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Socialism & Capitalism. By: Alex Chavez. Socialism- Economic ideas where all or most productive resources belong to the state, and all profit is distributed by the state, not by private enterprises, for the good of the people.
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Socialism & Capitalism By: Alex Chavez
Socialism- Economic ideas where all or most productive resources belong to the state, and all profit is distributed by the state, not by private enterprises, for the good of the people. Capitalism- Ideas where private ownership of productions, property acquisition, and price/ wages are done with little to no interference from the government (laissez-faire economy). Glossary
Glossary, pt. 2 • Bourgeoisie- Capitalists, in Marxist terms, that naturally exploit workers for money, and control the means of production, (ie factories). • Proletariats- Marxist term for those who own nothing but their own labor power. According to Marx, it’s this class that’s supposed to start a revolution to destroy the Bourgeoisie and class structure in general.
Final Glossary • Market economy- Economy in which scarce resources are all (or nearly all) allocated by the interplay of supply and demand in free markets, largely unhampered by government rationing, price-fixing or other coercive interference.
Origins of Socialism • Karl Marx (pictured left) wrote The Communist Manifesto with Frederick Engels, explaining how the working class would overtake the Capitalists in order to free society from alienation.
Karl Marx, a brief list of Ideals • The most important features of a society are its economic classes and their relations to each other in the modes of production of each historical epoch. • The socialist slogan is "From each according to his ability, to each according to his work." • Class hatred is a good thing and class collaboration is a bad thing. • Capitalism normally is replaced by socialism as a consequence of a proletarian revolution.
Marx and Engels Idea of Class Warfare • Engels (pictured) and Marx wrote extensively on the idea of class warfare, in which the proletariats would revolt against the bourgeoisie to liberate the state, and end corruption, since the Prol. Would have no one else to manipulate.
Socialism’s view of Capitalism • As you can see, it’s quite a bitter view. In fact, many Socialists loathe Capitalism because they feel that the bourgeoisie exploit the proletariats, and use them for their own financial gain.
Origins of Capitalism • In England, bankers,merchants, and industrialists took the positions of power from the landowners, to form the early body of Capitalism. • Then came Adam Smith’s treatise The Wealth of Nations (1776), explaining how it’s human nature to trade and sell. It also showed how the ideal form of Capitalism would be in a laissez-faire (literally, ‘let do’) government.
Capitalism in Purest Form • In purest form, Capitalism led ;in part; to the Great Depression. Economists thought the market would self correct if left alone. Unfortunately, it led to the largest Stock Market crash in U.S. history, and the creation of the SEC, or the Securities and Exchange Commission, to monitor companies’ stocks and quotes.
A Blend of Socialism and Capitalism? • Yes, it’s possible. Just look at the US, where we’re happily Capitalists, yet we do have Socialist concepts in our government: • Medicare & Medicaid are derived from Socialist ideals, as is Welfare, and Food Stamps, and if Universal Healthcare is passed, this might just be the largest Socialist concept in America.
Capitalism’s view of Socialism • Generally, Capitalists view Socialism as a serious detriment to it’s own economy, meaning that this form of economics does nothing but hurt its’ own people in the long run. They also view Socialism as impossible, because of basic human urges of need, and basic human error of want.
Examples of failed Socialist states • 1989-’91: The dissolution of the USSR led to a newly developed Russia left with an uncertain economic future • This also led to the satellite states (Serbia, Bosnia, etc.) from the former USSR left with a certain economic uncertainty, seeing as how their “mother country’s” economic policies failed.
Aspects of both styles • Capitalism is a risky style of economics, where ordinary people can become either filthy rich, or horribly impoverished, which helps the economy, but can lead to many wide social dilemmas. • While Socialism is a more secure style, it caps off the amount of wealth one can acquire, thus eliminating the theory known as the “trickle-down” effect, hurting the economy in general.
Credits • www.auburn.edu • http://www.mdx.ac.uk • J. A. Schumpeter, Capitalism, Socialism, and Democracy (1983) • www.wsu.edu • www.formalstanford.edu
