1. Aim: Explain the origins and main concepts of Socialism & Marxism

2. The Rise of Socialism
In contrast to laissez-faire philosophy, other theorists believed that government should interfere
Late 1700’s: Philosopher Jeremy Bentham introduced philosophy of utilitarianism:
People should judge ideas, institutions, and actions on the basis of their utility, or usefulness
Argued that government should try to promote the greatest good for the greatest number of people
Others sought to offset ill effect of industrialization with Socialism
Factors of production are owned by public
Government control of economy would end poverty and promote equality 2

3. Marxism: Radical Socialism
German journalist Karl Marx introduced world to radical socialism
Called Marxism
Outlined ideas in pamphlet called Communist Manifesto
Argued that human societies have always been divided into warring classes
While wealthy controlled the means of producing goods, the poor performed backbreaking labor under terrible conditions
Marx predicted that the workers would overthrow the owners 3

4. The Future According to Marx
Marx believed that the capitalist system would eventually destroy itself in the following ways:
Factories would drive small artisans out of business
Leaves small number of manufacturers to control all the wealth
Large proletariat (workers) would revolt & seize the factories
State or government would wither away as a classless society developed
Marx final phase called Communism
Form of complete socialism
Where the means of productions (land, mines, factories, railroads, & business) would be owned by the people
All goods or services would be shared equally 4