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 Would it be better to live in a society where everyone was given a share of profits by the owner of the company, made the same amount of money as everyone else, making all people equal or would it be better to live where you can choose what you want to do, everyone makes different amounts of money, and not everyone can afford the same things as everyone else? Explain why you chose the one you did.

 What is capitalism?  What is socialism?

 Capitalism  private ownership of the means of production and distribution of goods  free competitive market and motivation by profit  money is used to make more money.  Socialism  means of production and distribution are controlled by the people  operated according to equity and fairness rather than market principles  owners share profits with workers.

 Industrialization gave some a higher standard of living, but struggling workers turned to trade unions or socialism to improve their lives  Problems: overcrowding, slums, long hours, mind-numbing tasks

 Fewer hours, better benefits, safe working conditions  Trade Unions  Radicals: abolish capitalism, replace with socialism  One form of Marxist socialism: communism

 1848 The Communist Manifesto  Karl Marx and Friedrich Engels  Blamed capitalism for poor conditions in factories  All of world history was a “history of class struggles.”  Oppressor  owns means of production (land, raw materials, money, etc) They have all the power  Oppressed  owns nothing, and has to depend on the oppressor

 Bourgeoisie  middle-class and oppressors  Proletariat  worker-class and oppressed  Struggle between two would lead to revolution  Proletariat would win and establish a dictatorship  Final revolution would produce a classless society

 German Social Democratic Party (SPD)  1875  Advocated revolution  Passed laws that would improve conditions for working class  Four million votes in 1912 elections  Largest party in Germany ▪ German constitution gave greater power to the upper house and the German emperor so the SPD didn’t have the changes it really wanted

 Second International  Association of national socialist groups that would fight capitalism worldwide  1889  Leaders of various socialist parties throughout Europe

 Pure Marxists  capitalism could only be defeated by violent revolution  Revisionist Marxists  workers must continue to organize in mass political parties and achieve goal by working within democratic system

 Unions  had to get the employer to recognize its right to represent workers in collective bargaining  Process whereby union representatives negotiate with employers over wages and hours  Right to strike  Union calls on its members to stop work in order to pressure employers to meet their demands for higher wages or improved factory safety  At first, laws against striking  Great Britain  right to strike 1870s