Homework: Ch 2 Review – Paper or Online – due next week…on the day of the quiz.

FrontPage: Which of these 2 options would you prefer?

#1 - All students automatically receive a B for all work completed and tests taken, as long as a simple baseline of completion is met.

OR#2 – The top 20% will receive A’s, and the bottom 80% will receive C’s, D’s and F’s

What problem was the FrontPage scenario possibly solving?

As it is now, some kids get A’s, more get B’s and C’s, and some get D’s or F’s There is “inequality” in grades

So to help all together, we guarantee that with a modicum of effort, all will receive the same… And those who cannot do anything will

also receive their HS diploma

Command Economy

Or, …Do as I say, not as I don’t say…

Chapter 2, Section 2

What is a command economy?

Centrally-planned economy – a system in which government leaders make all economic decisions

• Socialism – economic system in which government owns all or most of the means of production, and answers the 3 economic questions• Communism – “authoritarian socialism” – more a

political system with socialist economy

Karl Marx – “father” of communism/ socialism

Author of The Communist Manifesto (1848) Capitalism is simply workers

(proletarians) exploited by the ownership class (bourgeoisie)

Rising tension between these classes was inevitable; would lead to overthrow of the bourgeoisie

Establishment of a “classless”, hopefully “stateless” society

Established the idea of socialism – public (government) ownership of MoP, answers all questions about production From each according to his ability, to

each according to his need

Marx Quotes… The history of all previous societies has

been the history of class struggles.

The theory of Communism may be summed up in one sentence: Abolish all private property.

“Let the ruling classes tremble at a Communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries unite!”

On Democracy: “The oppressed are allowed once every few years to decide which particular representatives of the oppressing class are to represent and repress them.”

Marx’ influence

By the early 1900s, people begin to believe that it socialism is a way to make everyone equal, a “perfect” utopian society

Several revolutions overthrow monarchies in Russia and China, and set up communist systems Aim to eliminate class distinctions

and the inequality which existed in these societies

Command Economies in the World Today

There aren’t many left…why? The former Soviet

Union from 1917 to 1989 was one example

North Korea and Cuba are modern examples of MOSTLY command economies

These economies struggle to provide for their people…

Why socialism has failed…

Inability of centralized planners to effectively make decisions on prices and production Impossible for anyone to know all of the

factors which go into the millions of things that can be bought and sold

Lack of profit motive Little motivation to work; in fact, the

“rational” behavior would actually be to NOT work hard

Elements of socialism in the US?

Can you think of any part of our economy that is “socialized”?

http://www.youtube.com/watch?v=pCpCIkcUeDc

Final Thought…

So if public ownership of the MoP doesn’t work out, why would anyone want the government to make ANY economic decisions?

Homework: Ch 2 Review – Paper or Online – due Tuesday; quiz Ch 2

FrontPage: NNIGN

Irony in Real Life