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Week 1: Introduction
20th Century Political Ideologies: Capitalism,
Communism and Fascism
Pre-17th Century Europe
● Major social division between those who
owned land and those who didn’t.
Kings, Nobles, Knights, Vassals
merchants, craftsmen
Peasants, Serfs, Farmers
17th Century: Political Changes
● Feudal system
dissolves.
● Monarch
becomes
supreme ruler of
territory.
● First modern
states emerge.
Peace of Westphalia
Late 17th Century Economic Changes
● Early industrialization
● More wealth for
producers, less for
landowners.
● Demand for workers
feeds industrialization.
Market Capitalism justifies process
of industrialization.
Definitions:
Capital - means by which goods are produced.
Efficiency - maximum amount of goods
produced with minimum effort. Ideal in market
economy.
Adam Smith argues market efficiency
is the end goal of capitalism
● Maximizing efficiency
creates more goods for
consumption.
● More efficiency leads to
more wealth.
○ Less costs = more profit.
More efficiency makes society better
● Draws on Bentham
○ Increasing a society’s
utility benefits all its
members.
● More goods and profits
among individuals will
help entire society
Jeremy Bentham
Implications for countries
● Some countries produce goods more
efficiently than others.
○ Comparative advantage (Smith, then Ricardo).
● Free trade maximizes global efficiency.
● Government intervention should be limited.
○ Property rights, rule of law.
Consequences of market capitalism
● New classes
○ Bourgeoisie
○ Proletariat
● Redistribution of
wealth
○ Peasants move to
cities
○ Landowners grow
poorer.
Rise of Bourgeois leads to political
demands
● Owners of capital demand power from
monarchs.
● Favor democracy
● Concerned with property rights and rule of
law.
○ Curb abuse of power by absolute monarchs.
Glorious Revolution in 1689
● Charles II forced to
abdicate.
● Parliamentary
supremacy
recognized by
successors.
American Revolution (1775-1783)
● Wealthy landowners
and merchants lead
revolution.
● Democratic republic
established after
British are expelled.
French Revolution (1789)
● Initially, middle class
revolution.
● Louis XVI overthrown
and executed.
● Monarchy suspended
○ Restored after Napoleon
Why does democracy succeed?
Why does democracy succeed?
● Middle class!
● Middle class - peasant alliance
● Early peasant rebellion
Reaction to capitalism
● Growth in working
class created
tension.
● Demands for equal
distribution of wealth,
end to inequality
Communist Manifesto (1848)
● Written by Karl Marx and
Friedrich Engels.
● Argued bourgeoisie
deliberately held down
working class.
● Advocated global
communist revolution.
Working class demands increase in
intensity by the end of 19th Century
Terrorism
Strikes
Democratic Governments managed
workers’ demands
● Britain, France and US granted full suffrage
to voters irrespective of property.
● Social reforms passed to ease inequality.
● Growth of social democracy.
Monarchies were slow to pass
political reforms
● Demands came from
workers, peasants and
bourgeoisie.
● Russian, German and
Austrian monarchs
gave up some power
but remained absolutist
German, Austrian and Russian
Empires collapse after WW1
Russia: Democratic government
briefly succeeds tsar in 1917
● Provisional
government led
by Alexander
Kerensky
● Workers form
soviets, demand
authority.
Russian communists (Bolsheviks)
support soviets
● Bolsheviks led by
Vladimir Lenin.
● Kerensky outlaws
Bolsheviks.
● Bolsheviks seize
power, outlawing
other political forces.
Why were Bolsheviks successful?
Why were Bolsheviks successful?
● No peasant-aristocrat hierarchy.
● Weak middle class.
● Peasant capture by radical intellectuals.
Russian Soviet Federative Socialist
Republic established in 1917, followed by
Union of Soviet Socialist Republics in 1922
Policies:
● Universal Healthcare and education
● Collectivization of agriculture and
urbanization
● Forced seizure of means of production.
● Central planners set output of goods
○ Shortage economy.
Reaction to Communism
● Western powers land troops in Russia.
○ Support counter-revolutionary White army
● Economic crises in Germany and Italy lead
to fear of communist revolution.
○ Communist uprising put down by social
democrats in Germany.
Mussolini takes power in Italy in 1922
Mussolini’s fascism
● Supported by coalition of right-wing leaders.
● Fervently anti-communist.
● Government purchases industry gradually.
○ 85% of national industry nationalized by 1935
● Private Property allowed
● Autarky (high tariffs)
Similar movements are founded in
Germany
● National Socialist
German Workers’ (Nazi)
Party formed to draw
workers from communism
to nationalism.
● Adolf Hitler leads Beer
Hall Putsch in 1923.
Hitler’s Rise to Power
● Released in 1924.
● Nazi party grows to
be largest nationalist
party.
● Plurality in Reichstag
by 1932.
● Absolute power after
Reichstag Fire.
Why were fascists successful?
Why were fascists successful?
● Late-developing middle class
● Aristocrat-peasant hierarchy
● No peasant revolts
Major Differences in Ideologies
Private
Property
Means of
Production
Union
Membership
Ruling Class
Communism
Banned
Held by the
Vertical,
state; gained by obligatory
force
Proletariat
Market
Capitalism
Allowed
Owner by
private citizens
Horizontal,
voluntary
Bourgeoisie
Fascism
Allowed
Held by the
state; gained
through
compensation
Vertical,
obligatory
Bourgeoisie
(often military
and aristocracy)
Summary: Modern Ideologies are a
reaction to industrialization
● Market Capitalism maximizes gains for
bourgeoisie.
● Communism equally distributes gains to
working class and peasants.
● Fascism is a reaction to threat of
communism by middle class.
○ Private property allowed, production enforced by
military dictatorship.
On Thursday...
Change in the Nature of Intervention