Capitalism, Socialism and Communism

Capitalism• Ideology Associated with Adam Smith (“Wealth of

Nations”)– “It is not from the benevolence of the butcher, the

brewer, or the baker that we expect our dinner, but from their regard to their own interest.” – Smith

• Private Ownership• Laissez faire Economy• Competition• Ensures Quality Products and Services at low Prices• No Government Intervention in the Market• Market acting as a Self-regulator

Adam Smith

Karl Marx

Marxism

Basic Communism

Feudalism

Capitalism

Communism!!!!

Socialism

Communism

• Economic system.• Believes in collective (group) ownership and a

planned economy. • No Concept of private Ownership• The theory is that everybody pools their

resources and labor to evenly distribute everything.

Stage 1: Primitive Communism• This is how humans lived together

before the emergence of large-scale agriculture.

• Small hunting and gathering tribes• Everything was shared amongst the

tribe-food, jobs, belongings. • No one owned land and no one is

exploited for their labor.• Eventually one group comes to power

which leads to Feudalism…

Stage 2: Primitive Communism - Feudalism

• Under feudalism, a king becomes ruler over all the people. Exploitation begins.

• Belief in the Divine Rights of the King to Rule• The king gives land and privileges to nobles who

rule the people on behalf of him • As trade develops, some people get richer. This

leads to Capitalism…

Stage 3: Feudalism - Capitalism• Business owners or capitalists get richer while

the workers do the work.• Capitalists get more power to serve their own

interests.• Capitalism creates a large working-class of

people who organize, create unions, and demand changes. This leads to Socialism…

Stage 4: Capitalism-Socialism• In the Socialist revolution all the rulers lose power, wealth,

and privilege.• Workers take control of the country to produce things for

everyone. No one is exploited.• Nothing is made for profit therefore all people benefit.• These ideas spread across the world to create Communism…

Stage 5: Socialism-Communism

• Socialism recognizes the boundaries of a country, while Communism does not recognize the boundaries

• All Across the World, all the property is jointly owned by the People

• Money Ceases to Exist and people mutually dependent on each other

• All human activity goes towards benefiting each other-allowing all to live their lives to the fullest.

Communism/Socialism: What’s the difference?

• Socialism is, “from each according to their ability, to each according to their Work.”

– Socialism is the stage between Capitalism and Communism. It builds upon the previous system (Capitalism) by nationalizing the “means of production” (i.e. corporations, resources, banks, etc.), but not by making everyone equal.

– Communism is extreme Form of Socialism which aims to set up Classes, Moneyless and Stateless Society

• Communism is “from each according to their ability to each according to their NEEDS.”