Socialism and

Communism

Seeking Utopia

Capitalism

An economic system

Means of production are privately owned

and operated

Distribution is determined by a free market,

rather than by the state

Supply and demand

Social Organization

Socialism

Advocates the vesting of

the ownership and control

of the means of production

and distribution, of

capital, land, etc., in the

community as a whole.

Communism

A theory or system based

on the holding of all

property in common,

actual ownership being

ascribed to the

community as a whole or

to the state.

Socialism as an ideology

Text: “An ideology arguing that citizens are

best served by policies focused on meeting

the basic needs of the entire society rather

than on serving the needs of individuals as

individuals.”

Roots

Ancient roots – Judeo-

Christian belief in the

common good, which takes

precedence over individual

desires

Term “socialism” coined in

1827 by British socialist

Robert Owen to describe his

view of a cooperative new

society.

Socialism’s emergence

Liberal political parties in 19th century

Europe failed to address the desperate needs

of working people.

Classical liberalism views poverty as an

individual choice or failure, not the result of

social structures. Also suspicious of big

government.

Socialism provides a different conception of

individual responsibility & of government.

Labour Party

In England,

socialism became a

political movement

in 1884, with the

creation of the

Fabians, who

provided the basis

for the new Labour

Party.

Socialism’s principles

• Egalitarianism or equality. Humankind will be unified and cooperative, once wealth is owned and used for the common good. Capitalism exploits the very people who create society’s wealth.

• Moralism. Division of rich & poor is evil; capitalism is fundamentally unjust. Instead, the ideal future emphasizes peace, social justice and true liberty for all.

Social democracy

A variation on socialism that argues that

socialism and democracy can work

together. Example: British Labour Party.

Change comes through peaceful democratic

processes like elections.

Democratic governments should promote

economic - as well as political - freedom &

equality.

Social Democracy

Socialist political parties compete and win office in every western democracy except the United States.

Argentina Australia, Belgium, Britain, Canada, Colombia, Denmark, Fiji, France, Germany, India, Ireland, Israel, Malaysia, Netherland, Puerto Rico, South Korea, Sri Lanka, Sweden, Venezuela.

• Why might this be so? What’s different about the U.S.?

Democratic Socialists of America

“Democratic Socialists believe that both the

economy and society should be run

democratically—to meet public needs, not to

make profits for a few…. many structures of our

government and economy must be radically

transformed … so that ordinary Americans can

participate in the many decisions that affect our

lives.”

http://www.dsausa.org/dsa.html

MarxismNoun:

the system of economic and political thought

developed by Karl Marx, along with Friedrich Engels,

especially the doctrine that the state throughout history

has been a device for the exploitation of the masses by

a dominant class, that class struggle has been the main

agency of historical change, and that the capitalist

system, containing from the first the seeds of its own

decay, will inevitably, after the period of the

dictatorship of the proletariat, be superseded by a

socialist order and a classless society.

Social democracy’s similarities

with Marxism

Sees capitalism as exploitive, leading to

social injustice and extreme income

inequality.

These economic conditions have

adverse effects on ordinary

working people – in terms of

physical health, psychological

well-being, housing, education,

etc…

Social democracy’s similarities

with Marxism

Both ask the question: why should those

who provide the money (capital) receive all

the profits, and those who provide the labor

receive none of the profits?

It is labor, after all, that turns raw materials

(including cash) into something with greater

value?

Social democracy’s differences

from Marxism

Private property not abolished, but the

public should control the use of property

and make necessities available to all.

Individual rights not abolished but should

complement other important values such as

concern for others.

Change can occur through an evolutionary

process that uses democratic means.

Marx’s view of social democracy

Karl Marx said social democrats were naive

to think that “enlightened capitalists” would

join with workers to form a new society.

Violent revolution was inevitable.

Karl Marx

German political thinker in 19th century.

Did most of his work in Britain.

Influenced by German philosopher Hegel.

Published Communist Manifesto in 1848

with co-author Frederick Engels.

Wrote multi-volume Capital (Das Kapital),

starting in 1867.

Karl Marx

Studied British economic records for 20

years to develop theory that everything is

based on the economic system: politics,

law, social structures,

family relations,

even religious belief.

Define

Bourgeois

Define

Bourgeois: modern capitalists who own

the means of production and therefore

get to keep all the profits.

Today, this would include major

stockholders in corporations.

Define

Proletarians

Define

Proletarians: modern wage laborers who sell their labor to live and don’t get any of the profits that they help to create.

This includes everyone who is not a stockholder or owner of capital, even professionals who work for a salary.

Karl Marx’s key ideas

Economic systems go through historic cycles. Over time, an economic system becomes rigid and cannot adjust to new technologies, so a new system emerges, with new class relations and oppression.

Someday, a perfect classless society will emerge and there will be no further cycles.

Marx’s key ideas

1. Slave system gave way to feudal economy

2. Feudal economy broke down with growth

of manufacturing, towns, navigation &

transportation, emergence of middle class

3. Industrial capitalism emerged, with only

two classes: proletariat and bourgeoisie.

Industrial Capitalism –

Negative Effects

Some say it destroys important human values, replacing even religious belief with the exploitation of others for one’s own gain.

Undermines an individual’s sense of personal value in one’s work since “personal” work is typically replaced with purchased, mass-produced items.

Undermines human relationships since many if not all relationships are based on cash.

Destroys human freedom because most people are plugged into the factory or corporate system. The only freedom it protects is free trade.

Industrial Capitalism –

Positive Effects

Unprecedented exploration and technological

advancements. Think of modern jet airliners or the

voyages to the moon.

War less likely because if global interdependence.

Urbanization opens people’s minds to new ideas

and multicultural markets and urban areas.

Economic production centralized, leading to

favorable conditions for communism to emerge.

Communist Revolution Inevitable

Capitalism creates huge factories. Workers become concentrated and begin to organize for legal reforms (higher wages & better working conditions). Their efforts mostly fail. Fierce competition between capitalists leads to new technologies, which leads to lower costs.

Communist Revolution Inevitable

In the competition, some capitalists go

bankrupt & have to become workers, and

many workers lose their jobs as new

technology replaces them.

(Consider reports that U.S. workers’ productivity

is going up. Fewer workers are making more

goods, which means technology is replacing

them.)

Communist Revolution Inevitable

Greater numbers of people permanently

unemployed. Misery widespread.

Fewer people can afford the products of

capitalists, so fewer companies survive.

Class struggle reaches a climax.

Conditions now ripe for revolution. The

proletariat, having nothing to lose but their

chains, rise up.

Communist Revolution

Revolution will eliminate private property.

No longer will man have the means of

exploiting another man.

Bourgeoisie will fight, so revolution will be

violent.

A dictatorship of the proletariat will follow

to weed out remaining capitalist elements.

The Worker’s Utopia

In the end, a classless society with no more

oppression or internal contradictions.

People will be free to choose how they

labor, and can be creatively productive.

They will be able to live to their fullest

potential. Consider the description in

Marx’s Communist Manifesto in 1845:

The Worker’s Utopia

“In communist society, …nobody has one

exclusive sphere of activity but each can

become accomplished in any branch he

wishes,… to hunt in the morning, fish in the

afternoon, rear cattle in the evening,

criticize after dinner, … without ever

becoming hunter, fisherman, herdsman or

critic.”

Communist Manifesto

Read the first chapter of the document and

answer the discussion questions

Answer the question of the day

Negative Aspects of Socialism

Disadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.

Critics of socialism claims that it creates distorted or absent price signals, results in reduced incentives, causes reduced prosperity, has low feasibility, and that it has negative social and political effects.

Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moral rights, which are central to their conceptions of freedom and liberty.

Negatives Continued

Socialism requires a huge government and a massive bureaucracy. With limited privatization and more people being in government jobs, there is greater corruption and only a small group of people sitting at the heights of power tend to get richer. Socialism aims to create socioeconomic equality but in the process ends up creating a small super elite populace comprising of people in power and a huge non-elite who works for the government with little incentive to be productive since performance outcome is compromised

because there is little or no competition.