What are the main differences between communism & capitalism? The Rise of Communism What are the main differences between communism & capitalism? Frederick Engels Karl Marx

A Radical Form of Socialism In response to Capitalism, a new economic system called socialism gains popularity Socialists argued factors of production should be owned by the public and operate to benefit everyone Socialism would end poverty, promote equality & create social justice 1849: Karl Marx (German journalist) & Frederick Engels (son of factory owner) wrote a pamphlet called The Communist Manifesto Manifesto calls for a more radical & complete form of socialism, called communism Marx & Engels say capitalism has created division in society owned by

Marx & Engels argue owners control “means of production” while the workers control nothing, which creates two warring classes: owners known as the bourgeoisie (“haves”) 2. workers known as the proletariat (“have-nots”) Marx states proletariat will violently rise up against the bourgeoisie Workers will have a worldwide revolution & when they control the means of production, the world will have equality

“The proletarians have nothing to lose but their chains “The proletarians have nothing to lose but their chains. They have the world to win. Workers of the world unite”. - Karl Marx Capitalism Communism Individuals own property & the means of production People (community) should own property & means of production Businesses follow their self-interest thru competition, causing good wages. Self interest leads to greed, so businesses takes advantage of workers Consumers determine what products are needed. Supply & demand effects prices Goods should be divided according to people’s needs, public sets the price. Government should not interfere in the economy Community or Govt should plan the economy

Communism Capitalism Communism Capitalism Communism What is communist or capitalist? A public owned phone company has decided to raise your rates: You are a farmer and sell your food to either Albertson’s or Vons, depending on who pays more: I cannot afford health insurance and public tax money will pay my medical bills: McDonald’s introduces a $.99 cheeseburger, so Burger King does the same thing: Government plans on needing 100 cell phones this year Communism Capitalism Communism Capitalism Communism