------------------------------------------------- Economics: “Haves vs. Have Nots”
Workers of the world unite! You have nothing to lose but your chains!
Economics: Social Science
The study of the production, distribution and consumption of goods and services
New Ways of Thinking-Textbook chapter 7-Section 4
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IDEAS and PEOPLE: 1. Malthus-over population will occur! 2. Ricardo-wages effect the population growth “You have more kids, you have more workers IF YOU HAVE MORE WORKERS, WAGES go down! Wages go down you have less kids If you have less kids you have less workers If you have less workers, wages go up,
If wages go up you have more kids
Malthus and Ricardo-let people alone to improve their own lot, not the government
1. Benevolent-disposed to doing good 2. Servile-submissive 3. Social Democracy-workers, proletariat 4. Scientific Socialism-socialism will emerge as the by-product of human history and that word will all become socialistic by evolutionary means. 5. Decentralized-movement from one to many. Centralized Gov. does everything, decentralized Gov. allows many others to do it. 6. Cosmopolitan-world-wide rather than local 7. Physiocrat-political economist who agree with Smith 8. Commune- 9. Utilitarian- 10. Utopian Society- 11. Environment degradation 12. Epoch- 13. Positive checks-anything that reduces the human population. (war, disease, famine flood anti-bacterial soap, ossification of American youth
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Adam Smith-The “Wealth of Nations”
Fundamentals of Capitalism
System of Government-Democracy
1. Private ownership of the means of production
*Stocks in the company-
*NYSE(wall street)-, Tokyo, London, Shanghai
*NASDAQ-Nation Association of Securities Dealers Automated Quotations
*Standard and Poors 500 *Dow Jones Industrials-30 Companies-14,000-6% return, risks
*Money Market “long term, diversify, and what you like”
403b Retirement, 401k Retirement, Teachers retirement fund-$6 billion, stocks
LLC Limited Liability Corporation
Profit is income! 2. Free market-Laissez-faire-“let it go” free hand 3. Let the Laws of Supply and demand operate on their own 4. Consumer is King! 5. Nobody ever lost money underestimating the stupidity of the American consumer-PT Barnum 6. Income Distribution-very few rich, everyone else poor
US-“middle class” 7. Adam Smith-unregulated exchange of goods and services would come to everyone, not just the rich 8. Deity-god or goddess (deist 9. Subsidies-entitlement given government, paid for with taxes 10. Adherence- 11. Ossify-opposed to change 12. Palatable
Laws of Supply and Demand:
The Positive Aspects of capitalism:
1. Individuals have the freedom to take risks and pursue wealth 2. US GDP $16,000,000,000,000 3. Standard of Living higher 4. Consumers benefits from competition and are provided the option to purchase almost anything they want 5.
The negative aspects of capitalism: 1. Not everyone has the same opportunity a. Racism-overall poverty rate is 12%, for black Americans its 24% b. Sexism-females still earn less than their male counterpart c. Elitism- privileged class, trust fund baby’s d. Cycle of Poverty- if you are in poverty it is difficult to get your children out of it. (no health care, poor academic culture at home) e. FHC-17% of the students qualified for free and reduced lunch
Rise of Monopolies
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Karl Marx and Frederich Engels-“Communist Manifesto”-1848
Fundamentals of Communism
System of Government-Dictatorship
1. The State or Government owns everything
2. Command economy-the Government determines what is produced, at what
