Capitalism and communism

Last class : French, American and Haitan revolutions. Different revolution happening
in the end of the 18th century, connected by the enlightment ( ideas of freedom,
equality, social contract, political arrangement of the society ).
Today : capitalism and communism, history of capitalism, what changes in the 18 th
century, communism, socialism in the 19th century
I-

Capitalism
Cpitalism is :
- Economic system
- Ideology
As an economic system :
-

Private ownership of capital, in ancient society most land were owned

by the ruler so it
Division of capital and labour not only that an individual owns the
capital but also that the labour is not owning the capital. Based in
wagely, get paid to do particular work in a particular business in which
you have no share of the capital or profit
Benefits of doing business goes to the owner of capital

It existed before the 19th century, premodern capitalism, merchant

capitalism, key element is the transportation. In area were trade
dominated like the middle east, Mediterranean,..
Expansion of capitalism :
-

Growing population (factors of industrialization) ie 1500-European 81

million, 1800-180million, fewer people dying, columbiuan exchange
Leads to : increasing of urbanization, looking for better economic
opportunities. More economic development, industries and trade would
also change, more people to buy, more people to sell
Market became freer In a sense. Unregulated market. An individual
success made be based on market.
It affects the way industries are structures, especially in terms of
labour. Biggest cost was the wage of labour. Cheap labour coveted.
Pre modern industrialization are made by skills artisan, they will over
time develop guilts ( similar to union), organize the trade. Guilts are
gonna become very powerful. What allow them to grow Is tatt
production was centralized in area.VS Merchands would try to find a
way to decentralize ( PUTTING OUT SYSTEM ), sending to the country
side, decentralize.
Another factor was the maritime expansion, find trade routesm trade
central to their business. Also increases the risk,( pirates attack,
maritime danger )
Respons to that is JOintN STOCK COMPAMNIES

 In state were merchants had influence, idea of sharing the risk.

Shares of the company. Similar to corporation today. First joint stock
companies where merchands had influence, ie east india. Able to
negotiate monopolies, over certain area of the world ie Dutch had
monopolies in the spie trade in malaysia .

Consequences :
Overseas exploration broad any changes, but capitalism as well developed many
changes. People in country side were able to mke more money, better quality of
life. Eastern Europe able to make profit, becauses westen Europe put leess focus in
agriculture even tjough population is growing importing agriculturlal from eastern
Europe
INTERCONNECTEDNESS between different areas.
Change in ethics, more communal based shif crom the community to the
individuals.
Adam smith justifies by saying that capitalism made society more productable

II-

Socialism

In many ways, socialism with feminism and nationalism can be seen as a

consequence of revolutions. As well as the industrial revolution. The individual
means of production?capitak.
Socialism : not by the individual but by the community, corporative form of
economy and production
Reaction to exeses of industrialization ( ie condition in early industries )
Ideas of enlightment
One of the founder is a capitalist who tried to apply the two ;
Robert Owen 1771
-

Created industrial communitiies

Son of small businessmen
Textile factory, conton mill in Scotland.
Became an owner of a society

He changed the working hours, reduced to 10h/day, built better housing for
workers, paid decent wages, changed practice ie no old idea of obligating
employee to buy in the store. Paid only w money, different, different approach. He
also supported education for the childrens. 8hrs.

On the one hand the company was profitable because the conditions were good. He
had bigger ideas, iiedalistic community ( nw harmony ) in Indiana it didnt work but it
would generate dvlpmt in the us sych as public education system for boys and girl,
scientific institution, ..
Some people call this utopian. Ie Karl Max
-

Gemrn but spent many times in England

Argue that industrial capitalism was inherently unstable and would
collapse
Class conflict
Mix of political and industrial revolution
He also tried to applied science to society scientific socialism
Historical approach : revolution is a certainty
Stages :
o Primitive capitalism
o Slave society
o Feudalism
o Capitalism
o Socialism
o Communism