Capitalism causes Capitalism causes Socialism which eventually Socialism which eventually

causes Communismcauses Communism

Makes sense, right?Makes sense, right?

AP World History – Unit 4AP World History – Unit 4

SocialismSocialism

Ancient rootsAncient roots Judeo-Christian belief in the common good, Judeo-Christian belief in the common good,

which takes precedence over individual which takes precedence over individual desires.desires.

The term “socialism” was coined in 1827 The term “socialism” was coined in 1827 by British socialist Robert Owen.by British socialist Robert Owen. He wanted to describe his view of a He wanted to describe his view of a

cooperative new society.cooperative new society.

Socialism’s emergenceSocialism’s emergence

Liberal political parties in 19Liberal political parties in 19thth century century Europe failed to address the desperate Europe failed to address the desperate needs of working people.needs of working people. Classical liberalism views poverty as an Classical liberalism views poverty as an

individual choice or failure, not the result of individual choice or failure, not the result of social structures. social structures.

Also suspicious of big government.Also suspicious of big government. Socialism provides a different conception of Socialism provides a different conception of

individual responsibility & government.individual responsibility & government.

Wait…what is the difference Wait…what is the difference between Liberals and between Liberals and

Conservatives?Conservatives?

ConservativeConservativeBeliefs and PoliciesBeliefs and Policies

Believe in: Believe in: Personal responsibility.Personal responsibility. Limited government.Limited government. Free markets.Free markets. Individual liberty.Individual liberty. Traditional values. Traditional values. A strong national defense.  A strong national defense. 

Believe the role of government should be to Believe the role of government should be to provide people the freedom necessary to pursue provide people the freedom necessary to pursue their own goals. their own goals. Conservative policies generally emphasize Conservative policies generally emphasize empowerment of the individual to solve problems.empowerment of the individual to solve problems.

Liberal Liberal Beliefs and PoliciesBeliefs and Policies

Believe in governmental action to achieve equal Believe in governmental action to achieve equal opportunity and equality for all.opportunity and equality for all. It is the duty of the State to alleviate social problems It is the duty of the State to alleviate social problems

and to protect civil liberties, both for the individual and and to protect civil liberties, both for the individual and for all humankind.for all humankind.

Believe the role of the government should be to Believe the role of the government should be to guarantee that no one is in need.  guarantee that no one is in need. 

Believe that people are basically good. Believe that people are basically good. 

Liberal policies generally emphasize the need Liberal policies generally emphasize the need for the government to solve people's problems.for the government to solve people's problems.

And now back to fun And now back to fun stuff about Socialism…stuff about Socialism…

Socialism’s principlesSocialism’s principles

Egalitarianism (equality)Egalitarianism (equality) Humankind will be unified and cooperative, Humankind will be unified and cooperative,

once wealth is owned and used for the once wealth is owned and used for the common good. common good.

Capitalism exploits the very people who Capitalism exploits the very people who create society’s wealth.create society’s wealth.

MoralismMoralism Division of rich & poor is evil.Division of rich & poor is evil.

Capitalism is fundamentally unjust. Capitalism is fundamentally unjust. The ideal future emphasizes peace, social The ideal future emphasizes peace, social

justice, and true liberty for all.  justice, and true liberty for all. 

Social democracySocial democracy

A variation on socialism that argues that A variation on socialism that argues that socialism and democracy can work socialism and democracy can work together. together. Example: British Labour Party.Example: British Labour Party.

Change comes through peaceful Change comes through peaceful democratic processes like elections.democratic processes like elections.

Democratic governments should promote Democratic governments should promote economic, as well as political, freedom & economic, as well as political, freedom & equality.equality.

Social democracySocial democracy

Socialist political parties compete and win Socialist political parties compete and win office in every western democracy except office in every western democracy except the United States. the United States. Argentina Australia, Belgium, Britain, Canada, Argentina Australia, Belgium, Britain, Canada,

Colombia, Denmark, Fiji, France, Germany, Colombia, Denmark, Fiji, France, Germany, India, Ireland, Israel, Malaysia, Netherland, India, Ireland, Israel, Malaysia, Netherland, Puerto Rico, South Korea, Sri Lanka, Puerto Rico, South Korea, Sri Lanka, Sweden, Venezuela, etc.Sweden, Venezuela, etc.

What’s different about the U.S.?What’s different about the U.S.?

What is the comparison What is the comparison between the Social between the Social

Democracy and Marxism?Democracy and Marxism?

Social democracy’s similarities Social democracy’s similarities with Marxismwith Marxism

Views capitalism as exploitive.Views capitalism as exploitive. Leading to social injustice and extreme Leading to social injustice and extreme

income inequality.income inequality.

These economic conditions have adverse These economic conditions have adverse effects on ordinary working people.effects on ordinary working people. In terms of physical health, psychological In terms of physical health, psychological

well-being, housing, education, etc.well-being, housing, education, etc.

Social democracy’s similarities Social democracy’s similarities with Marxismwith Marxism

Both ask the question: Both ask the question: Why should those who provide the money, Why should those who provide the money,

other wise know as “capital”, receive all the other wise know as “capital”, receive all the profits, and those who provide the labor profits, and those who provide the labor receive none of the profits?receive none of the profits?

It is labor, after all, that turns raw It is labor, after all, that turns raw materials, including cash, into something materials, including cash, into something with greater value.with greater value.

Social democracy’s differences Social democracy’s differences from Marxismfrom Marxism

Private property is not abolished.Private property is not abolished. The public should control the use of property The public should control the use of property

and make necessities available to all.and make necessities available to all.

Individual rights not abolished.Individual rights not abolished. It should complement other important values It should complement other important values

such as concern for others.such as concern for others.

Change can occur through an evolutionary Change can occur through an evolutionary process that uses democratic means. process that uses democratic means.

So, what does So, what does Mr. Marx think? Mr. Marx think?

Marx’s view of Social DemocracyMarx’s view of Social Democracy

Karl Marx said social democrats were Karl Marx said social democrats were naive to think that “enlightened capitalists” naive to think that “enlightened capitalists” would join with workers to form a new would join with workers to form a new society. society.

Violent revolution was inevitable.Violent revolution was inevitable.

Now for some terms that Now for some terms that are fun to say. are fun to say.

Define Marxist TermsDefine Marxist Terms

Bourgeoisie:Bourgeoisie: Modern capitalists who own the means Modern capitalists who own the means

of production and therefore get to keep of production and therefore get to keep all the profits.all the profits.

Today, this would include major Today, this would include major stockholders in corporations.stockholders in corporations.

Define Marxist TermsDefine Marxist Terms

Proletariat:Proletariat: Modern wage laborers who sell their Modern wage laborers who sell their

labor to live and don’t get any of the labor to live and don’t get any of the profits that they help to create.profits that they help to create.

This includes everyone who is not a This includes everyone who is not a stockholder or owner of capital, even stockholder or owner of capital, even professionals who work for a salary.professionals who work for a salary.

Karl Marx’s key ideasKarl Marx’s key ideas

Economic systems go through historic Economic systems go through historic cycles. cycles.

Overtime, an economic system becomes Overtime, an economic system becomes rigid and cannot adjust to new rigid and cannot adjust to new technologies.technologies. Eventually a new system emerges, with new Eventually a new system emerges, with new

class relations and oppression. class relations and oppression.

Someday, a perfect classless society will Someday, a perfect classless society will emerge and there will be no further cycles.emerge and there will be no further cycles.

Marx’s key ideasMarx’s key ideasSteps for changeSteps for change

1.1. Slave system gave way to feudal Slave system gave way to feudal economy.economy.

2.2. Feudal economy broke down with growth Feudal economy broke down with growth of manufacturing, towns, navigation & of manufacturing, towns, navigation & transportation, which causes the transportation, which causes the emergence of middle class.emergence of middle class.

3.3. Industrial capitalism emerged, with only Industrial capitalism emerged, with only two classes: proletariat and bourgeoisie. two classes: proletariat and bourgeoisie.

What are the Pros and What are the Pros and Cons of Industrial Cons of Industrial

Capitalism?Capitalism?

What is the difference between What is the difference between Commercial and Industrial Commercial and Industrial

Capitalism? Capitalism?

Industrial Capitalism Industrial Capitalism Negative EffectsNegative Effects

Destroys important human valuesDestroys important human values Replaces religious belief with naked Replaces religious belief with naked

exploitation.exploitation.

Undermines an individual’s sense of Undermines an individual’s sense of personal value in one’s work.personal value in one’s work.Undermines human relationships.Undermines human relationships. All relationships are based on cash. All relationships are based on cash.

Destroys human freedom. Destroys human freedom. The only freedom it protects is free trade.The only freedom it protects is free trade.

Industrial CapitalismIndustrial CapitalismPositive EffectsPositive Effects

Unprecedented exploration and Unprecedented exploration and technological advancements.technological advancements.

War less likely.War less likely.

Urbanization opens people’s minds to new Urbanization opens people’s minds to new ideas.ideas.

Economic production centralized, leading Economic production centralized, leading to favorable conditions for communism to to favorable conditions for communism to emerge.emerge.

Can you feel it? Can you feel it?

It’s right around the It’s right around the corner….it’s almost here.corner….it’s almost here.

Communist Revolution InevitableCommunist Revolution Inevitable

Capitalism creates huge factories. Capitalism creates huge factories.

Workers become concentrated and begin Workers become concentrated and begin to organize for legal reforms. to organize for legal reforms. Higher wages and better working conditions. Higher wages and better working conditions.

Their efforts fail. Their efforts fail.

Fierce competition between capitalists Fierce competition between capitalists leads to new technologies, which leads to leads to new technologies, which leads to lower costs.lower costs.

Communist Revolution Inevitable Communist Revolution Inevitable In the competition, some capitalists go bankrupt In the competition, some capitalists go bankrupt & have to become workers, and many workers & have to become workers, and many workers lose their jobs as new technology replaces them. lose their jobs as new technology replaces them. Greater numbers of people permanently Greater numbers of people permanently unemployed. unemployed. Misery widespread.Misery widespread.

Fewer people can afford the products of Fewer people can afford the products of capitalists, so fewer companies survive. capitalists, so fewer companies survive. Class struggle reaches a climax.Class struggle reaches a climax.Conditions now ripe for revolution. Conditions now ripe for revolution. The proletariat, having nothing to lose but their The proletariat, having nothing to lose but their

“chains”, rise up. “chains”, rise up.

Communist RevolutionCommunist Revolution

Revolution will eliminate private property. Revolution will eliminate private property. No longer will man have the means of No longer will man have the means of

exploiting another man. exploiting another man.

Bourgeoisie will fight, so revolution will be Bourgeoisie will fight, so revolution will be violent.violent.

A dictatorship of the proletariat will follow A dictatorship of the proletariat will follow to weed out remaining capitalist elements.to weed out remaining capitalist elements.

So, how does So, how does Capitalism compare to Capitalism compare to

Communism? Communism?

COMMUNISMCOMMUNISM CAPITALISMCAPITALISMLaborer works for the Laborer works for the collective good.collective good.Organized by state, in Organized by state, in short term to benefit all.short term to benefit all.Wealth distributed Wealth distributed according to need.according to need.Promotes equality of Promotes equality of condition.condition.Creates classless society Creates classless society of cooperation and of cooperation and collectivity.collectivity.State eventually State eventually disappears.disappears.

Laborer works for Laborer works for individual gain.individual gain.Organized by free Organized by free market forces.market forces.Wealth distributed Wealth distributed according to ability.according to ability.Promotes equality of Promotes equality of opportunity.opportunity.Creates incentive for Creates incentive for individuals to work hard individuals to work hard and innovate and and innovate and prosper.prosper.System works naturally System works naturally without regulation.without regulation.