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who was robert owen?
extremely wealthy factory owner who was horrified with how workers were treated
He believed it was possible to pay workers fairly and treat them well and factories could still make a profit
Factory name was New Harmony
utopian socialism
the success of a business would primarily be assessed in terms of its contribution to the collective good - the idea that a perfect world can happen
what is the difference between capitalism and socialism and communiscm
Capitalism: profit motive, greed is good, self-interest, privatization, competition
Socialism: Cooperation, common good, nationalization of key industries but communism believes in violence and owning all business. Socialism also believes that you can change the system within.
Communism: All industries nationalized, violence is need for change
what is socialism biggest challenge?
economic inequality
attempting to redistribution of the wealth from the rich to low income earners
what is the main point of social programs?
redistribute the wealth between all peoples. All people benefit, most of all low incomers, but even high incomers
Socialiast elements in Canada?
Education, Healthcare, progressive taxation
Canadian Taxes
Federal GST, Some PST or HST, Local propery taxes, Federal and Provincial Income tax
Different Tax Systems
-Progressive: Higher persons income, more they pay in taxes
-Flat Tax: Everybody pays same amount in taxes regardless of income
-Regressive: More burdensome on lower income earners
Sweden
More socialist then Canada. Still some capitalstic elements, but also indicative planning and cradle to grave(extensive) social programs. Also has extremly high taxes.
indicative planning
gov’t comes up with predictions where they believe the economy is headed towards. Companies have the freedom to ignore or embrace these ideas
what were the main ideas of communist manifesto and das Kapital?
All the world can be divided into two groups
Proletariat (factory workers)
Bourgeoisie (factory owners)
will continue to exploit the proletariats
— All of history can be explained by the struggle of these two groups
-Workers need to overthow bourgeios violently to control means of production
-New society based on common good should formed
what is the main idea with communism?
loyalty to your working class, and communist party (represent workers) above all else - even above country and religon. A new society would be created. No longer production be based on profit motive but for the common good.
Did Karl Marx Believe in scarcity?
No-he though there is more than enough resources, but rich took too much
Russia in late 19th/20th century
-Backwards country
-Slow to industrialize
-Serfdom and Subsistence farming
Czar’s Nicholas II’s mistakes
-Bloody Sunday: Shot on workers protesting bad working conditions
-Entering WWI: Russia couldn’t support an army, soilders dealt with shortages, and citizens weren’t living good lives
When and what was the provinsional goverment formed in Russia?
-After revolutions of February/March 1917
-Czar was overthrown
-Problem: Wanted Russia to stay in war
Lenin in 1917
-Follower of Karl Marx
-Slogan: Peace Land Bread
-Led revolution of November 1917
Bolsheviks
Followers of Lenin
Treaty of Brest-Litovsk
Pulled Russia out of WWI in exchange for some concessions to Germany
Russian Civil War Sides
-Red Army: Communists led by Leon Trotsky, undermanned and desperate, followed war communism
-White army: Favour of return to Czar, supported by allies and wanted return to WWI, had more supplies but uncoordinated
-Non Russia Nationalites: Ukranians, other groups who wanted indepedance
War Communism
Ruthless policy which was first economic policy Lenin implemented, Red army would steal food from its own people to survive, and everything was nationalized.
Who won Russian Civil War?
Red army in 1921. Lenin took control of Russia and created USSR, first communist country.
New Economic Policy(NEP)
-Policy introduced by Leni after civil war to try to bring country of economic ruin
-Supposed to be temporary
-Some capitalist elements were allowed to exist-one step backward for two steps forward
Who replaced Lenin as USSR leader after Lenin passed in 1924?
Joseph Stalin in 1928-not as knowledgeable on Karl Marx.
What was Stalin’s main goal?
Rapid industralize USSR, up to West’s standard, so they couldn’t be easily defeated
Stalin’s two major economic policies?
-Forced Collectivization
-Five year plans
Forced Collectvization
-Soviet Farmers were given quotas and had to meet targets, een if straving
-Anyone hiding food was sent to Gulags
-Caused holodomor-Mass famine of Ukranians
too much gov’t involvement, individual and their needs becomes secondary to the state/gov’t because of the states goals
what does the Holodomor exemplify in terms of gov’t involvement?
Gulags
work and labour camps
Kulaks
Russias most skilled farmers-didn’t like Stalin’s forced collectivization, Because of this, Joseph Stalin sent them to the gulag.
Capitalism: harder you work, the better your life will be
Communism: harder you work, the reward is to the state
what were the ideas of communism and capitalist?
Five Year Plans
-All industries nationalized
-Quotas had to be met, and benefits for exceeding quotas
-Focused on heavy industries, but ignored consumer products-leading too food shortages
-These plans were brutal to citizens, but modernized USSR and turned it into superpower
Gospian?
Gov’t agency responsible for all prices of everything in the USSR. Massive bureaucracy, very inefficent
USSR factories
-Based on five year plans
-Bonuses given to factories that met or surpassed quotas
-Factories became dangerous at end of month because of need to meet quotas
-100% employment
what does 100% employment mean and why could it be deemed insufficient?
100% employment = factories are going to remain technologically behind
If everybody has job there is no innovation and industrialization in the society
3 types of Farms in USSR
Collective farms, State Farms, Private Plots
Collective Farms
-Land owned by government
-Collective owned everything else
-Collective worked farm
-Sold their goods, but always to state
-Farmers not making very much because prices were artifically low
State farm
-Like factories
-Everything owned by government
-Farmers paid by hour
-Biggest flaw: No pride-farmers don’t care if farm produces crops
Private Plots
Farmers allowed small plot of land to grow whatever and they would be able to sell it
why were private plots the most successful and what does that say about communism?
Because they were motivated by profit, they worked harder by their private plots
→ Even in the USSR, farmers weren’t motivated by common good but by profit motive
Nikkita Kruschev
Leader of USSR following Stalin. Tried to make life better in USSR. Started Destalinization-reversing some stalinist policies.
Who came after Kurschev?
Old communist leaders who followed Stalin Policies, that Gorbachev.
what were Gorbachev’s reforms?
Perestroika - economic changes. Privatization of business was allowed and are able to make profit
Glasnost - Freedom, openness. People had to be able to criticize the gov’t without fear of prosecution
When was collapse of USSR and what caused it?
1991-Boris Yeltin becomes leader of Non-Communist Russia. Debate if USSR collapse is because of Gorbachev or if just inevitable.