1. Ch.19, sec 4
NEW WAYS OF THINKING

2. LAISSEZ-FAIRE ECONOMICS
 “hands off”
 Govt. should not
interfere in economy
 AKA Capitalism
 Adam Smith- The
Wealth of Nations
 free market
 No regulation- more
good at lower prices
 Make goods more
affordable

4. MORE LAISSEZ-FAIRE GUYS
 Thomas Malthus
 Population would outgrow
food supply
 Believed in nature’s “natural”
checks on population
 Thankfully, he was wrong
 David Ricardo
 Write “Iron Law of Wages”
 Did not believe in government
help for the poor

5. UTILITARIANISM
 Goal of society should be
the greatest happiness
for the greatest number
of citizens possible
 Jeremy Bentham
 Laws should be judged on
their utility
 Believed in individual
freedom, but the govt.
should get involved in
some circumstances.

6. SOCIALISM
 People as a whole (not individuals) own the
means of production
 Utopians-
 Believed in society where everyone works and
shares equally- no rich and poor
 Seen as impractical
 Robert Owen set up Utopian community in Scotland

7. KARL MARX
 German philosopher
 Thought utopians were unrealistic
 Wrote The Communist Manifesto with
Friedrich Engels
 Society with no social classes
 Means of production owned by the community
 Struggle between “haves” (bourgeoisie) and
“have-nots” (proletariat).
 Believed the proletariat would rise up and
establish a classless society

8. MARIXISM FLOURISHES
 Social democracy
 Gradual transition from capitalism to socialism
 Inspired Revolutions around the world
 Russia, Asia, Latin America, Africa
 Decline
 People felt stronger ties to their own country than
to world wide communism
 Today, there are very few communist countries,
but many with elements of capitalism

9. HOMEWORK
 Ch. 19, sec. 4 Checkpoint Questions