Question

review of the two major economic systems: capitalism - adam smith - \the wealth of nations\ • individuals and businesses own property and the means of production • progress results when individuals follow their own self - interest • businesses follow their own self - interest by competing for the consumers money. each business tries to produce goods or services that are better and less expensive than those of competitors. • consumers compete to buy the best goods at the lowest prices. this shapes the market by affecting what businesses sell and for how much. communism - karl marx - \the communist manifesto\ • the community or the government should own property and the means of production. there should be no private ownership. • progress results when a community cooperates for the good of all. • capitalist employers take advantage of workers. the community or the government must act to protect workers. • capitalism creates unequal distribution of wealth and material goods. a better system is for the government to distribute goods according to each persons needs. assignment 4: who said it? read the following statements and determine whether a capitalist or a communist wouldve said them. use the chart on the previous page for help. while you read, underline key words and phrases that give you clues as to whether it is a communist or capitalist. then, in the space to the right, explain how you came to your answer. - \the capitalist class will never give up the ownership of the means of production peacefully. workers should band together and overthrow the owners and secure for themselves the right to ownership. inevitably, the workers will win.\ explain: - \the price for human labor is governed by the laws of supply and demand. if wages are increased for one generation when the supply of workers is low, people will have more children and there will be an oversupply in the next. to prevent this, wages should not be increased in the first place.\ explain: - \the history of all hitherto existing society is the history of class struggles... our immediate aim is the overthrow of the bourgeois supremacy. the proletarians have nothing to lose but their chains. they have a world to win. working men of all countries, unite!\ explain: - \government must end its idea of mercantilism. prices should be determined by the laws of supply and demand, not by government regulation. free trade and competition are necessary to encourage the production of goods that are of good quality and low price.\ explain:

Explanation:

1. "The capitalist class will never give up the ownership of the means of production peacefully. Workers should band together and overthrow the owners and secure for themselves the right to ownership. Inevitably, the workers will win." - This statement reflects the communist view of class - struggle and the need for workers to take control of production means, as capitalists are seen as unwilling to relinquish power. Key words like "workers", "overthrow the owners", and "ownership of the means of production" are indicative of communist ideology.
2. "The price for human labor is governed by the laws of supply and demand. If wages are increased for one generation when the supply of workers is low, people will have more children and there will be an oversupply in the next. To prevent this, wages should not be increased in the first place." - This is a capitalist - oriented view. It emphasizes the market - driven nature of labor prices based on supply and demand, which is a fundamental concept in capitalist economic theory.
3. "The history of all hitherto existing society is the history of class struggles... Our immediate aim is the overthrow of the bourgeois supremacy. The proletarians have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!" - This is a classic communist statement. It highlights class - struggle and the call for the proletariat to unite and overthrow the bourgeoisie, which are core tenets of communist ideology.
4. "Government must end its idea of mercantilism. Prices should be determined by the laws of supply and demand, not by government regulation. Free trade and competition are necessary to encourage the production of goods that are of good quality and low price." - This statement aligns with capitalist principles. It advocates for free - market forces (supply and demand), free trade, and competition, while opposing government intervention in the economy, which are hallmarks of capitalist economic thought.

Answer:

1. Communist. Explanation: Mentions workers overthrowing capitalist owners for means - of - production ownership, a key communist idea.
2. Capitalist. Explanation: Based on labor price determined by supply and demand, a capitalist economic concept.
3. Communist. Explanation: Focuses on class - struggle and proletariat uniting to overthrow the bourgeoisie, typical communist themes.
4. Capitalist. Explanation: Advocates free market with supply - demand determining prices and opposes government regulation, capitalist principles.