CAPITALISM V COMMUNISM NEW WAYS OF THINKING CAPITALISM V COMMUNISM

CONGRESS OF VIENNA

The Concert of Europe 1817 Series of alliances to protect royal power Balance of Power Protect empires

Nationalism Creates new political groupings Conservatives - wish to preserve the old order Social Hierarchy Religion Rural

Liberals- wish to give power to the middle class with a limited suffrage. Laissez-faire Bourgeoisie

Nationalists- those who felt that people of one race and culture should all be contained in one political entity called a nation-state

Industrialization led to new ways of thinking about government Laissez Faire economists argued that government should leave business alone to operate “naturally”

Adam Smith was the leading laissez faire economist wrote The Wealth of Nations believed government should not put limits on business believed this freedom would help a nation’s economy grow

Smith and others supported an economic system called Capitalism "A free market, the unregulated exchange of goods and services ­ would come to help everyone, not just the rich." –Adam Smith

In Capitalism…. Individuals owned the means of production People invest money in business in order to make a profit – “the profit motive” Competition creates efficiency controlled by supply and demand

Thomas Malthus Population and Food Supply "The power of population is greater than the power of  the earth to produce subsistence for man."

David Ricardo ”iron law of wages” “There can be no rise in the value of labor without a fall of profits.”

Utilitarianism John Stuart Mills Jeremy Bentham

Utilitarianism felt that an idea or practice was good only if it was useful The Utilitarians thought that the low pay and poor housing workers received were unfair consequences of capitalism

They thought government should work to end great differences in wealth between people Jeremy Bentham=“The greatest good for the greatest number”

RICARDO-”IRON LAW OF WAGES” MALTHUS- POPULATION ALWAYS >FOOD SUPPLY CAPITALISM RICARDO-”IRON LAW OF WAGES” MALTHUS- POPULATION ALWAYS >FOOD SUPPLY UTILITARIANISM-GREATEST GOOD FOR GREATREST NUMBER SUPPLY AND DEMAND PRIVATE OWNERSHIP OF MEANS OF PRODUCTION

The Rise of Socialism The idea that government should control the means of production for the good of the people

Utopian Socialists Socialism achieved by the moral persuasion of capitalists to surrender the means of production peacefully to the people. Robert Owen Charles Fourier

Robert Owens "In those characters which now exhibit crime, the fault is obviously not in the individual, but the defects proceed from the system in which the individual was trained."

MARXISM Socialist theory that capitalist and proletarians(working class) will inevitably fight a class war, ending in working class victory Marxists believe that society is governed by economic forces

MARXISM SOCIAL DEMOCRACY COMMUNISM SOCIALISM UTOPIAN MARXISM (SCIENTIFIC MARXISM SOCIAL DEMOCRACY COMMUNISM

Karl Marx The Communist Manifesto-1848 vanguard of the proletariat “Workers of the world unite” Das Kapital -1867 communism-form of socialism where a highly advanced group forces the socialist revolution to come early

“The inevitable struggle between social classes would lead to the creation of a classless society where all means of production would be owned by the community.”