6Capitalism Capitalism– ex. U.S.A. Laissez-faire Individual choice/ freedom of choiceIndividuals run the businessEconomic Classes: Rich and poor and middle-classCompetition makes goods better and cheaperGovernment: Democracy
10Socialism– doesn’t really exist Everyone agrees to share economyEveryone is equal in terms of moneyEach person will receive money according to how much they needNo competitionSocial Classes: NONEGovernment: Should be democracy, but dictator never stepped down
11Why no Socialism? In history, the dictator had NEVER stepped down! Problem with Marx’s theory, he didn’t take in to account the nature of man
12Communism Communism-- ex. N. Korea & Cuba Government controlled EconomyGovernment controls all business decisionsNo competitionEconomic Classes: Rich government and Poor citizens (proletariat)Government: Dictator
13History of Communism Industrialization led to 2 social classes Proletariat (working poor)Bourgeoisie (wealthy Industry owners)
19The 2 classes ClashKarl Marx theorized that the Proletariat would rise up against the Bourgeoisie in a civil war– Have’s vs. Have Not’sBourgeoisie would lose because they are much smallerProletariat would require a dictator to control the chaos that follows a civil warDictator would step downSocialism would ensueThe end of social classes
23The Communist Manifesto Seven Stages to the Establishment of Communism/ SocialismHistorical MaterialismTheory of SurplusStages in Economic DevelopmentClass StruggleUse of ForceDictatorship of the ProletariatEstablishment of Communism/ Socialism
24Historical Materialism Marx Theory: Events and Institutions are based on economic forces. The dominant economic class determines the rules and moral of Society.Objections to Marx: Too simple an explanation. Many other factors determine laws and morals; i.e. Catholic Church
25Theory of SurplusMarx Theory: Value of goods is based only on the labor of the workers. What they produce is sold for far more than they can make; the result= rich gets richer, poor gets poorer.Objections to Marx: Other factors add to the value of a product; materials, factories, ideas to help produce goods. In U.S. and Europe the poor is not getting poorer because of unions and labor laws.
26Stages in Economic Development Marx Theory: There are 5 stages, each superseding the previous stage. Therefore, eventually, Socialism will override Capitalism.Five Stages:Communal, Slave, Feudalist, Capitalist, SocialistObjections to Marx: The stages did not go in order in every culture, ex. China and Japan. There is no proof that Capitalism must fail, or that the next stage would be Socialism.
27Class StruggleMarx Theory: Historically, there are opressors and oppressed; bourgeoisie and proletariat. As bourgeoisie grow smaller and powerful, proletariat are treated worse causing them to rise-up.Objections to Marx: Marx did not consider the middle class when developing his theory. He made the assumption the middle class would be with the proletariat.
28Use of ForceMarx Theory: With the exception of some highly advanced democracies; i.e. the U.S. and G.B., force would be necessary to achieve socialism.Objections to Marx: Changes can be made peacefully.
29Dictatorship of the Proletariat Marx Theory: After the force (civil war/ revolution) a dictator will arise briefly until opposition is ended. Then classes will be abolished and a class-less society will emerge.Objections to Marx: Dictatorships do NOT end! This results in a “new” class that is similar to the bourgeoisie, and again proletariat are treated poorly. Ex. U.S.S.R., 50 + Years with a dictator.
30Establishment of Communism/ Socialism Marx Theory: During the Dictatorship, communism is established.Public ownership of production, distribution and consumption; eliminating competition and classes, No more class struggle.Work to ability and receive according to NEED.Objections to Marx: How do you determine need? Communists governments are strengthening with more regulations, not becoming socialist.