Responses to CapitalismResponses to Capitalism

California Content Standard California Content Standard 10.3.610.3.6

Scientific Objective QuestionScientific Objective Question

Analyze the emergence of capitalism as a Analyze the emergence of capitalism as a dominant economic pattern and the dominant economic pattern and the responses to it, including Utopianism, Social responses to it, including Utopianism, Social Democracy, Socialism, and Communism.Democracy, Socialism, and Communism.

Over ViewOver View CapitalismCapitalism is an economic system that emphasizes profit and private is an economic system that emphasizes profit and private

ownership. In capitalism, the ownership. In capitalism, the factors of productionfactors of production – such as land and – such as land and other natural resources – are owned privately, by wealthy business other natural resources – are owned privately, by wealthy business owners and investors.owners and investors.

Critics of capitalism say the system creates profit for owners and Critics of capitalism say the system creates profit for owners and investors, but not for workers. investors, but not for workers.

During the Industrial Revolution, many workers labored in poverty and During the Industrial Revolution, many workers labored in poverty and under dangerous conditions. under dangerous conditions.

New systems of thought arose in response to such problems.New systems of thought arose in response to such problems.

UtopianismUtopianism Basic IdeaBasic Idea: people live and work together, sharing goods and property.: people live and work together, sharing goods and property.

Utopian communities based on cooperation and sharing. Utopian communities based on cooperation and sharing.

A number of these communities were founded in the early 1800.A number of these communities were founded in the early 1800.

Most being formed by small groups of people In rural areas and did not Most being formed by small groups of people In rural areas and did not last for long.last for long.

But a few, such as the Amana colonies in Iowa, were sizable and But a few, such as the Amana colonies in Iowa, were sizable and existed for more then a century after their founding.existed for more then a century after their founding.

SocialismSocialism Basic Idea:Basic Idea: the factors of production are owned by the the factors of production are owned by the

people, in part, and are used for the benefit of all.people, in part, and are used for the benefit of all.

Many socialists believed that capitalism was the cause Many socialists believed that capitalism was the cause of moral and ethical problems, Such as child labor and of moral and ethical problems, Such as child labor and lower wageslower wages

They thought people could work together to solve They thought people could work together to solve these problems and plan for a more fair economy.these problems and plan for a more fair economy.

Nineteenth-century socialists played important roles Nineteenth-century socialists played important roles in the labor movement.in the labor movement.

CommunismCommunism Basic Idea:Basic Idea: workers should take control of all the workers should take control of all the

factors of production.factors of production.

Communism is a type of socialism where that it is Communism is a type of socialism where that it is often associated with revolution. The term often associated with revolution. The term “communism” became famous in the book “communism” became famous in the book Communist Communist ManifestoManifesto by Karl Marx and Fridrich Engels, published by Karl Marx and Fridrich Engels, published in 1848.in 1848.

Marx and Engels emphasized revolutionary struggle Marx and Engels emphasized revolutionary struggle as a means of achieving a society in which all people as a means of achieving a society in which all people were economically equal.were economically equal.

Social DemocracySocial Democracy Basic Idea:Basic Idea: government plays a role in managing government plays a role in managing

production and provides certain social services.production and provides certain social services.

Social democrats believe that the government should Social democrats believe that the government should play a role in the economy in order to make sure play a role in the economy in order to make sure people receive certain benefits, such as health care people receive certain benefits, such as health care and education.and education.

Social democracy developed in the 20Social democracy developed in the 20thth century out of century out of socialist ideals. socialist ideals.

It is the dominant system in many European nations It is the dominant system in many European nations today.today.