1. The Rise of Communism What are the main differences between communism & capitalism? Karl Marx Frederick Engels

2. A Radical Form of Socialism In response to Capitalism, a new economic system called socialism gains popularity Socialists argued factories, mines & railroads should be owned by the public and operate to benefit all people Socialism would end poverty, promote equality & create social justice 1849: Karl Marx (German journalist) & Frederick Engels (son of factory owner) wrote a pamphlet called The Communist Manifesto Manifesto calls for a more radical & complete form of socialism, called communism Communists thought the factors of production should be controlled by the people owned by

3. Marx & Engels say capitalism has created division since owners control “means of production” while the workers control nothing This has caused society to divide into two warring classes: 1.owners known as the bourgeoisie (“haves”) 2. workers known as the proletariat (“have-nots ”) Marx states proletariat will violently rise up against the bourgeoisie Workers will then control the means of production causing equality

4. “ The proletarians have nothing to lose but their chains. They have the world to win. Workers of the world unite”. - Karl Marx CapitalismCommunism Individuals own property & the means of production Community should own property & means of production Businesses follow their self- interest thru competition, causing good wages. Self interest leads to greed, so businesses takes advantage of workers Consumers determine what products are needed. Supply & demand effects prices Goods should be divided according to people’s needs, public sets the price. Government should not interfere in the economy Community or Govt should plan the economy

5. What is communist or capitalist? 1.A public owned phone company has decided to raise your rates: 2.You are a farmer and sell your food to either Albertson’s or Vons, depending on who pays more: 3.I cannot afford health insurance and public tax money will pay my medical bills: 4.McDonald’s introduces a $.99 cheeseburger, so Burger King does the same thing: 5.Government plans on needing 100 cell phones this year Capitalism Communism Capitalism