The Rise of Communism What are the main

The Rise of Communism What 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

• 1. Marx & Engels argue owners control “means of production” while the workers control nothing, which creates two warring classes: 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 selfinterest thru competition, causing good wages. Consumers determine what products are needed. Supply & demand effects prices Government should not interfere in the economy Self interest leads to greed, so businesses takes advantage of workers Goods should be divided according to people’s needs, public sets the price. Community or Govt should plan the economy

• What is communist or capitalist? Communism 1. 2. 3. 4. 5. A public owned phone company has decided to raise your rates: You are a farmer and sell your food to either Albertson’s or Vons, depending on who pays more: Capitalism I cannot afford health insurance and public tax money will pay my medical bills: Communism Mc. Donald’s introduces a $. 99 cheeseburger, so Burger King does the same thing: Capitalism Government plans on needing 100 cell phones this year Communism