New Ways of Thinking Economics (Ch23) Capitalism and Socialism

In your notes, define Capitalism : (Pg 511; Adam Smith) In your notes, define Socialism : (Pg 511)

As Capitalism increased, many were disturbed that only the few were profiting and most remained poor As Capitalism increased, many were disturbed that only the few were profiting and most remained poor Reformers wanted public ownership of the factories, so that all would benefit Reformers wanted public ownership of the factories, so that all would benefit

3 Types of Socialism

1. Utopia Robert Owen and Charles Fourier Robert Owen and Charles Fourier “ideal society” “ideal society” Owen was a factory worker who became manager by 19; created model city in New Lanark (Britain) Owen was a factory worker who became manager by 19; created model city in New Lanark (Britain)

Children under 10yrs. did not work in the factory but went to a free school Children under 10yrs. did not work in the factory but went to a free school Good factory working conditions, increased wages, limited price of goods Good factory working conditions, increased wages, limited price of goods Attempted to reform New Harmony, Indiana, but was not successful. Attempted to reform New Harmony, Indiana, but was not successful.

2. Democratic Socialism Some socialist reformers believed that workers should vote for socialism Some socialist reformers believed that workers should vote for socialism Workers organize political parties to achieve their goals Workers organize political parties to achieve their goals

Workers are informed of advantages and vote for the type of socialism Workers are informed of advantages and vote for the type of socialism Still practiced today in Germany, Sweden, and Israel, and the British Labor Party that ruled Britain for much of the 20 th century Still practiced today in Germany, Sweden, and Israel, and the British Labor Party that ruled Britain for much of the 20 th century

3. Scientific Socialism – Karl Marx Despised Capitalism Despised Capitalism Karl Marx believed that there was a need for a complete take over of Capitalism Karl Marx believed that there was a need for a complete take over of Capitalism

Required violence – the proletariat (working class-”have nots”) over the bourgeoisie (the “haves”) Required violence – the proletariat (working class-”have nots”) over the bourgeoisie (the “haves”) Goal was to set up a classless, communist society – this would mark the end of class struggles between wealthy and poor Goal was to set up a classless, communist society – this would mark the end of class struggles between wealthy and poor What were the failures of Marxism? (pg 513) What were the failures of Marxism? (pg 513)