Capitalism Socialism Communism Fascism

Table of Contents

 The various –isms are social, political, economic and philosophical ideologies that
have defined the modern world
 Important to understand world history and contemporary politics

CAPITALISM

Capitalism is a social and economic system based on private ownership of the means of production and free market system of trade-their operation is for profit Means of production- Farm-land, Factory any other resource

CHARECTERISTICS

 Private ownership
 Wage labour
 Capital generation
 Competition

Origins

Breakdown of serfdom and feudal systems in England led to development of free markets and capitalism
 Now labour was paid wages
 Surplus produce from farms – markets/trade
 Better product- more money – innovations

Industrial Capitalism

Advent of Industrial revolution in mid 18th century led to development of mainly two classes in
society
 Capitalists – owners of means of production
 Workers/Labour
 Clerks/engineers – small middle class

Consequences

 Horrific conditions of workers-housing ,health
 Income inequality
 Child labour
 Hunger
 Population increase
 Rapid Urbanization
 Pollution

While Capitalism has also led to this

Adam smith

1776- The Wealth of Nations
‘’Supply and Demand’’
Who is he?
• State intervention in economy
• Cycles of boom and bust
• Fiscal and monetary policies
• Influenced the Bretton woods system

SOCIALISM

• An Umbrella term – a number of variations
• Population collectively owns and controls means of production. The distribution of results is proportional.
• Welfare state
• It emphasises on providing same set of opportunities despite coming from different class-rich or poor.
• Ex: College education in Nordic countries vs. College in USA

• Socialism began in mid 19th century (1830- 1860) when many thinkers described a state of ‘Utopia’ – ideal society.
• From socialist thought arose communism. Socialist principles also mixed with capitalist elements in modern nation states.

COMMUNISM

Social, economic and political system which aims to establish a communist society – where means of production are owned by the people and not any group/class

Characteristics

• Classless and division less society
• No state or government
• No money based economy

MARXISM
Karl Marx (1818-1883)
The Godfather of Communism/Marxism
Fredrick Engels and Karl Marx developed the philosophy with their works.

Highlights of Marxism

 Class – Proletariat- Workers Bourgeoisie – Capitalist/owners
 Conflict and class struggle
 Revolution
 No money or concept of private ownership
 Capitalism –Socialism– Communism

The Russian Rev. & Leninism

 The philosophy of Marx was brought to life by the Russian revolution of 1917 under the leadership of Vladimir Lenin
 He propagated the idea of a vanguard party to establish a communist state via socialism .
 Party system – leader of the people/workers
 ‘’Dictatorship of the proletariat’’
 Practical ideology ,not utopian
• Nationalisation- State ownership of property State capitalism
• Socialisation- Ownership by people (idealist)

Downfall of Communism/USSR

 Great vigour and success initially
 In practical implementation it could not succeed in the long run.
 No incentives to work harder
 No innovations
 Collectivization and state ownership led to low morale of farmers and workers

Variations of Communism

*Communism is part of Socialism but not vice versa
Broadly two types of communism
1.Orthodox
Marxism
Leninism – USSR
Marxism Leninism – Cuba , CPI ML (India)
Maoism – PRC ,Laos, Vietnam
2.Social Democracy (mix of capitalism and socialism) France Sweden Norway and many other countries

The single party communist states today People’s Republic of China – Maoism (peasant
revolution)
Cuba –
Laos
Vietnam
North Korea – Juche (Self reliance)

The boundaries are blurred

No Country is purely socialist/communist/capitalist
 USA – Medicaid ,social security
 USSR- huge development of industry – capital generation
 Russia – Very poor socialist welfare schemes
 China – Partially a free market
 India – State control of heavy Industries, Planning
 Nordic – heavy Social welfare + free market enterprise

FASCISM

NAZI -National Socialist German workers party National Fascist Party – Italy Argentina Spain

Main Characteristics

Believed that egalitarian democracy will lead to crises
One party dictatorship
Total control of state and people –TOTALITARIANISM
Strong society – no weakness
Use of Violence to remove weak links
Cultural purity – one group and one race – NATIONALISM
Economically –
No Marxism No Capitalism
Unions Volkswagen(for state)
Self reliance