UnitTwo

=﻿Unit Two [ Chapter Six - Chapter Ten ]=

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Jacksonian America

 * 1) Through the Indian Removal Act, Jackson was able to move Indians to lands west of the Mississippi in order to provide more lands for white settlers in the East.
 * 2) A change in politics include the second party system which resulted in the birth of the Whig party who were rivals of the Democratic party. Whigs were similar to the Federalists; supported improvements and developments in the economy and modernizing.
 * 3) The Bank of the United States was weakened when Jackson transfered government deposits out of there and into several private banks which weakened the Bank of the United States. - Decentralized economic powers.
 * 4) Jackson represented and favored the idea of equal opportunity and equality in general for white males such as for voting and starting new businesses. Promoted economic and political opportunity for all white males.
 * 5) Jackson crushed the idea of nullification by the state governments and asserted the supremecy of the national government. National government will always override the state governments.
 * 6) The spoils system --> Jackson put his friends/supporters into government office positions.

What is Capitalism?

 * Capitalism is an economic system where private individuals or businesses are in charge of their own wealth, investments, and ownerships instead of having it all be controlled by the government.
 * The idea of exchanging one thing for other things that you want or need.

//"Means of production" = Capital = Money and goods (Machinery, resources)//
 * //An economic system where the means of production are privately owned and profits made go to themselves. Control by private business/individuals and small groups opposed to control by the government.//
 * //Favors who ever is successful and controls the money as well as the goods.//
 * //Class based system -- owners at the top, workers below - whoever controls the capital has the most power.//
 * //"Your success is in your hands." If you can do it and work hard at it, you can succeed and move up from your current social class.//
 * //Unequal distribution of wealth.//

//Poor people support communism & socialism --> Their future does not depend on their abilities, they will be in the middle class with others.// //Rich/talented/confident people support capitalism --> Allows them to get as rich as they possibly can.// //Communism - When means of production ARE controlled by the government.// //Demand = Supply//

How does Capitalism work in America?

 * Paper currency instead of using only gold and silver as money -- Makes it easier for people to purchase the things they want or need without having to carry around gold/silver.
 * Is the stock market an example of capitalism? People/corporations make the decisions as to whether or not they want to purchase a stock without the need to have consent from the government.


 * __INVISIBLE HAND THEORY - Self regulation of the economy; is not regulated by the government or by individual people.__**
 * **__Capitalist economy runs smoothy through business competition, self interest, and supply&demand.__**

Self regulation - Because of demands of certain goods there is competition between companies which leads to the market to run by itself.
 * If an item is in high demand, there will be more companies going into that business.
 * If an item is not in high demand and the interest people have in it is decreasing, the companies in that business will eventually close and go into a business where the items are in high demand.

Laissez Faire Capitalism is not used in America. In America, we practice a mixed capitalism; America is a MIXED ECONOMY (though sometimes referred to as a Welfare Capitalism). There are some socialistic elements where the government helps people such as food stamps, subsidized housing, unemployment bcenefits, social security, et. The government also intervenes by imposing rules, regulations, as well as taxes.
 * Laissez Faire Capitalism - Theory of free-market capitalism**
 * "Laissez Faire" --> To let be, hands off in terms of government intervention.

Elements of the Economy

 * Government - Rules, regulations, taxes, welfare programs.
 * Industries/Businesses
 * Workers/Unions
 * Banks
 * Consumers
 * Investors
 * The Stock Market
 * Schools/Education

What is the definition of "economy" ?
The management/exchange of resources in a community/country/etc for production and distribution of its goods and services.
 * A system in which a group of people manages its resources and produces as well as exchanges its goods, services, and currency.