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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