1. Chapter 22 Section 5 Socialism

2. Socialism The uneven distribution of wealth was making people think that laissez-faire capitalism was not the greatest idea Some believed that the only way to distribute wealth more fairly was to change the ownership and operation of the {means of production- the capital and equipment used to produce and exchange goods} Some of these reformers supported a system called {socialism where the government owns the means of production and then operates them to benefit all people. This way everyone, not just capitalists and owners, shared in profits} Socialists believed that ever one could live peacefully with each other and work for the common good of the community sharing all the products produced

3. Robert Owen One of the most influential socialists was Robert Owen, the manager of a cotton mill and the owner of a spinning mill {Owen believed that if people lived in a good environment that they would cease to be selfish} Owen built homes, set up schools and made food and clothing available to all of his workers. He also encouraged them to set up unions He set up “villages of cooperation” in which the unemployed would be self sufficient and not relying on the government for help In the late 1820’s Owen lived in the U.S. and tried to set up a similar system but it did not succeed.

5. The Theories of Karl Marx Karl Marx believed that socialism was impractical He stated that the entire capitalist system should be brought down and that all great changes started with the changes in economic system Together with Friedrich Engles, Marx published the Communist Manifesto in 1848 where they stated that all through history there has been a struggle of inequality between the “rich” and the “poor” He argued that all wealth is created by labor, and under capitalism the working class, or proletariat, only receives a small percentage of the wealth that it creates

6. “...In short, the Communists everywhere support every revolutionary movement against the existing social and political order of things. In all these movements, they bring to the front, as the leading question in each, the property question, no matter what its degree of development at the time. Finally, they labour everywhere for the union and agreement of the democratic parties of all countries. The Communists disdain to conceal their views and aims. They openly declare that their ends can be attained only by the forcible overthrow of all existing social conditions. Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win.” -Karl Marx excerpt taken from The Communist Manifesto

7. Continued…. It was predicted that as the capitalists got richer and the proletariat would be driven deeper and deeper in to poverty This would result in an enormous revolution by the working class After the inevitable rebellion and overthrow of the capitalists, a new society would emerge in which each person would contribute what they could and everyone would get what he or she needed

8. Variation of Socialism The theories of Marx about overthrowing capitalism and establishing a government that regulates all aspects of the economy is called communism Another socialist group believed the same effect of equality could happen gradually and without violence by means of democratic socialism. Under this system as people became more educated they would elect socialist representatives to the government. Then that government would then take over the means of production peacefully Unlike communism though, the people would retain partial control over the economy with the ability to elect officials

9. Review Questions What are the capital and equipment used to produce and exchange goods In socialism who owns the means of production and who shares in profits? Who believed that if people lived in a good environment that they would cease to be selfish

10. In honor of Karl Marx’s fabulous multi- colored, extra bushy crumb catcher. We’ll end with some new weird beards