Communism & Capitalism

1. Communism & Capitalism

5. Capitalism • An economic and political system in which a country's trade and industry are controlled by private owners for profit.

6. Basics of Capitalism: • Capitalism is said to promote economic growth and the overall standard of living. • In other words, capitalism creates CAPITAL (money) …and lots of it.

7. 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.

9. 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.

10. 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.

11. Capitalism Promoting private accumulation of wealth Advocating individual freedom in economic matters Inequality in distribution of wealth Enslaving the working class through economic policies and control of production Class differentiation Severe poverty Works by a “hidden disequilibrium” in the work we do what we get (salary) < what we give (labor)

12. Class struggle: a contradiction between those with wealth and those lacking it. This contradiction sustains the society while at the same time threatening to disintegrate it.

13. Hence Marx thinks that • The worker of the world has nothing to lose, but their chains, workers of the world unite. • There is a specter haunting Europe, the specter of Communism. • Revolutions are the locomotives of history.

14. Unrest and protest – • Long hours, low pay • Periodic unemployment • No Welfare State • No universal right to vote

15. Marx’s insight: It’s all about money

16. Some have it…… They are called capitalists (or the bourgeoisie)

17. Others don’t ….. They are called the workers (or the proletariat)

18. Capitalists and workers are thrown together into relations of production

19. They don’t get on too well

20. Capitalists want the maximum PROFIT – and the lowest costs

21. Workers want the highest wage for the least work

22. These two groups are locked in mortal combat

23. The Capitalists compete with each other. The successful capitalist’s get richer and richer

24. …and the failed capitalists fall down into the working class

25. The workers meanwhile are more and more exploited by the remaining capitalists – they get poorer and poorer

26. Marx said that eventually the workers will rise up in revolution against the capitalist class A new communist society will be created

27. Marx has a theory it’s because societies are always made from two parts

28. The Base The base is like the foundations of a building. Marxists say the economy (the means of production) is the base

29. And the superstructure The rest of the building which is built on the foundations The superstructure means all the other parts of society – culture, the state, education

30. The economic base determines (shapes) the superstructure

31. So this is called The base-superstructure model Superstructure Base

32. Social Control in capitalist society is achieved through ideology - ruling class ideology

33. The ruling ideas in any time are always those of the ruling class

34. The working class may suffer from false consciousness – not understanding their true class position

35. Not a bad theory – but there are several criticisms which can be made of it

36. It’s not all about money – this is economically reductionist e.g. what about ideas, culture, religion?

37. Marxism makes people appear to be dominated by structures Puppets or People with the ability to act?

38. Gender and Race blind - the only social groupings it seems to recognise are classes

39. Now – over to you – weigh it up. Like any theory it has good points and bad points - but hopefully you will find it can explain some things about your society ?

40. So…. • System of government is democratic • Property is privately owned • Driven by free enterprise • Wealth distributed unevenly • Education and health care provided by private entities • Freedom of the press Class distinctions: upper class, middle class and working class • Focus is on the individual and his/her own progress in life

41. The ideology of capitalism • People need freedom • When people compete against one another, they achieve greater things • Some people have more than others because they make better use of their abilities • Governments should not interfere with the rights of individuals to make their own living • The government should interfere in the economy as little as possible

42. Do you agree? Or disagree? • Based off of what you know, do you think Capitalism is a good idea? • If yes: explain why • If no: what are potential dangers of Capitalism?

43. The Beliefs of Communism • The rich get richer. • The poor get poorer. • People wanted to make everything equal.

44. Ideology of Communism • People need one another • When people work together as equals, they achieve greater things • "From each according to his ability, to each according to his needs" • No-one should have more than anyone else - everybody's needs are equally important • Governments should make sure that everyone's needs are being met • There is central control of the economy -

45. 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. • If anything is certain, it is that I myself am not a Marxist. ( Marx)

47. Communist Manifesto • Abolition of property • Heavy, progressive taxes • Abolition of inheritance • Confiscation of property of all emigrants and rebels • Central banking • State-controlled communication and transportation • State-controlled education of the children

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

49. Read p 2 from the course pack and answer what caused the alianation for workers during the times of the Industrial Revolution?

50. So… • System of government is totalitarian • Property is owned by the state • No free enterprise is allowed • Wealth distributed equally • Education and health care provided by the state • Press controlled and owned by the state • Classless society: all members of society are considered to be equal • Focus is on the progress of the community as a whole - See more at: http://www.sahistory.org.za/article/capitalism-vs-communism-and-russian-revolution-grade-11#sthash.Zd9dtC7V.dpuf