Changes in Economics and

Ideology
By Sasha Nast
Capitalism
Important Terms

★ Private property: a legal designation for the ownership of property by non governmental legal entities
★ Capital accumulation: the dynamic that motivates the pursuit the profit
★ Wage Labor: the socioeconomic relationship between a worker and an employee
★ Voluntary Exchange: the act of buyers and sellers freely and willingly engaging in market transitions
★ Price System: a component of any economic system that uses prices expressed in any form of money for the valuation
and distribution of goods and services and the factors of production.
★ Competitive Markets: when numerous producers that compete with one another.

Important Individuals

★ Adam Smith: Smith was often called the “Father of Capitalism” and helped explain the concept of supply and demand in
his book “The Wealth of Nations” where where he stated that the supply price is fixed but the value of it could decrease
the less there was of that thing.
★ Karl Marx and Friedrich Engels used the terms capitalistic system and capitalist mode of production in their book titled
“Das Capital” and they also used the term capitalism on occasion in the first volume of the book.
★ Milton Friedman: One of the biggest supporters of capitalism, who had the strong argument of capitalism separating
economics and politics which is highly beneficial to our society.
Capitalism
Positive Aspects

★ Marx believed that this economic system would potentially favor the working class because they are so heavily involved
with means of production. He also believed that labor power was a capitalistic commodity and also that one of the capitalist
mode of production’s most important aspects is how the surplus is extracted from workers by the owners of capital.

Negative Aspects

★ Critics associated it with aspects such as inequality to social classes and an unfair distribution of wealth. Richard D. Wolff
stated that this economy prioritizes wealth, profits and capital accomplishments rather than social aspects and needs of
communities and individuals. Many critics believed that it is a very biased system that favors the wealthy

Nations that have experimented with Capitalism

★ Singapore: They have the second freest economy in the world, and has a very open environment for their businesses and
a very transparent legal framework. They thrive in terms of judicial effectiveness, monetary freedom, and government
integrity, but have slightly more trouble in terms of business/labor freedom and property rights.
★ The United States of America: It is not a completely capitalistic society, but does identify with these characteristics in terms
of means of production being based on private ownership and operation for profit.
★ Japan: They have a collective capitalistic society which focuses on long term economic and social relationships and
workers are often paid in job security, social protections and pensions
★ No economy has ever been completely capitalistic, free market economy yet
Marxist Socialism
Important Terms

★ Use value: tangible features of an economy that can satisfy human requirement
★ Production for use: referring to the principle of economic organization and production
★ Proletariat: the class of wage earners whose only possession of significant material value of labor power.

Important Individuals

★ Karl Marx: He created this branch of economics which is based off of some of his ideology on capitalism as well as
socialism. His concept of socialism is based off of some of his ideas he explained in his book such as that socialism’s
concept is to create a type of production where man and his work are treated and viewed as separate. His ideology
such as this is the foundation and beliefs of Marxist Socialism
★ Friedrich Engels: He co-wrote two of Marx’s books and they created many of these ideas that were explained in their
work. In one book, The Communist Manifesto, they explained that they believed that everybody should be equal and
nobody should be more powerful or have power over another person.
Marxist Socialism
Positive Aspects

★ It created a system of equality due to its importance placed on human rights, which overall was beneficial to a society
due to the equity of classes in its ideology. It also helped with capitalism and union rights by creating a system of checks
and balance in the workplace in order to try to achieve higher production levels.

Negative Aspects

★ One of Marxism’s biggest downfalls for many people is its goal to abolish organized religion due to their belief that it was
being used to control people. It is also negative for education because it tries to have anything educational controlled and
implemented by the state, meaning even teachers would not get much control of what they could teach. Finally, it can
also lead to communism.

Nations that have experimented with Marxist Socialism

★ The People’s Republic of China since October 1 1949 have been labeled a Marxist society. This country experiences a
significant amount of protests from their own citizens as well as citizens from neighboring countries due to the country
being anti-imperialism. Marxism is very important to China and this province especially, but many are wondering when
the downfall of it will be and some hope it will be soon.
Utopian Socialism
Important Terms

★ Ethical socialism: socialism on moral grounds

★ Spiritualism: A religious movement based on the belief that the spirits of the dead exist

important Individuals

★ Robert Owen: He had the idea to implement these morals into the work life to improve the working
conditions of employees.
★ Jeremy Bentham: He helped Owen implement a new system of work, but it collapsed a few years
later.
★ Thomas Moore: “the founder of modern utopian socialism” who wrote the novel “Utopia” that
introduced the theory of a perfect society and also talked about freedom, tolerance, communal
living, free education and free health care.
Utopian Socialism
Positive Aspects

★ It is a very equality based society that offers a lot of opportunities for everybody and gives everybody a good chance
at success.

Negative Aspects

★ It is built on trust to ensure the society stays stable which is hard since many people will take advantage of that
opportunity.

Nations that have experimented with Utopian Socialism

★ There has never been any full nations or countries that have experimented with this but in the 1800s there were
settlements established in the United States by Robert Owen following the morals of this economy. One called the
New Commune collapsed due to a major robbery.
Communism
Important Terms

★ Curtail: reduce in extent or quantity; impose a restriction on.

★ Socioeconomic: the social science studying how economic activity affects social processes.

Important Individuals

★ Karl Marx: Communism was his political theory and his beliefs for this society
advocated for class war so all property was just publically owned and people work
based off of their personalized wants and needs.
Communism
Positive Aspects

★ It has a centrally planned economy which is extremely effective and efficient and accomplishes social goals.They
are good to accomplish one particular vision

Negative Aspects

★ It eliminates the free market so planners lose feedback and up to date information on the consumers demands so in
result black markets are created.

Nations that have experimented with Communism

★ China: It was established as communist in the 1940s but they began to move towards a mixed economy in the
1970s. It still follows many guidelines of communism but is more mixed
★ Cuba: in 1960 it began to veer towards communism, and still is besides a few exceptions in morals such as reforms
★ Cambodia was a communist country from 1975-1979 but their economy began to collapse and they began to
become more a mixed economy.
Mixed Economy
Important Terms

★ Private Enterprise: a commercial enterprise owned by private investors

★ Public Enterprise: the government or state has control through significant minority ownership

Important Individuals

★ Adam Smith: He was also the father of mixed economy and popularized the idea of mixing
capitalism and socialism and that it should be managed by socialistic elements as well as free
elements.
Mixed Economy
Positive Aspects

★ It distributes goods and services based on necessity for them. It also gives the producers that were the most efficient
the most profit which helps the customer get the best value for what they are buying and meets their needs

Negative Aspects

★ It can have an array of different advantages depending on its dominating characteristics

Nations that have experimented with Mixed Economy

★ The United States Constitution established this economy that limits government involvement in business operations,
protects ownership of private property and promotes general welfare. It also protects groups that practice their own
customary beliefs and protects their rights.
★ Most of the world’s big economies nowadays are mixed economies mainly due to globalization
Anarchism
Important Terms

★ Hierarchies: an arrangement of items where they are labeled as being above, below, or at the same
level as one another
★ Stateless societies: A society that is not governed by a state and has no government

Important Individuals

★ Emile Armand: He was a French anarchist who also wrote and edited anarchist publications called
L’Ere nouvelle. He was also a polyamorous, propagandist, activist and individualist.
★ Mikhail Bakunin: Bakunin was a Russian revolutionary anarchist and he founded collective
anarchism and social anarchist traditions.
Anarchism
Positive Aspects

★ This type of society eliminates the elements of society that would bond people over negative aspects of life, which in
result has people finding common ground rather than differences. It also respects individualism and prioritizing
oneself.

Negative Aspects

★ It is a semi violent form of government that creates many followers of it which gives it a form of exerting control
overall creating isolation. It also does not function unless there is real-world experience, so it is often romanticized.

Nations that have experimented with Anarchism

★ The Democratic Federation of Northern Syria is an anarchist community in North and East Syria that is autonomous
but not seen like it is by Russia’s government. They have a high crime rate and these towns are pretty disorderly and
non functional.
Liberalism
Important Terms

★ Individual liberty: a state of freedom, especially as opposed to political subjection, imprisonment or

slavery.
★ Welfare state: a government in which the state or well established network of social institutions play
a key role in the protection and promotion of economic and social well being of citizens.

Important Individuals

★ Thomas Paine: in his 1776 book Common Sense he discussed and started a discussion on the
concepts and morals of liberalism and his revolutionary outlooks contributed a fair amount to this
ideology.
★ John Locke: He was referred to as the father of Liberalism and his contributions to the liberal theory
are represented in the United States Declaration of Independence.
Liberalism
Positive Aspects

★ The government is determined by voting and elected by the people, and everybody is equal under the law meaning
everybody has an equal opportunity at success. Human rights are also guaranteed and supported by the constitution
and it is kept that was through independent judiciary.

Negative Aspects

★ The rich have more power over the poor and also freedom of speech and expression also creates an environment
where fascist people can gain power in this society. It is also dependent on norms as the structure for it.

Nations that have experimented with Liberalism

★ Liberalism began to spread after the French Revolution especially to Europe, South America and Victorian Britain. In
some of these countries it was used to critique the current political situation and government in that country. It also
appealed to science and other enlightenment ideals which was appealing to countries.
Conservatism
Important Terms

★ Organic Society: concepts of solidarity developed by Emile Durkheim that goes along with a
mechanical society.
★ Property Rights: Human rights regarding their ownership of possessions.

Important Individuals

★ Burke: He was a member of Parliament in the House of Whigs and he was also credited as being
one of the main theorists of conservatism in Great Britain during this time period.
★ Joseph de Maistre: He developed another form of conservatism in France along with Louis de
Bonald.
Conservatism
Positive Aspects

★ They tend to be very passionate and believe that humans are driven by passion and desire.

Negative Aspects

★ This ideology rejects the idea that humans can be improved as people through political and social change and have
a pessimistic view on ideas. They are prone to selfishness, violence, irrationality and anarchy due to their immense
passion.

Nations that have experimented with Conservatism

★ Chile, Columbia, Venezuela, and many other parts of South America are nations that experimented and have
currently conservative ideology.
Nationalism
Important Terms

★ Sovereignty: the full right and power of governing body over itself without any interference from
outside sources or bodies.
★ Patriotism: A sense or feeling of love, devotion and a sense of attachment to a homeland and
alliance with other citizens who share the same sentiment.

Important Individuals

★ Adolf Hitler: He was an extremely strong white nationalist who was anti semitic and went as far as
killing hundreds of thousands of Jewish people due to his nationalistic beliefs.
★ Other nationalists include Habib Bourguiba (Tunisia) Michel Aflaq (Arab) and King Ghazi (Iraq)
Nationalism
Positive Aspects

★ Nationalism can be seen as people in a particular nation overcoming their differences to focus on that common
pride.

Negative Aspects

★ This can lead to forced assimilation of minority cultures, ethnicities and religions into that nation’s majority beliefs,
which can result in ethnic cleansing and extreme nationalistic movements.

Nations that have experimented with Nationalism

★ Nazis in Germany, Austria and Hungary and other parts of central Europe in the early to mid 1900s was a rise of
extreme nationalism which resulted in terrible mass murder
★ In the 1990s there was a rampage of ethnic cleansing in Bosnia and Herzegovina.