Chapter 22: Section 5

1. Chapter 22: Section 5 Socialism

2. Terms to Know • Means of production • Socialism • Utopian socialists • Communism • Democratic socialism

3. Terms to Know • Means of production • System of producing large numbers of identical items • Socialism • Political and economic system in which the government owns the means of production • Utopian socialists • Persons who believe that people can live at peace with each other if they live in small cooperative settlements, owning all of the means of production in common and sharing the products. • Communism • Authoritarian socialism; economic and political system in which governments own the means of production and control economic planning • Democratic socialism • Political system in which the government takes over the means of production peacefully; people retain basic human rights and partial control over economic planning

4. The Main Idea • The Industrial Revolution gave rise to new ideas about economic, political and social justice.

5. Socialism • Industrial Revolution • FEW people became enormously rich • MOST remained poor • Including workers whose labor drove the economy • Capitalism- Economic system in which individuals, rather than governments, control the factors of production

6. Socialism • Industrial Revolution • This uneven distribution of wealth disturbed many people. • They believed the only way to distribute wealth more evenly was to change the ownership and operation of the means of production. • Means of Production • Land • Capital • Labor • These people (reformers) advocated a political and economic system called socialism.

7. Socialism • Governments own the means of production and operate them for the benefit of all people, rich or poor. • The socialists wanted to eliminate profit motive and competition. • Believed everyone, not just capitalists and factory owners, had a right to share in the profits.

8. Distribution of income is based on individual merit or individual contribution. • Each worker receives wages and benefits according to the quantity and value of the labor that he or she contributed. • workers of high productivity receiving more wages and benefits than workers of average productivity, and substantially more than workers of low productivity. • An extension of this principle could also be made so that the more difficult one's job is - whether this difficulty is derived from greater training requirements, job intensity, safety hazards, etc. - the more one is rewarded for the labor contributed.

9. Socialists generally share the view that capitalism concentrates power and wealth within a small segment of society that controls the means of production and derives its wealth through a system of exploitation. • This creates a stratified society based on unequal social relations that fails to provide equal opportunities for every individual to maximize their potential • and does not utilize available technology and resources to their maximum potential in the interests of the public, and focuses on satisfying market-induced wants as opposed to human needs. • Socialists argue that socialism would allow for wealth to be distributed based on how much one contributes to society, as opposed to how much capital one holds.

10. Utopian Socialists • Believed that people could live peacefully with each other in small cooperative settlements in which everyone would work for the common good. • They would own all the means of production and share the products. • They worked out plans for model towns and encouraged people to set them up.

11. Robert Owen (1771-1858) • Most influential utopian socialist • Believed that people who lived in a good environment would stop acting selfishly. • Purchased a spinning mill • Felt responsible for his workers and spent much time and money to make their lives happier and more secure • Felt workers should not rely on employers • Promoted unions • “villages of cooperation” • Unemployed would be self-supporting instead of relying on aid. • Lived in the United States (1825-1829) • Tried to set up cooperative communalities run along socialist lines • UNSUCCESSFUL

12. Karl Marx • Believed the utopian socialism was impractical • Said the entire capitalist system should be destroyed • Marx and Friedrich Engles • Published • The Communist Manifesto (1848) • View of human history • “The history of all hitherto existing society is the history of class struggles”

13. “Free man and slave, patrician and plebeian, lord and serf, guild master and journeyman, in a word, oppressor and oppressed, stood in constant opposition to one another, carried on an uninterrupted, now hidden, now open fight, a fight that each time ended either in a revolutionary reconstitution of society at large or in the common ruin of the contending classes.”

14. Karl Marx • Each stage of history • involved inequality, and therefore struggle, between those who owned property and those who did not. • Argued that all wealth is created by labor • Under capitalism • Labor receives only a small fraction of the wealth it creates • Most of the wealth goes to the owners in the form of profits • RESULT • Unequal distribution of wealth

15. Karl Marx’s PREDITICTION • There will be two classes • Few capitalists • Vast mass of workers • Capitalists would continue to amass wealth while driving the working class deeper and deeper into poverty. • The working class would unite and seize power in a socialist revolution. • Socialist Revolution • 1) Revolutionaries • Take control of the government • Many people would not accept the change to socialism at first • 2) After people learned the benefits of working together they will be in favor of socialism

16. Karl Marx • Believed in a classless society • “everybody worked together cooperatively” • called pure communism • Each person would contribute what he/she could, and receive what he/she needed. • “From each according to his abilities, to each according to his needs.”

17. Communism • Also known as authoritarian socialism • Believe that violent revolution was required to get rid of capitalism • Only way to establish governments that owned the means of production • And controlled all economic planning • Democratic socialism • Believed that socialism could develop through • Education • Democratic forms of government • Reason: when enough people became educated about socialism • They would elect socialist representatives to government. • People retained partial control over economic planning • Through election of officials • Individuals can own private land • Government owns at least some of the means of production.

18. 2- Minute Drill • 1) Socialism means the ____________ own the means of production and operate them for the benefit of all people, rich or poor. • 2) ________________ believed that people could live peacefully with each other in small cooperative settlements in which everyone would work for the common good. • 3)Who was the most influential utopian socialist? • 4) Would Karl Marx be a promoter of Communism or Democratic socialism? • 5) Karl Marx believed in a _______________.