1. New Ways of Thinking
Chapter 5 Section 4

2. New Ways of Thinking
Thomas Malthus: British economist-Belived poverty was unavoidable, because the population was increasing faster than the food supply.
In the early 1800’s, middle class business leaders embraced laissez-faire economics-believed a free market would help everyone.

3. Socialism
Utilitarianism: which stressed that the goal of society should be “the greatest happiness for the greatest number of its citizens.”
To end poverty and injustice, some people favored socialism, a radical solution whereby people, not the government, own and operate business, or the means of production.

4. Socialism Cont. Early socialists were known as Utopians.
They set up communities where all work was shared and property owned together.
Robert Owen was a Utopian who supported labor unions and the laws that limited child labor.
He set up a model community in New Lanark Scotland.

5. Communism
German philosopher Karl Marx condemned Utopian ideas as unrealistic idealism.
He supported Communism, a form of socialism where the struggle between classes leads to the creation of a classless society and to the end of capitalism, which meant all means of production would be owned by the community and not just certain individuals.

6. Communism Cont.
In the 1860’s, Germany adapted Marx’s beliefs to form a social democracy, or a political ideology in which there is a gradual transition from capitalism to socialism.
In the late 1800’s, Russia embraced Marxism and the Revolution of 1917 set up a communist government.
But by the end of the 20th Century, the failures of these governments showed the flaws in Marx’s ideas.
Nationalism triumphed over the communist movement and today almost all countries include elements of capitalism.