Capitalism, Communism, Socialism & Marxism

Question 1

Define Capitalism.

Answer 1

An economic system, created by Adam Smith, in which a country’s trade and industry are controlled by private owners for profit.
Capitalism contains:
- profit incentive ideologies
- social classes
- continuous growth (if successful)
-owners vs workers
- private businesses and private ownership
- limited government interference
- economic freedom
- focus on individualism
- free trade (laissez-faire)
- paid for social services

Question 2

Define communism.

Answer 2

A theory or system of social organization in which all property is owned by the community and each person contributes and receives according to their ability and needs. It follows the idea of equality.
Communism includes:
- Equality: equal treatment and sharing of wealth
- a classless society
- emphasis on the whole community rather than the individual
- no workforce exploitation
- no private property or private ownership
- not a lot of choice
- all services provided
- against individualism
- necessity > desire
- no government or state ownership (this is what makes it different form socialism)

Question 3

Define socialism.

Answer 3

A political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. Similar to communism, but includes a state/government, where communism does not.
Socialism contains:
- a compromise between the other two ideologies (though that is not really true)
- Equality: equal treatment and sharing of wealth
- a classless society
- emphasis on the whole community rather than the individual
- no workforce exploitation
- no private property or private ownership
- not a lot of choice
- all services provided
- state plans and regulates all economic activity
- state ownership of means of production and distribution

Socialism is often seen as the stepping stone between capitalism and communism. Theoretically, when the communist idea is adopted the government can fall away. Therefore, pure communism has never technically existed - there’s always been a govt involved.

Question 4

What is the difference between socialism and communism?

Answer 4

Communism does not believe in the ‘state’ or ‘government,’ whereas socialism does.

Question 5

Who is Karl Marx?

Answer 5

A German philosopher and the creator of Marxism and the Marx theory. He co-wrote the Communist Manifesto in 1848 along with Engels, and wrote his theories down in ‘Das Kapital’ in 1867.

Question 6

What is the Marx theory?

Answer 6

The Marx theory states that all history is based on a class struggle: wealthy and powerful against poor and powerless. The theory includes the idea of the bourgeoisie (owners of land/factories/businesses etc) taking advantage of the proletariat (the working class).

Question 7

Describe Marx’s theory of how societies develop.

Answer 7

Early society — [agricultural revolution] —> Feudalism — [industrialisation/ trade revolution] —> Capitalism — [early proletariat] —> Socialism/Early Communism —> (Ideally) Pure Communism

Question 8

Summarise Karl Marx’s ideas about society (according to PPT on classroom)

Answer 8

Full industrial society —> clash between classes —> armed revolution by working class —> dictatorship of the proletariat —> nationalisation of resources to redistribute wealth —> socialist state —> no need for govt —> communist society