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The Rise of CommunismThe Rise of CommunismWhat are the main differences between
communism & capitalism?
Karl Marx Frederick Engels
A Radical Form of Socialism• In response to Capitalism, a new economic system called socialism
gains popularity
• Socialists argued factors of production should be owned by the public and operate to benefit everyone
• 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
•Marx & Engels say capitalism has created division in society
owned by
• Marx & Engels argue owners control “means of production” while the workers control nothing, which creates 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 have a worldwide revolution & when they control the means of production, the world will have equality
“The proletarians have nothing to lose but their chains. They have the world to win. Workers of the world unite”. - Karl Marx
Capitalism Communism
Individuals own property & the means of production
People (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
• 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
Communism
Capitalism
Communism