1. USSR

2. COMMUNISM OKAY – HERE IS WHERE WE PLAY PSYCHOLOGY CLASS
What is the 1st thing that pops into your head when you hear the word “Communism”?

3. COMMUNISM GREAT WEBSITE MAP OF COMMUNIST WORLD

4. Thinking About Current and Former Communist Regimes
The Impossible (or “The Inevitable”?) : Collapse of Communism
Some remain, but most with economic reform
Little in common with the socialism Marx and Engels predicted
Unlikely that these regimes will remain Communist

5. MAIN OBJECTIVE
Our Goal is that each student will be able to answer the following questions:
I – Distinguish the major economic systems
II. What is the difference between Communism and Socialism?
III. How did Communism arise?
IV. Why was Russia not the perfect incubator for Marx’s Communism?

6. So what are the 2 major economic systems?
I. ECONOMIC SYSTEMS
So what are the 2 major economic systems?

7. COMMAND ECONOMY Definition?
I. ECONOMIC SYSTEMS
COMMAND ECONOMY Definition?

8. COMMAND ECONOMY A centrally planned and controlled economy.
Govt dictates pricing and production

9. COMMAND ECONOMY
Characteristics?

10. COMMAND ECONOMY Central Planning Central power makes all decisions
Fixed or gov’t set pricing
Govt’ control of distribution and production
Gov’t control of employment and wages
State owned econ resources
Restricted property rights if any
Use of production quotas and PLANS

11. MARKET ECONOMY Defined?
An economy in which decisions regarding investment, production and distribution are based on supply and demand based on the private market with little to no government control

12. MARKET ECONOMY
The Private sector controls and makes econ decisions and sets prices
Supply and demand determines allocation of resources
Private property rights
Freedom to choose jobs and econ decisions
Focus on profits
Emphasis on competition
Income / Wage inequality / unemployment
Economy booms and busts - instability

13. II.COMMUNISM v. SOCIALISM
CAN YOU NAME ONE COUNTRY IN HISTORY THAT HAS EXISTED AS A PURE COMMUNIST STATE?

14. COMMUN ISM
Trivia Show Time – It has never existed in any modern state in the 19th to 21st century!!!!

15. COMMUNISM Lets start with reality today and then work backwards.
1. Few Russians desire to return to the repression of Communist rule.

16. COMMUNISM
2. However, many people still miss the perks (Yes I said “Perks”!) –
WHAT IN THE NAME OF ALL THAT IS HOLY IS A PERK OF COMMUNISM?

17. COMMUNISM
2. “Perks” – low rents, guaranteed employment, and free health care – Whooppee!!

18. COMMUNISM
3. Reformed Communist Parties now do well at the polls in almost all former communist countries. The Communist Party is the 2nd strongest party in Russia.
Why?

19. COMMUNISM
3. Because they target specific demographic groups of people – the “LOSERS” of the transition from communist rule – Who are they?

20. COMMUNISM
3. The “Losers” are the unemployed, the older people on pensions, people on fixed incomes, people with little education, people with limited job skills (Not going to be the elite of a capitalist society!)

21. SOCIALISM 1. What is Socialism?
2. What are the 4 basic Characteristics of Socialism?

22. SOCIALISM 1. What is Socialism?
Economic theory of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society

23. SOCIALISM Basics Public ownership of means of production
Substantial material equality
Economic and political democracy
Command Economy (a centrally planned and controlled economy)

24. SOCIALISM Hard to define as people use different terms
But there are 4 basic characteristics of Socialism
1. Capitalism and private ownership of the means of production are flawed and lead to unacceptable levels of inequality

25. SOCIALISM
2. Equality of Opportunity is a start but Socialists demand substantial equality of outcome as well – In order to be free, people need to be “Free from” hunger, disease and poverty

26. 1. SOCIALISM
3. Yes personal freedoms and competitive elections are vital but Socialists want to extend democracy to include POPULAR control over ALL decisions that shape lives (EX: at work or religion)

27. 1. SOCIALISM
4. Public ownership and control in a substantially more egalitarian society will improve human relations. Capitalism keeps us from reaching our potential so removing the limits of capitalism makes us better off.

28. III. EVOLUTION OF COMMUNISM
Where did Communism originate?
From the growth of the socialist movement
Russia became the incubator of Communism

29. COMMUNISM 1. Who were the “founders”?
2. How does a society evolve into a communist state?
3. Why was Russia NOT a logical place for Communism to develop?

30. MARXISM
Who? Theory developed by Marx and Engels that calls for revolution to lead to a classless society where all goods are publicly owned.

31. 2. Evolution of Communism
A. Societies evolve through steps of social development – from “Primitive Communism” hunter-gatherers to feudalism to industrialized capitalistic society to pure communism

32. Evolution of Communism
B. DIALECTIC – which means that societies evolve through dramatic bursts as opposed to incremental reform (Gradualism anyone?)

33. Evolution of Communism
C. “Historical Materialism” refers to changes in the distribution of economic power which leads society to break into social classes based on wealth and ownership

34. Evolution of Communism
D. Money is the driving force in capitalism. The pressure to make a profit makes capitalism exploitive by nature. Power comes from controlling the means of production.
Hello Wal-Mart!

35. Evolution of Communism
E. Private ownership has CONTRADICTIONS – Private ownership has built in flaws that will lead people to rise up in opposition to the rulers due to Inequality and Exploitation of Capitalism

36. Evolution of Communism
F. So what does capitalist society do to prevent this rebellion by the classes?
SUPERSTRUCTURES

37. Evolution of Communism
F. SUPERSTRUCTURES - Institutions like the State and Religion that try to control masses and slow down rebellion

38. Evolution of Communism
F. “Religion is the opiate of the masses.”
Karl Marx

39. Evolution of Communism
G. Marx on Capitalism – What is wrong with it???
Marx believed that progress was due to conflict between social classes – So where does the conflict come from?

40. Evolution of Communism
H. BOURGEOISIE - The Capitalist Class or the upper class
vs.
PROLETARIAT – The working class

41. Evolution of Communism
I. As the desire for profit grows, capitalism expands and the Bourgeoisie grows smaller while the Proletariat gets larger

42. Evolution of Communism
J. Workers resent the exploitation and their sense of class consciousness grows with the rise in education (“OCCUPY” that Marx!)

43. Evolution of Communism
K. Another side effect of capitalism is improved education which leads to an increase in freedoms in a liberal democracy which leads to worker protests and expression of unhappiness

44. Evolution of Communism
L. Contradictions of Capitalism would lead to REVOLUTION – But it would come after the industrialized democracy- capitalism stage

45. Evolution of Communism
M. Revolution would be peaceful with Proletariat protests and strikes and demonstrations that overthrow the Bourgeoisie

46. Evolution of Communism
N. Marx felt that these revolutions would spread around the world after the industrialized democracy – capitalism stage

47. 2. MARXIST THEORY
O. Next would come a transitional period – ‘THE DICTATORSHIP OF THE PROLETARIAT”
the means of production taken over and run collectively with an egalitarian distribution of resources

48. Evolution of Communism
P. Next Stage = Pure Communism
no need for government or superstructures as people would no longer exploit each other
Freed of ownership, people would work freely and efficiently

49. Evolution of Communism
“From each according to his ability, to each according to his needs.” Marx

50. Evolution of Communism
Why was Russia not the ideal incubator of Marx’s Communism?
Because it was an agrarian society and not an industrialized economy
Lenin had to improvise!

51. WHAT COMES NEXT
Students need to move into Chapter 9 and answer the following questions:
“How and why did the USSR collapse?”
“How does its legacy affect the way Russia has evolved?”