The Political and Economic Theories of Capitalism and Socialism With emphasis on Adam Smith and Karl Marx.

Adam Smith ( ) British philosopher and economist. Father of Modern Economics.

WEALTH OF NATIONS Wrote the Wealth of Nations. (First published in 1776) Wrote the Wealth of Nations. (First published in 1776) First comprehensive description of the economic system of capitalism. First comprehensive description of the economic system of capitalism. It discusses how wealth is distributed and produced. It discusses how wealth is distributed and produced. Smith stated that capitalism allowed for individuals who wanted to accumulate wealth the opportunity. Smith stated that capitalism allowed for individuals who wanted to accumulate wealth the opportunity.

Capitalism

Economic system in which private individuals and business carry on production and exchange of goods and services through a network of prices and markets. Economic system in which private individuals and business carry on production and exchange of goods and services through a network of prices and markets. Primarily European in its origins. Primarily European in its origins. The term was first introduced in the mid- 19 th century by Karl Marx (founder of communism) The term was first introduced in the mid- 19 th century by Karl Marx (founder of communism)

KARL MARX ( ) German economic and political philosopher. German economic and political philosopher. Most known for being the co-author of the Communist Manifesto along with Freidrich Engels Most known for being the co-author of the Communist Manifesto along with Freidrich Engels Founder of scientific communism. Founder of scientific communism.

Communist Manifesto Was a propaganda pamphlet. Was a propaganda pamphlet. States the basic beliefs of Communism. States the basic beliefs of Communism. The basis for the theories state that history can be viewed in terms of a class struggle. The basis for the theories state that history can be viewed in terms of a class struggle. Between the Bourgeoisie (owners of factories and employers) and the Proletariat (the wage laborers). Between the Bourgeoisie (owners of factories and employers) and the Proletariat (the wage laborers).

Cont… Marx felt that in order for the proletariat to rise up and take control of the government, it would have to unite and form its own class to overthrow the government. Marx felt that in order for the proletariat to rise up and take control of the government, it would have to unite and form its own class to overthrow the government. Centralized property and government and the absence of classes became the basis of communism. Centralized property and government and the absence of classes became the basis of communism.

COMMUNISM

As a political movement, communism sought to overthrow capitalism through a workers' revolution and establish a system in which property is owned by the community as a whole rather than by individuals. As a political movement, communism sought to overthrow capitalism through a workers' revolution and establish a system in which property is owned by the community as a whole rather than by individuals.capitalism In theory, communism would create a classless society of abundance and freedom, in which all people enjoy equal social and economic status. In theory, communism would create a classless society of abundance and freedom, in which all people enjoy equal social and economic status.

In practice, communist regimes have taken the form of coercive, authoritarian governments that cared little for the plight of the working class and sought above all else to preserve their own hold on power. In practice, communist regimes have taken the form of coercive, authoritarian governments that cared little for the plight of the working class and sought above all else to preserve their own hold on power. As the Industrial Revolution advanced, socialist critics blamed capitalism for creating a new class of poor, urban factory workers who labored under harsh conditions, and for widening the gulf between rich and poor. As the Industrial Revolution advanced, socialist critics blamed capitalism for creating a new class of poor, urban factory workers who labored under harsh conditions, and for widening the gulf between rich and poor.Industrial RevolutionIndustrial Revolution

PROS AND CONS OF CAPITALISM

PROS AND CONS OF COMMUNISM