Economy

Question 1

Introduction - Themes

Answer 1

• Capitalism
• Collectivism
• Equality

Question 2

Introduction - Argument

Answer 2

They all agree on the principles of a socalist economy and what it should promote, however, they fundamentally disagree on how to achieve these goals

Question 3

Capitalism - Agree - Point

Answer 3

All socialists recognised that an economic system based upon private property and capitalism can be hugely problematic. They argue that capitalist ideas of competitiveness, egotism and self-interest are a serious threat to socalist values

Question 4

Capitalism - Disagree - Point

Answer 4

• Revolutionary socailists completely reject the notion of capitalism and argue that it must be replaced by a different system
• Social Democrats feel that socialism is possible with a capitalist economy

Question 5

Capitalism - Disagree - Example
(Revolutionary)

Answer 5

Marx and Engels argued that dialectical materialism led to the belief that capitalism was historically doomed. They argue that capitalism promoted exploitation, alienation and oppression - they made it clear that capitalism must disappear before socialism could take hold

Question 6

Capitalism - Disagree - Example
(Revisionist)

Answer 6

Crossland argued that reformed capitalism prescribed by John Maynard Keynes would help to achieve a socalist society better than its total rejection

Question 7

Common Ownership - Agree - Point

Answer 7

The socialist economy for all groups placed much more emphasis on the whole of society rather than a few enterprising individuals. This has led socalists to seek to rectify problems caused by capitalism such as promote redistribution of wealth

Question 8

Common Ownership - Disagree - Point

Answer 8

• Democratic socialists argue that common ownership was important to socialist beliefs, a more collectivised economy, they argue, will make a more stable and manageable economy
• Third Way socalists feel that common ownership is much less important to creating a socialist economy and promote privatisation

Question 9

Common Ownership - Disagree - Example
(Democratic)

Answer 9

Tony Benn said we needed the ‘politics of Robin Hood - taking from the rich and then giving to the poor.’ The original Clause IV of the UK Labour Party’s Constitution committing the party to nationalisation was championed by socalists like Beatrice Webb

Question 10

Common Ownership - Disagree - Example
(Revisionist)

Answer 10

Giddens believed the economy should be neo-liberal - privatised and deregulated. It was Third Way socialist Tony Blair who changed Clause IV to no longer commit the Labour Party to complete nationalisation

Question 11

Equality - Agree - Point

Answer 11

All socialists accept the view that free-market capitalism generate huge inequality of outcome, which for socialists, is incompatible with equality of opportunity, self-determination and social justice. They all argue that in order to resolve this there should be extensive public spending

Question 12

Equality - Disagree - Point

Answer 12

• Revolutionary socialists have taken the stance that there should be equality of outcome which means high taxes
• Revisionist socialists agree that the state should advocate for equality of opportunity instead

Question 13

Equality - Disagree - Example
(Third Way)

Answer 13

Giddens accepted more neo-liberal ideas, he was accepting that greater equality of opportunity might have to be accompanied by greater inequality of outcome - he argued that this would not compromise socialist principles as they would be enhanced through the increased public spending

Question 14

Equality - Disagree - Example
(Revolutionary)

Answer 14

Karl Marx and Rosa Luxemburg felt allowing inequality of outcome in one generation will lead to inequality of opportunity in the next. Therefore, they believed in very high taxes and complete redistribution of wealth