1. Capitalism Gives Rise to Socialism and Communism

2. Industrial Revolution
Market economies started in Europe in the 1700s and grew rapidly. This resulted in the Industrial Revolution.
New inventions
Improved manufacturing
Capitalism is born (free market economy)
Industrial Revolution

3. Pros & Cons of the Industrial Revolution
Harsh working conditions
Poor stay poor
Pros
More goods
Better goods
Rich get richer
Pros & Cons of the Industrial Revolution

4. The Communist Manifesto
1848, Karl Marx & Friedrich Engels
Proposed an overthrow of capitalism
Supported Socialism- a philosophy that calls for property owned by society for the benefit of all
The Communist Manifesto

5. Steps to Socialism Workers revolt National ownership of industry
More equal distribution of money
Everyone owns everything
No more class distinctions
All of this equals the political system called communism.
Steps to Socialism

6. Russia 1917 First successful communist revolution
A strict government used force to put its ideas into place
Renamed Union of Soviet Socialist Republic (USSR or Soviet Union for short)
First modern command economy
Russia 1917

7. USSR Central planning committees made every economics decision
What to produce?
How to produce it?
Who gets it?
Meant to ensure equity & stability
USSR

8. Planning committee could not keep track of everything
Mole skin example (prices were set too high and too many pelts were collected and sat rotting in warehouses)
Shortages & long lines were common
Workers were not rewarded for good work or ideas = no improvements, poor quality work
Downfall of Communism

9. The bottom line Equity- people were treated fairly
Security- everyone was taken care of and paid a fair wage
People had money and were treated fairly BUT… there were few products and even fewer good products to purchase. People had money but had to live like they were poor.
The bottom line

10. Your Assignment
Make a poster split in half. Half of the poster will tell what Marx and Engels envisioned for communism. The other half will show what the reality of communism in the USSR was like. 4
You show at least 4 step leading to socialism 3
You show 3 steps leading to socialism 2
You show 2 steps leading to socialism 1
You show 1 step leading to socialism
You none of the steps leading to socialism
You show at least 3 problems that resulted
You show 2 problems that resulted
You show 1 problem that resulted
You show none of the problems that resulted
Pictures clearly show the steps and problems
Pictures are drawn but are not clear
You did not include pictures
You have an appropriate title
No appropriate title