good afternoon!!!

Good Afternoon!!!

1. NVC

2. Warm up: Manchester

3. Rise of the Middle Class

4. Rise of Capitalism

Essential Question: What are the principles of Capitalism?Homework: Finish Manchester Poster due Friday

Warm Up: Manchester

• In one word, how would you describe living in Manchester?

• Explain your word!

Rise of the Middle Class• Industrial Revolution

creates giant amounts of wealth– Most of wealth belonged to

new Middle Class

• Middle Class: factory owners, merchants, entrepreneurs, and other professionals– The bourgeoisie!– Changes social structure in

Great Britain: Rich nobles and aristocrats no longer have all the power!

Rise of Capitalism

• Rise of Middle Class due to the rise of Capitalism– Capitalism: Economic

system based on competition, private property, and the pursuit of profit in a free market

– In Short: anyone can own their own business and compete without the government interfering

Adam Smith

• Adam Smith: Scottish professor and economist– Wealth of Nations 1776:

book that sets down the ideas of Capitalism

• Laissez Faire: “Let the people do as they please!” = Free Market

Adam Smith

“Every man should be left perfectly free to pursue his own interest his own way.”—Adam Smith, The Wealth of Nations

Why does Capitalism work?

• According to Adam Smith….1. Law of Self-Interest: People work for their own

good2. Law of Competition: Competition forces people

to make a better product

Law of Self Interest

Law of Competition

Law of Competition

Capitalism Leads to Problems

• Smith believed in “perfect freedom”– No rules!– Goal: Make as much

money as you can!

• Result: Workers exploited– Low wages– Long hours

Adam Smith Quote Analysis• “The man whose whole life is spent performing a

few simple operations, of which the effects are perhaps always the same, has no reason to apply himself or to use his understanding in finding solutions for difficulties which occur. He naturally loses the habit of such exertion (using his brain), and generally becomes as stupid and ignorant as it is possible for a human creature to become.”

• Do you agree or disagree? Why?