Competing Economic Philosophiespacket #12
Competing Economic PhilosophiesPacket #12
S. GerhardtGlobal II
SWBAT: Identify and explain the fundamental difference between Marxist Socialism and Laissez Faire economic philosophies.
DO NOW: Read the following passage and answer the questions in FULL SENTENCES
Submission from Manchester's Factory Children Committee sent to the House of Commons in 1836.
“We respect our masters, and are willing to work for our support, and that of our parents, but we want time for more rest, a little play, and to learn to read and write. We do not think it right that we should know nothing but work and suffering, from Monday morning to Saturday night, to make others rich. Do, good gentlemen, inquire carefully into our concern.”
(Passage courtesy of Ms. Napp)
- What are the children asking for? ______
- Who are the children directing their pleas at? ______
Laissez Faire Capitalism (Market Economy)
The theory of Laissez Faire argued that businesses should be allowed to operate free of government regulation
1776 – Adam Smith wrote the Wealth of Nations which promoted laissez faire ideas
This theory became the basis for capitalism, said that the economy should be governed by natural forces of supply and demand and competition among businesses
Socialism
Concentrated less on the interests and rights of individuals and more on the interests of society
Socialists claimed capitalism created a large gap between the rich and the poor
Marxist Socialism
German philosopher Karl Marx promoted a more radical theory of socialism
1848 – Karl Marx and Fredrich Engels (German economist) explained their ideas in the Communist Manifesto
The Communist Manifesto
History was a class struggle between wealthy capitalists and the working class (proletariat)
In order to make profits the capitalists took advantage of the proletariat
The proletariat would eventually rise up and overthrow the capitalist system – creating its own society
The proletariat society would take control of the means of production and establish a classless society, in which wealth and power would be equally shared
Wrap-Up & Review:
Karl Marx (1818-1883) was a philosopher. He co-wrote and published The Communist Manifesto with Friedrich Engels in 1848. According to Marx and Engels, capitalists exploited or mistreated workers. However, workers created the capitalists’ wealth and therefore, workers, not capitalists, should control the factors of production. Workers needed to unite and overthrow their capitalist overlords.
The last lines of The Communist Manifesto:
“Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win.
Proletarians of all countries unite!
1. Describe the treatment of workers at the beginning of the Industrial Revolution. ______
2. Who was Karl Marx and what did he believe? ______
3. According to Marx, why should workers control the factors of production? ______
4. According to Marx, what do workers have to lose and what do they have to gain? ______
(Passage courtesy of Ms. Napp )