Communism & Capitalism

1. Communism & Capitalism

3. Basics of Capitalism: • Capitalism is said to promote economic growth and the overall standard of living. • In other words, capitalism creates CAPITAL (money) …and lots of it.

4. What is capitalism? • Economic system. • Believes in individual ownership and competition. • The theory is that when everyone is selfish, it benefits everyone. • Adam Smith is “the” capitalist.

6. What’s good about capitalism? • Freedom, choice. • You can work wherever, buy whatever, and pretty much do whatever. • If you’re successful, you can be very successful. Think Bill Gates.

7. What’s bad about capitalism? • No “safety net.” • If you’re unsuccessful, you can be very unsuccessful. Think about the poor. • Big gap between rich and poor.

8. Dialectical Materialism Class struggle: a contradiction between those with wealth and those lacking it. This contradiction sustains the society while at the same time threatening to disintegrate it.

9. Hence Marx thinks that • The worker of the world has nothing to lose, but their chains, workers of the world unite. • There is a specter haunting Europe, the specter of Communism. • Revolutions are the locomotives of history.

10. Capitalism is the catalyst for a proletarian revolution • Marx claimed that capitalism was nothing more than a necessary stepping stone for the progression of man, which would then face a political revolution before embracing the classless society. • Marxists define capital as "a social, economic relation" between people (rather than between people and things).

11. Capitalism results in • Unrest and protest – • Long hours, low pay • Periodic unemployment • No Welfare State • No universal right to vote

12. Marx’s insight: It’s all about money

13. Some have it…… They are called capitalists (or the bourgeoisie)

14. Others don’t ….. They are called the workers (or the proletariat)

15. Capitalists and workers are thrown together into relations of production

16. They don’t get on too well

17. Capitalists want the maximum PROFIT – and the lowest costs

18. Workers want the highest wage for the least work

19. These two groups are locked in mortal combat

20. The Capitalists compete with each other. The successful capitalist’s get richer and richer

21. …and the failed capitalists fall down into the working class

22. The workers meanwhile are more and more exploited by the remaining capitalists – they get poorer and poorer

23. Marx said that eventually the workers will rise up in revolution against the capitalist class A new communist society will be created

24. Marx has a theory – ECONOMICAL THEORY it’s because societies are always made from two parts

25. The Base The base is like the foundations of a building. Marxists say the economy (the means of production) is the base

26. And the superstructure The rest of the building which is built on the foundations The superstructure means all the other parts of society – culture, the state, education

27. The economic base determines (shapes) the superstructure

28. Social Control in capitalist society is achieved through ideology - ruling class ideology

29. The ruling ideas in any time are always those of the ruling class

30. Marxism makes people appear to be dominated by structures Puppets or People with the ability to act?

31. Now – over to you – weigh it up. Like any theory it has good points and bad points - but hopefully you will find it can explain some things about your society ?

32. So…. System of government is democratic • Property is privately owned • Driven by free enterprise • Wealth distributed unevenly • Education and health care provided by private entities • Freedom of the press Class distinctions: • upper class, middle class and working class • Focus is on the individual and his/her own progress in life

33. The ideology of capitalism • People need freedom • When people compete against one another, they achieve greater things • Some people have more than others because they make better use of their abilities • Governments should not interfere with the rights of individuals to make their own living • The government should interfere in the economy as little as possible

34. Do you agree? Or disagree? • Based off of what you know, do you think Capitalism is a good idea? • If yes: explain why • If no: what are potential dangers of Capitalism?

35. The Beliefs of Communism • The rich get richer. • The poor get poorer. • People wanted to make everything equal.

36. Ideology of Communism • People need one another • When people work together as equals, they achieve greater things • "From each according to his ability, to each according to his needs" • No-one should have more than anyone else - everybody's needs are equally important • Governments should make sure that everyone's needs are being met • There is central control of the economy -

37. What is communism? • Economic system. • Believes in collective (group) ownership and a planned economy. • The theory is that everybody pools their resources and labor to evenly distribute everything. • Karl Marx is “the” communist. • If anything is certain, it is that I myself am not a Marxist. ( Marx)

39. Communist Manifesto • Abolition of property • Heavy, progressive taxes • Abolition of inheritance • Confiscation of property of all emigrants and rebels • Central banking • State-controlled communication and transportation • State-controlled education of the children

40. Marxism • Marx and Engels studied the history of the world’s economies Communism!!!! Socialism Capitalism • They believed they discovered an inevitable pattern Feudalism Basic Communism

41. So… • System of government is totalitarian • Property is owned by the state • No free enterprise is allowed • Wealth distributed equally • Education and health care provided by the state • Press controlled and owned by the state • Classless society: -all members of society are considered to be equal • Focus is on the progress of the community as a whole -

44. Communism/Socialism: What’s the difference? • Socialism is, “from each according to their ability, to each according to their DEEDS.” • 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. People are paid wages based on several factors (social need, difficulty, amount of schooling required, etc.), so not everyone will make the same wage. • Communism is “from each according to their ability to each according to their NEEDS.”

47. What’s good about communism? • Security, basic needs met. • Everyone would have a job, house, health care, etc.

48. What’s bad about communism? • Lack of choice • No reward for being a better worker or punishment for being a slacker. • Everyone expected to be the same.

49. How’s this related to the IndRev? • Adam Smith’s capitalism dominated the IndRev. Led to bad working conditions. • Karl Marx wrote about communism as solution to capitalism’s problems. • Marx said the workers would get fed up and overthrow their governments and start communism.

50. Disadvantages: • Abuse of power • Restrictions- no freedom of speech, press, no religious practices • Censorship • Against ethnic diversity • Government controls property- very little if any, could own private property • Individual doesn’t compete, in some ways lazy and does not need to strive for more