Industrial Capitalism

Definitions

Capitalism: economic system where individuals answer the questions of supply andDemand in order to make a profit.

*Owners control the means of production (method and process of production)*Workers individually have little control over the means of production, but as asingle unit can exert more control through collective barganing by their Union.

Socialism: economic system where the State controls the means of production and Parties cooperate to answer questions of supply and demand

*”Society” controls the means of production and the emphasis is upon satisfying

human need, rather than individual profit*Individual talent may be overlooked and innovation for profit is not

central motivator

Characteristics of Industrial Capitalism

The market (You and I) see competition as a very healthy part of capitalism; it keeps industry honest, mostly fair and prices within a reasonable range.

Competition within an Industry is GOOD: Meat packers vs other meat packers

Railroads vs other railroadsRailroads vs air lines vs car industry

Apple vs. MicrosoftChevy vs. Ford vs Toyota

BP vs. ShellSprint vs. US Cellular

AT&T vs Comcast vs Internet

Characteristics of Industrial Capitalism

Characteristics of Industrial Capitalism

Definitions

Dichotomy: division into two halves or mutually exclusive parts

Characteristics of Industrial Capitalism: Chicago Packers

1) Marketing2) Transportation3) Production

Each of these affects price and the quality of the product; some more than others