Capitalism is an economic system in which private citizens own factors of production and have the freedom to make economic decisions. Adam Smith, an advocate of free market economies, published a book in 1779 entitled The Wealth of Nations that illustrated his views on capitalism and brought them to the public eye. Thomas Malthus and David Ricardo were influential men who supported Mr. Smith in his ideas. Mr. Smith recognized the ills that come from too much government interference, and encouraged the spread of capitalism to keep businesses owners free. Under capitalism, a person’s income is based on his accomplishments. The harder one works, the more money he will earn, and the higher he will climb on the social status. In this economy, all officials are elected in free elections. Consumers, as well as entrepreneurs, decide what will be produced, based upon what they “vote” for with their dollar. Socialism is a mix of market and command economies. In such an economy, the factors of production are owned by the people but controlled by the government through taxes and laws. Socialists believe government control can end poverty. This system began in the early 1800’s to offset the ills of industrialization. French revolutionists Charles Fourier and Henri de Saint-Simon preached that socialism would end opposition from employers. They believe governments are able to be more just and distribute wealth and justice better than the common man. Socialism strives for more equality in income than is common and recommends collective ownership of the factors of production. It is the border between capitalism and communism. Marxism was begun by Karl Marx and Friedrich Engels in the early 1800’s. Mr. Marx was concerned that t... ... middle of paper ... ...any. In 1863, black slaves were freed by President Lincoln’s Emancipation Proclamation. Mr. Lincoln was killed at the end of the war, not living to see his dream of truly united states realized when the South rejoined the Union. These Southern states suffered greatly from the war. The Emancipation Proclamation set loose their free labor, destroying their economy. Their financial system, started at the beginning of the war, was worthless, and the former Confederate States of America were poverty stricken. For the newly freed blacks things were not so good either. They were unskilled except for menial farm labor and, for the most part, uneducated. Many whites, even in the north, were prejudiced against them. It was not until the 1960’s that these men and women of color were finally granted equal rights with the rest of the white United States of America.