19th century. Much of his work and most of hisextensive writings were done in colJaboration withFriedrich Engels (1820-1895) Together, Man:and Engels wrote The Communist Manifesto in1848-"to do for history;," as Engels later said,"what Darwin's theory haSdone for biology"

Marx bcJievedthat Glpitalismwas fatallyflawed.The proletariat-the workers-\vere being sobadJy abused by the bourgeoisie--the ClpitaJ-ists-th;;t they were certain to rise up and over-throw the capitalistic system. You will read morcabout Marx and his ideas in the next section.

Socialism is an economic and a political philoso-phy based on (he idea mat me benefits of eCO-110mic acr.ivity-we.alth-should be eguitdblydisrribured throughout a societ),. This fdirness isdchie.vcd through the. principle of colkctivc-that is, public--ownership of the most impor-tdnt means by which goods and services arcproduced and distributed.

Socialism rejects the concepts of private own-ership, individualism, and competition for profitmar lie at me heart of capitalistic mought andpractice Instedd, socialists emphasize coopera-tion and social responsibility in order to achiever.hismore equitable distribution of both incomeand opportunity. Political equality is not enough,mey say. Real equality can come only whenextreme differences in wealth across the popula-tion arc reduced, and the public controls thecenters of economic power in a society.

The roots of socialism lie deep in history.Almost from the beginning there have .beenmose who have dreamed of a society bUilt onsocialist doctrine. Most earlier socialists foresawa collective economy that would arise out of andmen be managed by voluntary private action.With few exceptions, they believed that theycould reach their goals without governmentalaction-and, so, early socialist doctrine is orrencalled "private socialism."

Socialists and Communis~ A powerfulsocialist movement took shape among Europeanworkers and thinkers during the middJe and latc19th century. Almost all socialists accepted Man'scriticism of capitalism. But the movement wasdeeply split by the question of how best toachieve socialism. Some argued mat a socialist·society could come only out of a "violent ~dbloody revolution." Over time, those who tookthat view came to be called communists. Ome.fS

. argued that socialism could be attained by pca"ce-.. fuI means, through the. democratic process.

Today, me terms socialism and socialist arc usuallyused to identifYthose evolutionary socialists.

The British Labour party and the major "socialdemocratic" parti<::sofW<::sternEurope arc leadingexamples of mat braI)d of socialism. At varioustimes in recent history,VJcscparties have controlledtheir governmenr.sand have instituted many sOcial-ist programs through dem<X:r.lticmeans.

Both capitalistic and socialist· economies havetheir strengths and their weaknesses. For sup-porters of capitalism, it is easy to see weakpessesin the theory and practice of socialism. For sup-porters of socialism, on the other hand, it is capi-talism that is riddled with faults.

Critics say socialist countries have a tendencyto develop too many layers of bureaucracy, Theysay this complicates decision making and has adeadening effeer on individual initiative. As aresuJt, critics say, socialist economies arc slowerto take advantage of new technologies.

In the eyes of socialism's critics, the smoothrunning of an economy is too complex to bedirected by central planners. Too many unpre-dictable events arc involved, they claim. Toomany clashing interests are at stake. For all itsfauJts, the invisible hand of the market economyworks more efficiently than tl1e visible hand ofthe command economy, say socialism's critics.

Anomer criticism is that socialism deprivespeople of the freedom to decide for memsclveshow to use their income. Most of a person'sincome goes to taxes. Since earners get to keeponly a part of meir earnings, they have linkincentive to \York harder and earn more. Vlhywork hard when your basic needs will be takencare of anyway>So ask socialism's critics.

Present-day socialism developed in large part asa reaction CO me poverty and other miseries thataccompanied the Industrial Revolution.

The Industrial Revolution occurred as theWestern world moved from an agricultural to anindusr.rial economy. It appeared most distinctlyin Great Britain in me late 18th century andspread generally through Western Europe andto the United States in me 19th century. It wasmarked by rapid urbanization and the growr.h oflarge-scale manufacturing;

Many observers of 19m-century British hcto-ries and factory towns were appalled by the con-ditions mey found. Men and women oftenworked 14- co 16-hour days-usually in filthy,noisy, and unsafe conditions. Small children reg-ularly worked alongside their parents, for evenless pay Most factory workers and their familieslived in dank, crowded, and unhealthful slums.

Those and other adverse effects of the Indus-'al Revolution led many to seek social and eco-

dOmic reforms. And those conditions led someto argue for much more radical change.

Karl Marx Clearly, Karl Marx (1818-1883),me farner of modern· day socialism, was the mostsignificant critic of capitalism to emerge in the

In response, socialists point to the inequalitiesofweaJth and powcr that exist under capitalism.SociaLists argue rhar socialism evens out inequal-ities and (hus is morally superior to capiraJism.J n their view, socialism makes political democra-cy work more smood1Jy by suppkmencing it\\~th economic dcmocracy.

Dcfendcrs of socialism also argue that itgives workers and ordinary citizens more con-liol ovcr their daily livcs. Undcr capitalism,they say, a company's managcment can abrupt-ly decide to close a factory that is no longcrmaking moncy. Thc company has no obliga-tion to ask its workers' opinions, ev.en thoughsuch a decision can throw thousands out ofwork and disrupt an entire community. Thiscould not happen under socialism, the argu-ment gocs. Workers and community leaderswould sit on the company's board. Theywould help decide what was best for the entirework force and communitY-not just for thecompany's shareholders.

What is communism> From the mid-1940son ro the early 1990s, much of American

foreign policy was aimed dr counte~jng theinfluence of communism in the world. Yet, eventoday, many Americans do not have a very clearunderstanding of th3t doctrine.

ComJllunism as it is known in roday's worldW3S born in Europe in the middle of the lasrccnruryS 1t is a political, economic, and socialtheory builE by Karl Marx and then, especially inthe Soviet Union, by Vladimir Lenin and JosefStalin 6

Karl Marx's Communist Theory

Communism is often called a collective ideologyThat is, it is a theory that calls for the collective,or state, ownership of all land and other prOduc-tive property. As you have read, its basic conceptswere first set. out in The Communist Manifesto,written in 1848 byI<ar1 Man:: and Friech1chEngels. This politi~al document condemned themisery and the exploitations of the IndusuialRevolution in .Europe, and it called uponoppressed workers across the continent to freethemselves from Ucapitalist enslavement. '" Thepan1phlet ended Vv'ith0:is rallying cry:

"The prolctari:lJ1s h.ve nothing t~ ·iru:c . but theirchains. They h.ve • world to wiD. ·Worl::in~~~ ~f 411countries, lllIite'" .

2. How docs socialism differ from capitalism>3. What part did the Industrial Revolution playin the birth of modem socialism?4. State two criticisms of socialism and twO crit-icisms of capitalism.

Critical Thinking5. Making Comparisons How might asocialist and capitalist government differ in theirtreatment of the problem of nncmploymcnt?

In his major work, Das Kapital (first pub-lishcd in 1867), Marx analyzed the dcvelop-ment and workings of capitalism. from· itshistorical roots. It prcsented Marx's view of cap-italism based on four closely relatcd concepts:(1) his theory of history, (2) the theory of valueand capitalist accumulation, (3) his view of thenature of the state, and (4) the dictatorship ofthe proletariat. .

Bascd on his idcology, Marx envisioned com-munism as a ufrec, classless society"'-a societyin which all social classes wouJd vanish and allpropcrty would be owned by all people in com-mon. There wouJd be no exploitation of laborand no nncmployment. Goods would be pro-duced in abnndance, and they would be avail-able to all according to need. People would behappy to work hard, pleased to contribute theirbest for thc benefit of all.

SThe word communirm comes from the Ltin com-munis, meaning "common, belonging to all.n The· ide!of communal property d.tes b.ek at least to the earlyGreeks. In the fourth cenrury B.C., PI.to proposed a sys-tem of communal property in. Thc Republic.

6Stalin, and other commUnists in the Soviet Unionand elsewhere, frequently referred to the ideology asMarxist-Leninism. MMX origin411y used the term scien-tific socialism to clistinguish his thought from older andless extreme forms of socialis·rn. In hter years, Marxome to prefer the term communism.

The Marxian View of History To Marx,aU of human h.istory has been a story of classsuugglc-of conllier among SOCIalclasses com-peong fo: me control of labor and of produc-uve property. In char view, ulere have alwaysbeen r\Yo major and opposing classes in soci-cry-Ol1e an oppressor class <lnd [he orher anoppressed class. Thus, in the Middle Ages thecomending classes were Ul<: nobiJiry and theirserfs In the modern world jt is the bourgeoisiewho keep me proletariat in submission.

Marx's docu1.ne held that the conflict berweenme classes would become so in[ense in me mod-ern era tha t a revolt of the masses and the down-fall of me bourgeoisie would be inevitable Thecommunists' political role was that of speedingup these revolutionary processes, by violence jfneed be.

The Labor Theory of Value In the com-munist view, me value of every commodity is setby the amount of sociaUy useful Jabor put intoit. In short, labor creates all value. A pair ofshoes or a rebuilt engine is each worth so muchbecause it takes that much labor to produce it.Because the laborCf made the shoes or rebuiltthe engine, the communist argues that melaborer should receive that value in full.

Marxists reject the fre~ enterprise notions ofcompetition and profit. Competition, they say,forces the capitalist to drivcwbrkers"wagesdown to the lowest possible point. Profits arecondemned as "surplus value,'? wrung from thegrinding toil of the masses.

The Nature of the State. Mari saw-the stateand its government astheil~trurnent of the domi-nantclass'in society-a tool bywhich the capital-ists m;lintained their poWCl aridprivilegc.d ·poSition.Othe; social institutions were alsO seen .~ playing arole in enforcing capitalist control over the masses.Thus, Marx described religion as "the opiate ofthe people." Religious beliefS, he wrote, arc a drugfed to the masses, a hoax through which they arepersuaded to tolerate their harsh lot in this life inthe hope that someday they will gain what Marxc.alled a "fictional afi;crlik"

The Dictatorship of the Proletariat Marxdid not believe that the final form of communistsociety would appear immediately upon theoverthrow of the bourgeoisie. He saw the needfor a transitional phase during which the state

. would represent' and enforce the interest of themasseS. This was caUed, in Marx's terminology,the "dictatorship of the proletariat" -a period ofauthori tman rule through which society mustpass on the way to the goal of a classless society.He a.rgued that once the goal of c1asslessness wasrealized, the need for the state and its govern-ment would disappea.r.

Marx also expected that me bonds of com-mon in terest between wo~kers in differemcountries would be so strong that they wouldoversh<ldow notional identities and mtional loy-alties Thus, for example, he [hought untFrench and German facwry work~rs\voujdcome rogemer on [he basis of their shared eco-nomic situztion-and. so nationalism, a majorcause of European W3rs, would be eliminatedwith the establishmenr of communism.

Marx was convinced that the world's mostadvanced industrialized countries, with theirlarge working-class populations, were ripe forrevolution. In particular, Marx expected thatworkers' revolutions would occur in France,Germany, and Great Britain, and then in. the

. United States. But, that revolution actuallyoccurred in the largely agricultural Russia in1917; and with that upheaval came the creationof the world's firstc6~munist state?

Marx's analysis of capitalism did not provide,a real bJueprint--or anything close to one-forthe formation of a communist society. This leftthe leaders of the Russian communist revolutionwith the task of interpreting his ideas for clueson what was to be: done.

71nhis laler years, Marx did recogniz-e the possibilityth'l his theories might firsl be: tested in pr.ctice in RllSSi •.

Lenin also rook the Russi.-firsl view, in the e>rJy1900s. He thDughr th.t Ic:ss >.dvanced countries withtheircompantivc:ly smaU indusrrial populations, ;fferedecnalO advantages ro >. revolutionary movemenr-notably, the dfectiveness with which workers could be:organiz-ed and controHed.

1. Define: communism

2. On what four closely related concepts didMa.rx build communist ideology>3. (a) Where did Marx believe the first commu-nist societies would appear> (b) Why>Cri tical Thi.n.ki.ng

4. Drawing Conclusions Recall thestatement on page 2-"The proJcurians have: nothing ro Jose bur theirchains_ They have •• world ro win. Workingmen of allcountrics, unite!',

What do you think. this statement means>

Communism and Sodalism or Free Enterprise/Capitalism'Who S ouId control the wealth produced by a nation - the government or individuals?

Comrou ism and Socialism'A politic I and economic philosophy based on governmental ownership/control of the means ofproductio (productive property such as farms, businesses, industries, etc) to insure that thewealth th t is produced will be equitably distributed throughout society_ This is meant to doaway wit the social class 'system where the upper class can abuse the lower class, Even though acommuni t government enforces a strict socialist economic system, some communistgovemm nts do allow a limited amount of free enterprise to exist in an effort to increaseproductiv ty and efficiency .• Commu ism is a political philosophyIlSocialis 1 is an economic philosophy

/Free Enter riseAn econo ic system based on ownership/control of the means of production by privateindividua s or corporate groups who share in the wealth that is produced.Capitalis mainly exists uDder a democratic form of government because people are permittedto make c 10ices in government and the economy_ However, in an effort to curb the abusescaused b a complete Laissez Faire capitalistic system such as existed in the US and Britain inthe 1800s democratic governments have established rules and regulations that place governmentcontrols the operations of business and industries, These government regulations are a form ofsocialismll!IDemocrcy is a political philosophy_Capitali m is an economic philosophy

Karl Ma x 1818-1883Father of odem-day communismJewish i igrant from Germany living in London in the mid-19th centuryPubJishe The Communist Manifesto along with Friedrich Engels in 1848 as an outline of hisideasBelieved he history of society was a history of class struggle - Ex: The Industrial Revolution(19th cen ury)

Marx con enmed the misery and exploitation of the industrial working class (Proletariat) ofEurope b the wealthy capitalist class (Bourgeoisie)II!IOppressd workers generate the wealth but don't share in it - posses little or no political poweraGreedy apitalists control the wealth they did nothing to create - posses great political power.Saw co fliet as inevitable - workers VS, capitalists

ved workers should rise up and seize both political power and the means of, The existing government would be replaced by authoritarian rule in order to abolish

capitalis and establish communism. The result (in theory) would be the creation of acommuni t state in which all people live in a "free, classless society" and the people in commonwould 0 n all property and the means of production, and the wealth would be shared by all.-no une loyment

yshares in the work and in the wealth produced

Ultimatel " the need for government \vould cease as people worked for the good of all andshared eq ally in the wealth they produced - a Utopian society.

Tbe So iet Union (1917-1991)The firs country to establish communism was Russia in 191 . The Bolshevik Revolution underVladimi Lenin led to the creation of the first communist countr~/ - the Soviet Union. FollowingLenin's eath in 1924, Joseph Stalin ruled the Soviet Union with an iron hand. As a dictator from1926 un i1his death in 1953, he used repression and brutality to for e his concept of acommu 'sm on the Soviet people resulting in the death ofmillions. During the Cold War, JosephStalin b carne the personification of all that Americans feared about communism_ In the end, theSoviet nion and its commW1ist government collapsed due to it's inefficienc - as an economicsystem nd the people's desire for greater freedoms in government and the econom '.

Reason for opposition to Communism1) Co unism is seen as a threat to the ideals of individual freedom, democrac " and freeenterpri e.2) Com unism takes away competition, initiative and profit as incentives for produ ti -i ;.3) Co unism opposes/suppresses the practice of religion.4) Co unists advocate violent revolution as the means of achieving political po :ver. Howe er,socialis tend to be less violent and are generally willing to work through the existingdemocr tic process to achieve power.5) The i ealistic goals of cOffiffiW1ismcan never be fully achieved.

The Col War resulted from the conflict and competitio-n for dominance in the world betv.;eenthe lead ng communist nation (the Soviet Union) and the leading Democratic nation (the S.