1. Challenging Capitalism
Socialism and
Communism

2. Key Terms to Remember:
Socialism: a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Communism: a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
Marxism: the political, economic, and social principles and policies advocated by Karl Marx.
Proletariat: Workers or working-class people, regarded collectively (often used with reference to Marxism).
Bourgeoisie: In Marxist contexts, the capitalist class who own most of society's wealth and means of production.

3. Impact of Industrialization on Workers
What do you notice about each of the following images?

4. Impact of Industrialization on Workers

5. Impact of Industrialization on Workers

6. Impact of Industrialization on Workers

7. Impact of Industrialization on Workers

8. Karl Marx: Who was he? Political and economic philosopher
Wrote to influential works during his lifetime:
The Communist Manifesto Das Kapital (Capital: Critique of Political
Economy)

9. Karl Marx: Who was he?
Born into a prosperous middle-class family in Trier, Prussia (West Germany) in 1818.
Enrolled at University of Bonn in 1835 where he studied law.
Marx’s father sent him to the University of Berlin in 1839.
Emigrated to Paris in 1843.
Met lifelong friend and financial patron, Friedrich Engels,
the son of a wealthy cotton manufacturer.

10. Karl Marx: Key Ideas and Philosophies
Marx wrote, “The history of society is the history of class struggles."

11. Karl Marx: KEY Ideas and Philosophies
Believed that economic systems go through historic cycles
Said that over time, an economic system becomes rigid and can’t adjust to new technologies, so a new system emerges
New system has new class relations and oppression
Believed there would someday be a perfect classless society with no further cycles
*Primitive communism gave way to feudal economy
*That economy was broken down with growth of towns, transportation, manufacturing, middle class
*Two classes of Industrial Capitalism emerged:
1) Proletariat
2) Bourgeoisie
Tension due to Industrial capitalism lead to a revolution that opened the door to socialism and communism

12. Stages of Economic History

13. Communist Revolution as Inevitable
Marx attempted to show that throughout history one economic class always oppressed another: "Freeman and slave, patrician and plebeian, lord and serf, etc..."
But eventually the oppressed class will rise up, overthrow its masters, and create an entirely new society. (Stage 1)

14. Communist Revolution as Inevitable
Marx believed that wealthy, industrial capitalists used their private property and profits ($ or capital) to oppress their workers.
Marx called this (wealthy capitalist) class the bourgeoisie
Marx named the working class (the oppressed) the proletariat.

15. Communist Revolution as Inevitable
Marx said communists best understood the class struggle.
They would unify the proletariat (workers), lead it in a revolution, and take control of the government. (Stage 2)

16. Communist Revolution as Inevitable
After the revolution, the new proletarian government would take possession of all private property like factories, mines, farms, and other businesses. (Stage 3)
The government would now operate all of these!
Marx said, “When the proletariat finally controlled economic production then all social classes would disappear and class struggles would end. In this "communist phase," there would no longer be a need for a government. It will now be “Heaven on Earth”. (Stage 4)

17. Communist Revolution as Inevitable
Marx expected that the proletarian revolution would soon occur in Europe and spread worldwide. He ended the Communist Manifesto with these rousing words:
“Let the ruling classes tremble at a Communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win. Workers of the world unite!”

18. Considering the Thoughts of Karl Marx

19. From Karl Marx (Communist Manifest, Ch. 2)
“We have seen above, that the first step in the revolution by the working class is to raise the proletariat to the position of ruling class to win the battle of democracy.
The proletariat will use its political supremacy to wrest, by degree, all capital from the bourgeoisie, to centralise all instruments of production in the hands of the State, i.e., of the proletariat organised as the ruling class; and to increase the total productive forces as rapidly as possible.
Of course, in the beginning, this cannot be effected except by means of despotic inroads on the rights of property, and on the conditions of bourgeois production; by means of measures, therefore, which appear economically insufficient and untenable, but which, in the course of the movement, outstrip themselves, necessitate further inroads upon the old social order, and are unavoidable as a means of entirely revolutionising the mode of production.”

20. From Karl Marx
“These measures will, of course, be different in different countries.
Nevertheless, in most advanced countries, the following will be pretty generally applicable.
1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all rights of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralisation of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.
6. Centralisation of the means of communication and transport in the hands of the State.

21. From Karl Marx
7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8. Equal liability of all to work. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
10. Free education for all children in public schools. Abolition of children’s factory labour in its present form. Combination of education with industrial production, &c, &c.”

22. From Karl Marx
“When, in the course of development, class distinctions have disappeared, and all production has been concentrated in the hands of a vast association of the whole nation, the public power will lose its political character. Political power, properly so called, is merely the organised power of one class for oppressing another. If the proletariat during its contest with the bourgeoisie is compelled, by the force of circumstances, to organise itself as a class, if, by means of a revolution, it makes itself the ruling class, and, as such, sweeps away by force the old conditions of production, then it will, along with these conditions, have swept away the conditions for the existence of class antagonisms and of classes generally, and will thereby have abolished its own supremacy as a class.
In place of the old bourgeois society, with its classes and class antagonisms, we shall have an association, in which the free development of each is the condition for the free development of all.”

23. Food For Thought…
Have we seen true communism as prescribed by Karl Marx?