1. Communism & Capitalism

2. 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.

3. 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.

4. 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.

5. 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.

6. Communist Manifesto 1.Abolition of property 2.Progressive tax 3.Abolition of inheritance 4.Confiscation of property (no private ownership is allowed) 5.Central banking 6.State-controlled communication and transportation 7.State-controlled education of the children

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

8. Stage 1: Primitive Communism This is how humans lived together before the emergence of large- scale agriculture. Small hunting and gathering tribes Everything was shared amongst the tribe- food, jobs, belongings. No one owned land and no one is exploited for their labor. Eventually one group comes to power which leads to Feudalism…

9. Stage 2: Primitive Communism - Feudalism Under feudalism, a king becomes ruler over all the people. Exploitation begins. The people are kept uneducated and told that God chose the king to rule. (known as the Divine Right of Kings) The king gives land and privileges to nobles who rule the people for him (Royals support the king through taxes from people who are on the King provided land) Clergy is granted land for free, and pay no taxes (Support the “God wants that dude to be King” – concept) As trade develops, some people get richer. This leads to Capitalism… Economy based on individual ownership of goods and services.

10. Stage 3: Feudalism - Capitalism Business owners or capitalists get richer while the workers do the work. Capitalists get more power to serve their own interests. Capitalism creates a large working-class of people who do all the work, and a smaller “owner” group who reap all the profits. Owners are known as Bourgeoisie, working class are known as Proletariat. Working class eventually organize, start unions, demand fair wages, etc. Bourgeoisie pay off Gov’t for favorable business practices (Financial collapse of Wall Street). Gap between haves and have not’s widens workers revolt against ownership of large corporations for the exploitation of labor. This leads to Socialism… (attempt to remove the ability to have huge companies that exploit labor)

11. Stage 4: Capitalism-Socialism In the early stages of the Socialist revolution all the “means of production” companies are Nationalized (No private ownership of large production companies) Workers/Gov’t take control of the country to produce/provide things for everyone. No one is exploited. Nothing is made for profit therefore all people benefit. Think of Health Care – is it a universal right, and should profit be a part of it? These ideas spread across the world. The ability for individuals to “get rich” disappears. The good of the whole becomes more important than the advancement of the individual…eventually this becomes Communism…

13. Stage 5: Socialism-Communism Capitalists will put up a fight but the will of the people will always win. Everyone now works together, war eliminated, and armies are obsolete. Everything is provided by the people so $ becomes a thing of the past. (ultimate barter system) All human activity goes towards benefiting each other, allowing all to live their lives to the fullest. Companies work collaboratively for advancement rather than compete and keep secrets to gain an advantage

14. 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. Meritocracy? Communism is “from each according to their ability to each according to their NEEDS.”

16. What’s good about communism? Security, basic needs met. No poverty, no rich, no social class based on wealth. Everyone would have a job, house, health care, etc.

17. 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. Individuality loses its value.