1 / 23

The History of Economic Systems

Audrey
Download Presentation

The History of Economic Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


    1. The History of Economic Systems Chapter 3 Appendix

    2. Feudal Society: Rules of Tradition Feudalism was the predominant economic system in Europe about the 8th to the 15th century. Feudalism is an economic system in which traditions rule.

    3. Feudal Society: Rules of Tradition There was no central government and no unified system of law.

    4. Feudal Society: Rules of Tradition Although the lord provided protection, tradition ruled the manor more than the lord did.

    5. Problems of a Tradition-Based Society By dictating who did what, tradition prevented individuals from being employed at what they did best. Tradition doesn’t work well when society must undergo change.

    6. Problems of a Tradition-Based Society Serfs who fled the manor could safely escape to towns or cities.

    7. Problems of a Tradition-Based Society Markets broke down tradition.

    8. From Feudalism to Mercantilism Traders and merchants became more wealthy than feudal lords. They threw their support to the king, enabling the king to expand his power over the lords. Power shifted from the manors to cities and towns.

    9. From Feudalism to Mercantilism The government became an active influence on economic decision making.

    10. From Mercantilism to Capitalism Industrialists competed with the guilds to change the existing system. Craft guild members were artists in their own crafts. Industrialists devised machines to replace hand production by craftsmen.

    11. From Mercantilism to Capitalism Industrialists supported and financed democratic reform movements limiting the power of kings.

    12. The Need for Coordination in an Economy Craftsmen argued that government needed to coordinate economic activity.

    13. The Need for Coordination in an Economy In his book, The Wealth of Nations, Adam Smith developed the concept of the invisible hand.

    14. The Industrial Revolution Beginning about 1750, technology and machines rapidly modernized industrial production. Mass produced goods replaced handmade goods.

    15. The Industrial Revolution By the 1800s, the Industrial Revolution, democracy, and capitalism had become Western institutions.

    16. From Capitalism to Welfare Capitalism Capitalism was marked by long workdays, low wages, child labor, and dangerous working conditions.

    17. Marx’s Analysis The best-known critic of capitalism was Karl Marx. Marx argued that workers would revolt and that capitalism would be replaced by a socialist economic system.

    18. The Revolution That Did Not Occur Governments stepped in to stop the worst abuses of capitalism. In the late 1930s and the 1940s workers dominated the political agenda.

    19. The Revolution That Did Not Occur Capitalism became welfare capitalism – an economic system in which the market operates but government regulates markets significantly.

    20. From Feudalism to Socialism Capitalism did not evolve into socialism as Marx predicted it would. Socialism took root instead in feudalist Russia, a society largely bypassed by the Industrial Revolution.

    21. From Feudalism to Socialism Russian socialists created state socialism.

    22. From Feudalism to Socialism Since the late 1980s, Soviet-style socialism has fallen apart.

    23. The History of Economic Systems End of Chapter 3 Appendix

More Related