Who makes the decisions?

Who was a founding thinker? What book(s) did he write?

Adam Smith Wrote The

Wealth of Nations

Introduced the idea of “the invisible hand”

Laissez-faire economics

Other laissez-faire economists: David Ricardo

Called capitalism“The Dismal Science”

“The Iron Law of Wages” – raising wages would only cover cost of necessities

Thomas Malthus: Predicted population

increase would grow faster than food production (he was wrong… at that time)

Urged population control: fewer children, no handouts, no vaccinations

Which countries are capitalist?

What are some of the strengths of capitalism?

What are its weaknesses?

The Middle

You have two cows…You sell one and

buy a bull!

New ways of thinking emerge…Jeremy Bentham

Utilitarianism:

The greatest happiness for the greatest number

John Stuart Mill “The only purpose

for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others.”

Robert Owen – a Utopian

Communism Who owns the production resources?

Who makes the decisions?

Who were the founding thinkers? What book did they write?

Karl Marx, continued… Bourgeoisie

(aka: the “haves”) Proletariat (aka: the “have-nots”)

Communist Party (get it?)

Which countries follow this system?

What are some of the strengths?

What are its weaknesses?

You have two cows… The government takes them and gives

you the milk.

Socialism Who makes the decisions? Who owns

the resources?› Some things are owned by the government

(examples?)› Some things are owned by individuals

(examples?)

Who are the founding thinkers?

What countries are socialist?

What are its strengths?

What are its weaknesses?

You have two cows…The government takes one and gives it to

your neighbor.