AP World History – Unit 4
Capitalism causes
Socialism which eventually
causes Communism
Makes sense, right?
Socialism
Ancient roots

Judeo-Christian belief in the common good,
which takes precedence over individual
desires.
The term “socialism” was coined in 1827
by British socialist Robert Owen.

He wanted 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 & government.
Wait…what is the
difference between Liberals
and Conservatives?
Conservative
Beliefs and Policies
Believe in:






Personal responsibility.
Limited government.
Free markets.
Individual liberty.
Traditional values.
A strong national defense.
Believe the role of government should be to
provide people the freedom necessary to pursue
their own goals.
Conservative policies generally emphasize
empowerment of the individual to solve problems.
Liberal
Beliefs and Policies
Believe in governmental action to achieve equal
opportunity and equality for all.

It is the duty of the State to alleviate social problems
and to protect civil liberties, both for the individual and
for all humankind.
Believe the role of the government should be to
guarantee that no one is in need.
Believe that people are basically good.
Liberal policies generally emphasize the need
for the government to solve people's problems.
And now back to fun
stuff about Socialism…
Socialism’s principles
Egalitarianism (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.

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, etc.
What’s different about the U.S.?
What is the comparison
between the Social
Democracy and Marxism?
Social democracy’s similarities
with Marxism
Views 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,
other wise know as “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 is not abolished.

The public should control the use of property
and make necessities available to all.
Individual rights not abolished.

It should complement other important values
such as concern for others.
Change can occur through an evolutionary
process that uses democratic means.
So, what does
Mr. Marx think?
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.
Now for some terms that
are fun to say. 
Define Marxist Terms
Bourgeoisie:
 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 Marxist Terms
Proletariat:
 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.
Overtime, an economic system becomes
rigid and cannot adjust to new
technologies.

Eventually 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
Steps for change
1. Slave system gave way to feudal
economy.
2. Feudal economy broke down with growth
of manufacturing, towns, navigation &
transportation, which causes the
emergence of middle class.
3. Industrial capitalism emerged, with only
two classes: proletariat and bourgeoisie.
What are the Pros and
Cons of Industrial
Capitalism?
What is the difference between
Commercial and Industrial
Capitalism?
Industrial Capitalism
Negative Effects
Destroys important human values

Replaces religious belief with naked
exploitation.
Undermines an individual’s sense of
personal value in one’s work.
Undermines human relationships.

All relationships are based on cash.
Destroys human freedom.

The only freedom it protects is free trade.
Industrial Capitalism
Positive Effects
Unprecedented exploration and
technological advancements.
War less likely.
Urbanization opens people’s minds to new
ideas.
Economic production centralized, leading
to favorable conditions for communism to
emerge.
Can you feel it?
It’s right around the
corner….it’s almost here.
Communist Revolution Inevitable
Capitalism creates huge factories.
Workers become concentrated and begin
to organize for legal reforms.

Higher wages and better working conditions.
Their efforts 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.
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.
So, how does
Capitalism compare to
Communism?
COMMUNISM
Laborer works for the
collective good.
Organized by state, in
short term to benefit all.
Wealth distributed
according to need.
Promotes equality of
condition.
Creates classless society
of cooperation and
collectivity.
State eventually
disappears.
CAPITALISM
Laborer works for
individual gain.
Organized by free
market forces.
Wealth distributed
according to ability.
Promotes equality of
opportunity.
Creates incentive for
individuals to work hard
and innovate and
prosper.
System works naturally
without regulation.