1. Communism & Capitalism

2. Target : I will differentiate between communism and capitalism and examine their advantages and disadvantages

5. Capitalism
An economic and political system in which a country's trade and industry are controlled by private owners for profit.

6. Basics of Capitalism:
Capitalism is said to promote economic growth and the overall standard of living.
In other words, capitalism creates CAPITAL (money) …and lots of it.

7. What is capitalism? Economic system.
Believes in individual ownership and competition.
The theory is that when everyone is selfish, it benefits everyone.
Adam Smith is “the” capitalist.

9. What’s good about capitalism?
Freedom, choice.
You can work wherever, buy whatever, and pretty much do whatever.
If you’re successful, you can be very successful. Think Bill Gates.

10. What’s bad about capitalism?
No “safety net.”
If you’re unsuccessful, you can be very unsuccessful. Think about the poor.
Big gap between rich and poor.

11. So…. System of government is democratic Property is privately owned
Driven by free enterprise
Wealth distributed unevenly
Education and health care provided by private entities
Freedom of the press Class distinctions: upper class, middle class and working class
Focus is on the individual and his/her own progress in life - See more at:

12. The ideology of capitalism
People need freedom
When people compete against one another, they achieve greater things
Some people have more than others because they make better use of their abilities
Governments should not interfere with the rights of individuals to make their own living
The government should interfere in the economy as little as possible

13. Do you agree? Or disagree?
Based off of what you know, do you think Capitalism is a good idea?
If yes: explain why
If no: what are potential dangers of Capitalism?

14. The Beliefs of Communism
The rich get richer.
The poor get poorer.
People wanted to make everything equal.

15. Ideology of Communism People need one another
When people work together as equals, they achieve greater things
"From each according to his ability, to each according to his needs"
No-one should have more than anyone else - everybody's needs are equally important
Governments should make sure that everyone's needs are being met
There is central control of the economy -

16. What is communism? Economic system.
Believes in collective (group) ownership and a planned economy.
The theory is that everybody pools their resources and labor to evenly distribute everything.
Karl Marx is “the” communist.
If anything is certain, it is that I myself am not a Marxist. ( Marx)

18. Communist Manifesto Abolition of property Heavy, progressive taxes
Abolition of inheritance
Confiscation of property of all emigrants and rebels
Central banking
State-controlled communication and transportation
State-controlled education of the children

19. Marxism They believed they discovered an inevitable pattern
Marx and Engels studied the history of the world’s economies
Communism!!!!
Socialism
Capitalism
They believed they discovered an inevitable pattern
Feudalism
Basic Communism

20. Read p 2 from the course pack and answer what caused the alianation for workers during the times of the Industrial Revolution?

21. So… System of government is totalitarian
Property is owned by the state
No free enterprise is allowed
Wealth distributed equally
Education and health care provided by the state
Press controlled and owned by the state
Classless society: all members of society are considered to be equal
Focus is on the progress of the community as a whole - See more at:

22. Stage 1: Primitive Communism
This is how humans lived together before the emergence of large-scale agriculture.
Small hunting and gathering tribes
Everything was shared amongst the tribe-food, jobs, belongings.
No one owned land and no one is exploited for their labor.
Eventually one group comes to power which leads to Feudalism…

23. Stage 2: Primitive Communism - Feudalism
Under feudalism, a king becomes ruler over all the people. Exploitation begins.
The people are kept uneducated and told that god chose the king to rule. (?)
The king gives land and privileges to nobles who rule the people for him (?)
As trade develops, some people get richer. This leads to Capitalism…

24. Stage 3: Feudalism - Capitalism
Business owners or capitalists get richer while the workers do the work.
Capitalists get more power to serve their own interests.
Capitalism creates a large working-class of people who organize, create unions, and demand changes. This leads to Socialism…

25. Stage 4: Capitalism-Socialism
In the Socialist revolution all the rulers lose power, wealth, and privilege.
Workers take control of the country to produce things for everyone. No one is exploited.
Nothing is made for profit therefore all people benefit.
These ideas spread across the world to create Communism…

26. Stage 5: Socialism-Communism
Capitalists will put up a fight but the will of the people will always win.
Everyone now works together, war eliminated, and armies are obsolete.
Everything is provided by the people so $ becomes a thing of the past.
All human activity goes towards benefiting each other-allowing all to live their lives to the fullest.

29. Communism/Socialism: What’s the difference?
Socialism is, “from each according to their ability, to each according to their DEEDS.”
Socialism is the stage between Capitalism and Communism. It builds upon the previous system (Capitalism) by nationalizing the “means of production” (i.e. corporations, resources, banks, etc.), but not by making everyone equal. People are paid wages based on several factors (social need, difficulty, amount of schooling required, etc.), so not everyone will make the same wage.
Communism is “from each according to their ability to each according to their NEEDS.”

32. What’s good about communism?
Security, basic needs met.
Everyone would have a job, house, health care, etc.

33. What’s bad about communism?
Lack of choice
No reward for being a better worker or punishment for being a slacker.
Everyone expected to be the same.

34. How’s this related to the IndRev?
Adam Smith’s capitalism dominated the IndRev. Led to bad working conditions.
Karl Marx wrote about communism as solution to capitalism’s problems.
Marx said the workers would get fed up and overthrow their governments and start communism.

35. Advantages:
Everyone gets something (equal)
No unemployment
Healthcare for all citizens
Cooperation of the people (work for the country to benefit)
Disadvantages:
Abuse of power
Restrictions- no freedom of speech, press, no religious practices
Censorship
Against ethnic diversity
Government controls property- very little if any, could own private property
Individual doesn’t compete, in some ways lazy and does not need to strive for more

36. Advantages: Disadvantages: You can own property Individuals can
prosper/competition for wages
Freedom of speech, press, religion
Embrace ethnic diversity
Makes the individual work worth something
Disadvantages:
Poverty
Not everyone has healthcare
Monopolies- control too much business
Creates inequalities (ex: rich vs poor, have vs have not)

40. Do you agree? Or disagree?
Based off of what you know, do you think Communism is a good idea?
If yes: explain why
If no: what are potential dangers of Communism?