The Rise of CommunismThe Rise of CommunismWhat are the main differences between

communism & capitalism?

Karl Marx Frederick Engels

A Radical Form of Socialism• In response to Capitalism, a new economic system called socialism

gains popularity

• Socialists argued factors of production should be owned by the public and operate to benefit everyone

• Socialism would end poverty, promote equality & create social justice

• 1849: Karl Marx (German journalist) & Frederick Engels (son of factory owner) wrote a pamphlet called The Communist Manifesto

•Manifesto calls for a more radical & complete form of socialism, called communism

•Marx & Engels say capitalism has created division in society

owned by

• Marx & Engels argue owners control “means of production” while the workers control nothing, which creates two warring classes:

1. owners known as the bourgeoisie (“haves”)

2. workers known as the proletariat (“have-nots”)

• Marx states proletariat will violently rise up against the bourgeoisie

• Workers will have a worldwide revolution & when they control the means of production, the world will have equality

“The proletarians have nothing to lose but their chains. They have the world to win. Workers of the world unite”. - Karl Marx

Capitalism Communism

Individuals own property & the means of production

People (community) should own property & means of production

Businesses follow their self-interest thru competition, causing good wages.

Self interest leads to greed, so businesses takes advantage of workers

Consumers determine what products are needed. Supply & demand effects prices

Goods should be divided according to people’s needs, public sets the price.

Government should not interfere in the economy

Community or Govt should plan the economy

• What is communist or capitalist?

1. A public owned phone company has decided to raise your rates:

2. You are a farmer and sell your food to either Albertson’s or Vons, depending on who pays more:

3. I cannot afford health insurance and public tax money will pay my medical bills:

4. McDonald’s introduces a $.99 cheeseburger, so Burger King does the same thing:

5. Government plans on needing 100 cell phones this year

Capitalism

Communism

Communism

Capitalism

Communism