Capitalism, Socialism Capitalism, Socialism & Communism& Communism

November 23November 23

I. I. CapitalismCapitalism Private ownership of goods and Private ownership of goods and

means of productionmeans of production Price set by competitionPrice set by competition Profit and distribution of goods Profit and distribution of goods

will vary according to risk/successwill vary according to risk/success Karl Marx believed it relies on Karl Marx believed it relies on

exploitation of the poor, who will exploitation of the poor, who will eventually rise upeventually rise up

II. Engels and UreII. Engels and Ure Engels was the son of a factory ownerEngels was the son of a factory owner

– In 1844 wrote his observations on the In 1844 wrote his observations on the condition of workerscondition of workers

– Lived in filth because they werenLived in filth because they weren’’t paid t paid enough to afford betterenough to afford better

Ure argued that Industrialism offered Ure argued that Industrialism offered equal chance for success to everyoneequal chance for success to everyone– Those who took the chance deserved the Those who took the chance deserved the

wealthwealth– Even workers benefit compared to beforeEven workers benefit compared to before

III. III. SocialismSocialism Public ownership of goods overseen Public ownership of goods overseen

by the state (government)by the state (government) Prices and wages set by the statePrices and wages set by the state Goods are distributed to those who Goods are distributed to those who

workwork Marx believed socialism would lead Marx believed socialism would lead

to communismto communism

IV. Karl MarxIV. Karl Marx Moved to Paris in 1843 & Moved to Paris in 1843 &

befriended Engelbefriended Engel Wrote Wrote The Communist The Communist

ManifestoManifesto in 1847 to express in 1847 to express their economic/social beliefstheir economic/social beliefs

His writings would inspire manyHis writings would inspire many

V. V. CommunismCommunism Communal ownership/distribution Communal ownership/distribution

of goodsof goods Everyone will contribute what they Everyone will contribute what they

can and receive what they needcan and receive what they need Marx believed it would function Marx believed it would function

without a governmentwithout a government– Workers working for the common Workers working for the common

good rather than for profits of good rather than for profits of factory ownersfactory owners

SSocialism = ocialism = SStatetateCCommunism = ommunism = CCommunityommunity

Does it work?Does it work?

Economic EqualityEconomic Equality