Download Phil 100, 101 Political Options Capitalism Communism Socialism

Phil 101 and Phil 100
For B.F. Skinner Section on Utopia
I.
Capitalism vs Socialism: Material from website: “What’s the Difference?”
Additions and modifications by Dr. Gayhart
http://www.diffen.com/difference/Capitalism_vs_Socialism
The central arguments in the socialism/capitalism debate are about economic equality and the role of
government: Soocialists believe that economic inequality is bad for society. The government is responsible
for reducing inequality through programs that benefit the poor-- e.g. free public education, free or subsidized
healthcare, social security for the elderly, higher taxes on the rich. Capitalists believe that government does
not use economic resources as efficiently as private enterprise and therefore society is better off with the free
market determining economic winners and losers. [for Capitalists, the reward for your effort is private
property—OWNERSHIP of your house, car, land, etc. is a visible reward for your achievement. And achievers
are granted higher status—you are honored as among the few who is to be congratulated. And if you do not
make it in the competitive game for assets, you are stigmatized as being a “loser”—someone is either “lazy” or
a “freeloader.” Socialists try to narrow the gap between the haves and the have-nots. It is a basic belief that
all people have a right to a comfortable life, if the economy is able to supply all its members with ample food
and shelter. “The U.S. is widely considered the bastion of capitalism and large parts of Scandinavia and
Western Europe are socialist democracies. However, the truth is that every developed country has some
programs that are socialist.” Socialism is focused more on providing generous housing subsidies, parental
leaves programs, public health protections, and unemployment benefits. ]
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Capitalism
Socialism
Philosophy:
Capital (or the "means of production") is
owned, operated, and traded for the
purpose of generating profits for private
owners or shareholders. Emphasis on
individual profit rather than on workers
or society as a whole.
From each according to his ability, to
each according to his contribution.
Emphasis on profit being distributed
among the society or workforce in
addition to receiving a wage.
Ideas:
Laissez-faire means to "let it be";
opposed to government intervention in
economics because capitalists believe it
introduces inefficiencies. Free market
produces the best economic outcome
for society. Govt. should not pick
winners and losers.
All people should be given an equal
opportunity to succeed. Workers should
have most say in their factory's
management. The free market suffers
from problems like tragedy of the
commons. Government regulation is
necessary.
Economic System:
Free-Market economy.
Wealth redistributed so that everyone in
society is given somewhat equal shares
of the benefits derived from labor, but
Capitalism
Socialism
people can earn more if they work
harder. Means of production are
controlled by the workers themselves.
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Key elements:
The accumulation of capital drives
economic activity - the need to
continuously produce profits and
reinvest this profit into the economy.
"Production for profit": useful goods and
services are a byproduct of pursuing
profit.
Economic activity and production
especially are adjusted to meet human
needs and economic demands.
"Production for use": useful goods and
services are produced specifically for
their usefulness.
Economic
coordination:
Relies principally on markets to
determine investment, production and
distribution decisions. Markets may be
free-markets, regulated-markets, or may
be combined with a degree of statedirected economic planning or planning
within private companies.
Planned-Socialism relies principally on
planning to determine investment and
production decisions. Planning may be
centralized or decentralized. Marketsocialism relies on markets for
allocating capital to different sociallyowned enterprises.
Political
movements:
Classical liberalism, Social liberalism,
Libertarianism, Neo-liberalism, Modern
Social-Democracy
Democratic Socialism, Communism,
Libertarian Socialism, Anarchism,
Syndicalism
Ownership
structure:
The means of production are privatelyowned and operated for a private profit.
This drives incentives for producers to
engage in economic activity.
The means of production are sociallyowned with the surplus value produced
accruing to either all of society (in
Public-ownership models) or to all the
employee-members of the enterprise (in
Cooperative-ownership models).
Religion:
Permitted/Freedom of Religion
freedom of religion
Key Proponents:
Adam Smith, David Ricardo, Milton
Friedman, Fredrich Hayek, Ayn Rand
Robert Owen, Pierre Leroux, Karl Marx,
Fredrick Engels, John Stuart Mill, Albert
Einstein, George Bernard Shaw, Leo
Tolstoy, Emma Goldman
Way of Change:
Capitalism
Socialism
Fast change within the system. In
theory, the relationship between buyer
and seller (the market) is what fuels
what is produced. Government can
change rules of conduct practices
through regulation.
Workers in a Socialist-state are the
agent of change rather than any market
or desire on the part of consumers.
Change by the workers can be swift or
slow, depending on change in ideology
or even whim.
Tenets
One of the central arguments in economics, especially in the socialism vs. capitalism debate, is the role of the
government. A capitalist system is based on private ownership of the means of production and the creation
of goods or services for profit. A socialist system is characterized by social ownership of the means of
production, e.g. cooperative enterprises, common ownership, direct public ownership or autonomous state
enterprises.
Proponents of capitalism espouse competitive and free markets, voluntary exchange (over forced exchange of
labor or goods). Socialists advocate greater government involvement but the differ in the type of social
ownership they advocate, the degree to which they rely on markets versus planning, how management is to be
organized within economic enterprises, and the role of the state in constructing socialism.
Criticisms of Socialism and Capitalism
Criticisms of Capitalism
Critics argue that capitalism is associated with: unfair and inefficient distribution of wealth and power; a
tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism, counterrevolutionary wars and various forms of economic and cultural exploitation; repressions of workers and trade
unionists, and phenomena such as social alienation, inequality, unemployment, and economic instability.
Critics have argued that there is an inherent tendency towards oligolopolistic structures when laissez-faire is
combined with capitalist private property. Capitalism is regarded by many socialists to be irrational in that
production and the direction the economy is unplanned, creating many inconsistencies and internal
contradictions.
In the early 20th century, Vladimir Lenin argued that state use of military power to defend capitalist interests
abroad was an inevitable corollary of monopoly capitalism. Economist Branko Horvat states, "it is now well
known that capitalist development leads to the concentration of capital, employment and power. It is somewhat
less known that it leads to the almost complete destruction of economic freedom." Southern Methodist
University Economics Professor Ravi Batra argues that excessive income and wealth inequalities are a
fundamental cause of financial crisis and economic depression, which will lead to the collapse of capitalism
and the emergence of a new social order.
Environmentalists have argued that capitalism requires continual economic growth, and will inevitably deplete
the finite natural resources of the earth, and other broadly utilized resources. Murray Bookchin has argued that
capitalist production externalizes environmental costs to all of society, and is unable to adequately mitigate its
impact upon ecosystems and the biosphere at large. Labor historians and scholars, such as Immanuel
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Wallerstein, Tom Brass and latterly Marcel van der Linden, have argued that unfree labor — by slaves,
indentured servants, prisoners, and other coerced persons — is compatible with capitalist relations.
Many religions have criticized or opposed specific elements of capitalism; traditional Judaism, Christianity, and
Islam forbid lending money at interest, although methods of Islamic banking have been developed. Christianity
has been a source of both praise and criticism for capitalism, particularly its materialist aspects.
Criticisms of Socialism
Criticisms of socialism range from claims that socialist economic and political models are inefficient or
incompatible with civil liberties to condemnation of specific socialist states. There is much focus on the
economic performance and human rights records of Communist states, although there is debate over the
categorization of such states as socialist.
In the economic calculation debate, classical liberal Friedrich Hayek argued that a socialist command economy
could not adequately transmit information about prices and productive quotas due to the lack of a price
mechanism, and as a result it could not make rational economic decisions. Ludwig von Mises argued that a
socialist economy was not possible at all, because of the impossibility of rational pricing of capital goods in a
socialist economy since the state is the only owner of the capital goods. Hayek further argued that the social
control over distribution of wealth and private property advocated by socialists cannot be achieved without
reduced prosperity for the general populace, and a loss of political and economic freedoms.
Hayek's views were echoed by Winston Churchill in an electoral broadcast prior to the British general election
of 1945:
a socialist policy is abhorrent to the British ideas of freedom. Socialism is inseparably interwoven with
totalitarianism and the object worship of the state. It will prescribe for every one where they are to work, what
they are to work at, where they may go and what they may say. Socialism is an attack on the right to breathe
freely. No socialist system can be established without a political police. They would have to fall back on some
form of Gestapo, no doubt very humanely directed in the first instance.
II Communism vs Socialism
In a way, communism is an extreme form of socialism. Many countries have dominant socialist political
parties but very few are truly communist. In fact, most countries - including staunch capitalist bastions like the
U.S. and U.K. - have government programs that borrow from socialist principles. "Socialism" is sometimes
used interchangeably with "communism" but the two philosophies have some stark differences. Most notably,
while communism is a political system, socialism is primarily an economic system that can exist in various
forms under a wide range of political systems.
Philosophy:
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Communism
Socialism
From each according to his ability, to
each according to his needs. Freeaccess to the articles of consumption is
made possible by advances in
technology that allow for super-
From each according to his ability, to
each according to his contribution.
Emphasis on profit being distributed
among the society or workforce in
addition to receiving a wage.
Communism
Socialism
abundance
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Definition:
A theory or system of social
organization based on the holding of all
property in common, with actual
ownership ascribed to the community
or state
A theory or system of social
organization based on the holding of
most property in common, with actual
ownership ascribed to the workers
Ideas:
Human societies have always been
divided into warring classes. The
Industrial Revolution has enriched the
wealthy and impoverished the poor.
The workers must overthrow the
bourgeois.
All people should be given an equal
opportunity to succeed. Workers
should have most say in their factory's
management. The free market suffers
from problems like tragedy of the
commons. Government regulation is
necessary.
Economic System:
Wealth redistributed so that everyone
in society is given equal shares of the
benefits derived from labor. All means
of production are controlled by the
state.
Wealth redistributed so that everyone
in society is given somewhat equal
shares of the benefits derived from
labor, but people can earn more if they
work harder. Means of production are
controlled by the workers themselves.
Political System:
No leader, directed directly by the
people. This has never been actually
practiced, and has just used a oneparty system.
Multiple parties, but the ruling party
usually goes by the name "Socialist".
Social Structure:
All class distinctions are eliminated.
Class distinctions are diminished
Economic
Coordination:
Government controls all business, as
well as Business decisions.
Planned-Socialism relies principally on
planning to determine investment and
production decisions. Planning may be
centralized or decentralized. Marketsocialism relies on markets for
allocating capital to different sociallyowned enterprises.
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Communism
Socialism
Free Choice:
In real communism, where a leader
does not exist, everything is chosen
freely. In those that have been
practiced though, all choices, including
education, religion, employment and
marriage, are controlled by the state.
All choices, including education,
religion, employment and marriage, are
up to the individual. All health care and
education is provided free to everybody
Political Movements:
Leninism, Trotskyism, MarxismLeninism, Maoism, Left-Communism
Democratic Socialism, Communism,
Libertarian Socialism, Anarchism,
Syndicalism
Key elements:
An enhanced form of the principle of
"Production for use".
Economic activity and production
especially are adjusted to meet human
needs and economic demands.
"Production for use": useful goods and
services are produced specifically for
their usefulness.
Religion:
Abolished.
freedom of religion
Private Property:
Abolished
two kinds of property, private property,
such as land, houses, clothing, etc.
owned by the individual. Public
property, factories, and means of
production owned by the state but with
worker control
Key Proponents:
Karl Marx, Fredrich Engels, Vladimir
Lenin, Leon Trotsky
Robert Owen, Pierre Leroux, Karl
Marx, Fredrick Engels, John Stuart Mill,
Albert Einstein, George Bernard Shaw,
Leo Tolstoy, Emma Goldman
Discrimination:
In theory, all members of the state are
considered equal
The people are considered equal, laws
are made when necessary to protect
people from discrimination
Ownership structure:
The means of production are
commonly-owned, meaning no entity or
individual owns productive property.
The means of production are sociallyowned with the surplus value produced
accruing to either all of society (in
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Communism
Socialism
Importance is ascribed to "usership"
over "ownership".
Public-ownership models) or to all the
employee-members of the enterprise
(in Cooperative-ownership models).
Way of Change:
Government in a Communist-state is
the agent of change rather than any
market or desire on the part of
consumers. Change by government
can be swift or slow, depending on
change in ideology or even whim.
Workers in a Socialist-state are the
agent of change rather than any market
or desire on the part of consumers.
Change by the workers can be swift or
slow, depending on change in ideology
or even whim.
Means of control:
Proletariat engages in violent rebellion.
Proletariat engages in taking charge of
the factories and means of production.
Variations:
Include Marxism, Leninism, Stalinism
and Maoism
libertarian-socialism, and anarchosocialism, anarcho-syndicalism