1. Communism, Socialism and Capitalism What’s the difference?

2. Capitalism Economic system in which businesses, industries and resources are privately owned Competition among businesses Freedom of choice Possibility of profits “Market Economy” = Capitalism

3. Capitalism Pros Good products because of competition Easier to find a job Technological advances (due to a desire for profits) Cons Economic inequality (rich and poor) Environmental destruction (profit over environment) Profit over people

4. Capitalism Pure capitalism would have no government interference However…some government interference required to: Avoid monopolies Keep things “fair” Establish minimum wage

5. Rock, Paper, Scissors---- Capitalism! Each person gets 2 paperclips Rock, paper, scissors (no lizard or Spock) Winner gets a paperclip from loser If you lose all your paperclips you become a worker for the person that you lost to. Now if you win a match the paperclip goes to your boss. If you gain two victories for your boss, you are now free and can start your own business again—with 1 paperclip.

6. Karl Marx German, 1818-1883 He and co-author Friedrich Engels wrote several books which brought about modern ideas of socialism and communism The Communist Manifesto Capital

7. Definitions Bourgeoisie: Middle Class/Upper Class The class that is primarily concerned with property, money and respectability Proletariat: Working class Those who don’t own property or capital and must work to survive

8. Marx’s Ideas: Societies go from one economic stage to another Most societies will eventually reach the Capitalism Stage However, once they reach capitalism and have been there for a long time, the working class will grow restless. They’ll be tired of working so hard to support the upper/middle class. Marx believed that the working class was exploited by the property and factory owners Eventually, the working class will be so fed up with capitalism they will want a change. His stages of change go: CapitalismCommunismSocialism

9. The government or the community as a whole owns and controls the economy Money made in the economy goes into one big pot instead of to individuals or corporations (like it does with capitalism) “From each according to his ability, to each according to his deeds”. People get paid for quantity and quality of work Many socialists believe that society can go peacefully from Capitalism to Socialism

10. Communism communism: The government owns and controls the economy “From each according to his ability, to each according to his needs” Property is distributed by need, not by how much you work or don’t work Private property eliminated Communism: All economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party.

11. Communism, cont’d Communists believe that society cannot go from capitalism to socialism to communism without an armed and violent revolution The revolution usually puts a totalitarian leader in charge That leader is “supposed” to only be in power long enough to build up a communist society and allow the people to take control. However, since the leader is totalitarian, they like to keep their power and run the state how they want. This is one key reason why Communist societies are so repressive for the people that live under them.

12. Current and Former Communist Countries Orange: Former Red: Current