Capitalism v. Communism

Karl Marx & Friedrich Engels• Together wrote The Communist Manifesto (1847);

statement of aims of Communist Party.• Marx: father of Communism; followers called

Marxists.• Marx and Engels studied the history of world’s

economics (way power, industry and finances are controlled).

• Saw countries developed in stages.

Stage 1: Primitive Communism

• How humans first lived together: tribes.• Primitive = basic• Communism = shared (food, jobs,

belongings)• No one owned land… for a while, until a

group comes to power – leads to Feudalism.

Stage 2: Feudalism• King or emperor becomes ruler of all people• People left uneducated and told God chose the

king to rule; church backs up king.• King gives land and privileges to “nobles” who

rule the people for him.• Trade develops: some people get richer – leads to

Capitalism.

Stage 3: Capitalism

• Business owners get richer as workers do all the hard work (labor).

• Creates large working class who become angry.

• Working class organizes and demands change (revolution) – leads to Socialism.

Stage 4: Socialism

• In Socialist revolution, all rulers (kings, churches, capitalists) are eliminated.

• Workers take control of country to produce things for everyone.

• Because nothing made for profit, all people benefit from education and health.

• These ideas spread across the world to create – Communism.

Stage 5: Communism

• Everybody works together for benefit of everyone.

• No war, military, police; no money, social classes, state.

What is Communism?

• Social, political, and economic system in which goods are owned in common and available to all.

What is Capitalism?

• Economic and political system based on private ownership and on investment of money in business in order to make profit.

What is Imperialism?

• An unequal economic, cultural, and territorial relationship between states based on domination and subordination.

What is Oppression?

• The exercise of authority or power in a burdensome, unjust or cruel manner.

Communism• Advantages:

– Everyone gets something (equal)– No unemployment– Healthcare for all citizens– Cooperation of the people (work for benefit of country)

• Disadvantages:– Abuse of power– Restrictions (no freedom of speech, press, religious

practice)– Censorship– Against ethnic diversity– Government controls property– Individual doesn’t compete

Capitalism• Advantages:

– Individuals can own property– Individuals can prosper/compete for wages– Freedom of speech, press, religion– Individual work has value– Diversity has value

• Disadvantages:– Poverty– Lack of healthcare for all– Monopolies: control too much business– Inequalities (rich/poor; haves/have nots)