Capitalism versus Marxism 2 Economic Ideas that come out of the Industrial Revolution

Capitalism

I. What is Capitalism? An economic system Money invested in business w/ goal of making a profit Economic system of: America, Britain, France, Canada

II. Basic Concept of Capitalism Capitalism based on “Laissez-faire” Translated: “to let be” Idea: Allow the owners of factories or businesses to establish working conditions Key: No government control or regulation How will this be best for the people of Britain?

III. Creator of Capitalist System Adam Smith (1723-1790) Wrote The Wealth of Nations, published in 1776 Key Ideas of the book: Free market (no gov’t rules or laws) Economy would be guided by an “invisible hand” Division of labor Smith argued that humans are greedy & selfish Competition would benefit society as a whole

V. Two Overall Arguments of the Capitalistic Thinkers: Opposition to government intervention in the economy Minimum wage laws & regulation of working conditions would lower profits

Communism/Marxism

Marxism An economic & philosophical system Opposes ideas of capitalism Arose due to poor conditions of the Industrial Revolution Also known as: Socialism, Communism

Basic Ideas of Marxism No private property All property is to be owned collectively as a society Value of what is produced goes to the worker All goods (money, goods, products) is to be shared equally

Creators of Marxist System Karl Marx (1818-1883) & Friedrich Engels (1820-1895) Both were German Both lived during the Industrial era As a result, they became very angry about: Exploitation or mistreatment of workers Unequal distribution of wealth Co-authored The Communist Manifesto, published in 1848

The Communist Manifesto Key Ideas of the book: Industrial society had two classes Bourgeoisie – middle class, the “haves” Proletariat – working class, the “have-nots” Marx & Engels predicted that: Wealth/power is controlled by middle class, or the bourgeoisie (factory owners, industrialists, etc) The working class, or the proletariat would grow angry at their mistreatment The working class would unite & overthrow the middle class in a violent revolution Workers would seize control of factories All wealth & resources would distributed equally A classless society would emerge Eventually, all resources (land, factories, mines, businesses) would be owned & controlled by the people This is known as Communism

Long-Term Effects of Marxism Ideas inspired future leaders & sparked revolutions Russia: (1917-1991) Vladimir Lenin & Joseph Stalin Cuba: (1959 – present) Fidel Castro & Ernesto ‘Che’ Guevara North Vietnam: (1954 – present) Ho Chi Minh China: (1949 – present) Mao Zedong North Korea: (1948 – present) Kim Il-Sung & Kim Il-Jong