Download capitalism - worldhistorynulty

-COMMUNISM
Communism is an international political movement and a political and economic system that has its origins
in the philosophy of Karl Marx. Also referred to as Marxism, it is a socialist philosophy that calls for an
international revolt of workers against capitalism to bring about a workers' utopia. Communism has split into
various ideologies, including the Marxist-Leninist philosophy behind the founding of the Soviet Union and the
Maoist philosophy that served as the basis for the revolution in China. The Soviet Union was long the leader
of the communist world. Now, the only remaining communist major power is the People's Republic of China,
though some smaller nations maintain communist systems.
The term communism originated among secret revolutionary groups in Paris in the 1830s and referred both
to a political movement of the working class in a capitalist society and to a projected form of society
that would come into existence after the workers came to power through class struggle. Marx and
Friedrich Engels brought these ideas to a wider audience in 1848 when they published a pamphlet called the
Communist Manifesto. Marx did not invent the idea of communism, but he did give it new meaning. In a
communist society, the community owns political and economic power, and the wealth is distributed
among the people according to need. Marx went one step further. He said that communism was destined
to take over the nations of the world based on his reading of history, and he called for the "workers of the
world to unite" to overthrow their capitalistic enslavement. Marx' following was small at first but grew as the
19th century progressed
-SOCIALISM
Socialism is a social and governmental system, based on equality and social and economic justice, that
requires government intervention in economic affairs. The state, rather than individual or market forces,
owns and controls the means of production, distribution, and exchange.
Socialism refers to both political doctrines and the political movement and system in which the doctrines are
enacted. There are various forms of socialism, but all stress the need for revolutionary changes to redress
what are believed to be moral flaws in capitalism. Socialists believe that capitalism was intended to satisfy
people's needs and wants at a price, which along with paid interest and the profit motive, is immoral.
Socialism stems from democracy, as the ideal of political equality is extended to economic equality. In
theory, socialism is the first step toward communism. However, socialism differs from communism because
it is based on democracy and ethical values and can allow for private ownership.
Some historians trace the roots of socialism to the rise of philosophy in Greece. Social organization and the
need to cooperate have always existed, and Hellenistic philosophy was concerned with the problems of
society and citizenship. Christian morality developed from Hellenistic philosophy, and that morality
encompassed economic issues. For example, the New Testament, which became the prevailing ethical
code of Western civilization, included laws against usury, or excessive interest. The writings of Aristotle, as
well as the Bible, show a belief that humans are entitled only to the property that they have created by their
labor—a protosocialist idea.
The roots of modern socialism are in revolutions in France and England. The French Revolution was the
largest lower-class revolt in history, as the Third Estate, which included bourgeoisie and peasants, rebelled
under the banner of "Liberty, Equality, Fraternity" against the established societal, economic, and political
structure of the ancien régime. The revolution progressed into a struggle for political and economic equality,
as the depressed state of the French economy spread misery equally among the peasants. The Industrial
Revolution in England started with the hope that the increased industrial development of a nation would
lead to economic equality but instead led to the exploitation of workers and the concentration of wealth in the
industrial capitalists. Those factors led to the utopian socialist movements in France and Great Britain during
the early 19th century.
For example, Henri de Saint-Simon believed that the social system of France before the French Revolution
was not appropriate for the new age. Science had taken the place of the Catholic Church in the new era,
and industry should take the place of lineage in determining social position. Saint-Simon's followers were
among the first who viewed private property and capitalism as incompatible with the new system, and they
argued against the hereditary transfer of wealth. Saint-Simon and his followers were influential on the early
writing of Karl Marx.
Charles Fourier was another early philosopher of utopian socialism who advocated the reconstruction
of society into cooperative communities where work was distributed on a rotating basis among all members.
Fourier advocated a scientific view of society, and his economic ideas are considered to be the forerunners
of the ideas of Marx. He explained his ideas when he published Theory of Social Organization in 1820,
which inspired utopian communities, including Brook Farm in Massachusetts during the 1840s. Another
utopian socialist, Robert Owen, believed that cooperative living could solve the problems of unemployment
and poverty. He established New Harmony in 1825 as a utopian community based on the principles of
shared work, complete equality, and communal property without a religious basis. New Harmony failed and
was disbanded in 1827.
During the 1830s, Chartism appeared in Great Britain as the first working-class movement in the
world. William Lovett drafted the Chartist People's petition (1838), which demanded reform for working
conditions in Great Britain. At around the same time, Louis Blanc advocated radical social and political
reforms in France. Blanc outlined his view for an ideal socialist state in The Organization of Labor, published
in 1840. Later, Blanc became a leader in the socialist movement that led to the Revolutions of 1848. During
this period, the anarchist movement emerged, led by Pierre-Joseph Proudhon, who supported some
socialist principles by attacking the private property of the bourgeoisie.
The latest and most revised form of socialism is market socialism. In this system, the state maintains
ownership of economic enterprises but allows market forces, rather than planning, to guide the economy.
The system emerged in eastern Europe during the 1960s and 1970s. Western socialism also emerged
during the 20th century, as such countries as Sweden and Great Britain adopted a social safety net,
guaranteeing a minimal standard of living for all citizens. Unlike the Marxist prediction, those changes were
made through a parliamentarian government, not through violent revolution.
At the dawn of the 21st century, socialism continues to change. In the philosophy of Marx, socialism that
provides equality without a revolution has not been successful. However, many of the basic tenets of
socialist thought still hold sway. Though no longer considered revolutionary, many people believe in the right
to a minimal standard of living that includes health care and education. The redistribution of wealth through
taxes and government programs in capitalist countries remains socialism's lasting effect on world history
-CAPITALISM
Capitalism is an economic system in which most means of production are privately owned, and goods,
services, and income are distributed through markets. Capitalism is also called free-market or freeenterprise economy. Under laissez-faire capitalism, the state is separated from the economy just as it is
from religion.
Proponents of capitalism believe that it can create social harmony through every individual's pursuit of selfinterest. Theoretically, in allowing people and businesses to act unhampered by government regulations,
capitalism causes wealth to be created in the most efficient manner possible, which ultimately raises the
standard of living, increases economic opportunities, and makes available an ever-growing supply of
products for everyone. In other words, as one person creates wealth for himself or herself, that person
simultaneously creates wealth and opportunities for everyone else—as the rich become richer, the poor
become richer too.
Detractors of capitalism contend that it exploits a large portion of society for the sake of a small minority of
wealthy individuals. Supporters counter that a properly functioning capitalist system actually prevents
exploitation and that in fact, government regulation of labor is what causes problems; it prevents individuals
from living for their own sake. There should be no worker exploitation in a purely capitalist society, capitalists
argue, because all workers are free to choose their employers. (It should be noted, however, that supporters
of capitalism do not consider a job that does not completely satisfy a worker to be "exploitation"; in capitalist
theory, exploitation only occurs when someone is physically forced to work against his or her will.) Moreover,
in a capitalist regime, because employers are competing for workers, it is in the economic self-interest of
employers to provide higher wages and better working conditions for their employees, lest they lose them to
a competitor.
In a properly functioning free market, all businesses are competing with one another for profit, which should
prevent any one of them from gaining power over the entire field. Only a business that was vastly better than
its competition could win a monopoly for itself, and that would be an acceptable result of superior business
skills. According to economist Adam Smith and other supporters of capitalism, coercive monopolies can only
occur when the government grants special treatment to one business in the form of franchises, subsidies, or
tariffs. One of capitalists' main criticisms of socialism is that the government controls all means of production
and thus creates the ultimate form of monopoly.
Individual rights must always be upheld in order for capitalism to function effectively; that means that the
majority must not be able to violate the rights of the minority. A constitutionally limited democracy, like that of
the United States, is fairly effective at keeping a capitalist economic system working smoothly. Systems of
government that concentrate power in the state at the expense of individual freedom, including communism,
socialism, and fascism, are incompatible with laissez-faire capitalism.
The origins of capitalism can be found in Europe in the 16th and 17th centuries. Before that time, any
excess profits made by a manufacturer generally went toward such activities as the building of cathedrals;
the Catholic Church discouraged too much pursuit of worldly wealth and tried to get people to spend money
on spiritual enrichment instead. With the rise of Protestantism, however, hard work and wealth came to be
seen as a worldly manifestation of God's blessing.
During the 16th through 18th centuries, the English cloth industry began following capitalist tendencies;
manufacturers began taking their profits and investing them in their production facilities in the hope of
making even greater profits in the future. Also around that time, Europe's supply of precious metals like
silver and gold was increasing, which meant an inflation of prices. Wages did not keep pace with inflation,
and capitalist manufacturers benefited from that gap by increasing their profit margins. In addition, the rise of
strong national states helped capitalism by implementing such social constructs as uniform monetary
systems and legal codes, which made it possible for private entrepreneurs to function profitably and safely.
The Industrial Revolution of the 18th and 19th centuries changed the focus of capitalism from commerce
to industry. Political liberalism of the time supported free trade, the gold standard, balanced budgets, and
little poor relief.
The social philosopher Adam Smith wrote the first major work on capitalist political economy, An Inquiry into
the Nature and Causes of the Wealth of Nations, in 1776. Smith posited that societies progress through four
stages: the original stage of hunters, a period of nomadic agriculture, a time of feudal farming, and a final
stage of commercial interdependence. Each stage is accompanied by institutions that meet its needs: there
is little need for civil government in the earlier stages, which don't involve private property, but the later ones
need methods to protect the rich from the poor. Smith thought that the final stage should leave economic
determinations to the market rather than let the government regulate the economy. That system, laissezfaire capitalism, was Smith's idea of perfect liberty.
According to Smith, laissez-faire capitalism would function in an orderly manner through the protective
mechanism of competition, which prevents people from following their passions and desires exclusively.
Capitalism requires that individuals act in their own interest, but if everyone does that at the same time, the
system will remain more or less in equilibrium. Many people competing with one another for betterment
results in an "invisible hand" that regulates the economy such that the prices of commodities stay at their
"natural" level, corresponding to the costs of their production. Wages, rents, and profits are subject to the
same discipline, which results in a natural orderliness in the distribution of income among workers, rents to
landlords, and profits to manufacturers.
Smith argued that under the system of competition, national wealth could grow every year. The division of
labor, aided by the prior accumulation of capital, would result in greater production than could be achieved
by individuals working alone. Yet wealth could only grow if individuals did not inhibit it through artificial
regulation. Smith argued against monopoly as much as against government regulation.
Communism
1.
Define communism–
2.
Define utopia –
3.
What is an international revolution of workers?
4.
Where did the term communism come from?
5.
Who published the Communist Manifesto and in what year?
6.
In a communist society, who owns political and economic power?
7.
Write out your definition of communism.
Socialism
1.
Define socialism –
2.
What is the state?
3.
Why do socialists think that capitalism is immoral?
4.
How does socialism stem from democracy?
5.
How does socialism differ from communism?
6.
How does the Bible and Christianity support the ideas of socialism?
7.
What did the followers of Saint Simon about the hereditary transfer of wealth? Why?
8.
What did Charles Fourier want to create?
9.
What did Robert Owen create?
10. Define market socialism.
11. Write out your own definition of modern socialism.
Capitalism
1.
Define Capitalism –
2.
What do the opponents of capitalism believe?
3.
How is capitalism individualistic?
4.
Who is Adam Smith?
5.
Create a definition for modern capitalism.