1. Capitalism versus Marxism
2 Economic Ideas that come out of the Industrial Revolution

2. Capitalism

3. I. What is Capitalism?
An economic system
Money invested in business w/ goal of making a profit
Economic system of: America, Britain, France, Canada

4. II. Basic Concept of Capitalism
Capitalism based on “Laissez-faire” Translated: “to let be”
Idea: Allow the owners of factories or businesses to establish working conditions
Key: No government control or regulation
How will this be best for the people of Britain?

5. III. Creator of Capitalist System
Adam Smith ( )
Wrote The Wealth of Nations, published in 1776
Key Ideas of the book:
Free market (no gov’t rules or laws)
Economy would be guided by an “invisible hand”
Division of labor
Smith argued that humans are greedy & selfish
Competition would benefit society as a whole

6. V. Two Overall Arguments of the Capitalistic Thinkers:
Opposition to government intervention in the economy
Minimum wage laws & regulation of working conditions would lower profits

7. Communism/Marxism

8. Marxism An economic & philosophical system
Opposes ideas of capitalism
Arose due to poor conditions of the Industrial Revolution
Also known as: Socialism, Communism

9. Basic Ideas of Marxism No private property
All property is to be owned collectively as a society
Value of what is produced goes to the worker
All goods (money, goods, products) is to be shared equally

10. Creators of Marxist System
Karl Marx ( ) & Friedrich Engels ( )
Both were German
Both lived during the Industrial era
As a result, they became very angry about:
Exploitation or mistreatment of workers
Unequal distribution of wealth
Co-authored The Communist Manifesto, published in 1848

11. The Communist Manifesto
Key Ideas of the book:
Industrial society had two classes
Bourgeoisie – middle class, the “haves”
Proletariat – working class, the “have-nots”
Marx & Engels predicted that:
Wealth/power is controlled by middle class, or the bourgeoisie (factory owners, industrialists, etc)
The working class, or the proletariat would grow angry at their mistreatment
The working class would unite & overthrow the middle class in a violent revolution
Workers would seize control of factories
All wealth & resources would distributed equally
A classless society would emerge
Eventually, all resources (land, factories, mines, businesses) would be owned & controlled by the people
This is known as Communism

12. Long-Term Effects of Marxism
Ideas inspired future leaders & sparked revolutions
Russia: ( )
Vladimir Lenin & Joseph Stalin
Cuba: (1959 – present)
Fidel Castro & Ernesto ‘Che’ Guevara
North Vietnam: (1954 – present)
Ho Chi Minh
China: (1949 – present)
Mao Zedong
North Korea: (1948 – present)
Kim Il-Sung & Kim Il-Jong