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The Economic Dimensions of the Cold War

The Economic Dimensions of the Cold War. Goals: To define Marxism. To compare communism with free-market capitalism. To address some of the historical dilemmas of communism. Karl Marx (1818 – 1883).

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The Economic Dimensions of the Cold War

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  1. The Economic Dimensions of the Cold War Goals: • To define Marxism. • To compare communism with free-market capitalism. • To address some of the historical dilemmas of communism

  2. Karl Marx (1818 – 1883) • Viewed society based upon two dominant classes after the Industrial Revolution of Europe: • The Bourgeoisie (middle class) • The Proletariat (the workers)

  3. Marxist Economics • The history of Europe = history of class struggle between the bourgeoisie and the proletariat. • In industrial society, the bourgeoisie has absolute control over the “means of production” (factories, machines, wages, schedules, jobs) • Because the bourgeoisie produces the wealth of the nation, they also have access to and control of the government.

  4. Marxist views of the proletariat • The proletariat has no control over the means of production. • The proletariat has become “alienated” from their work. • The proletariat has no representation, and, therefore, no protection in government.

  5. Marxist solution? REVOLUTION • Workers must seize the means of production in a violent revolution against the bourgeoisie. • Workers must create a dictatorship of the proletariat where that class controls society. • The bourgeoisie can either join the revolution, or perish.

  6. Laborer works for collective good Organized by state (in the short term) to benefit all Wealth distributed according to need Promotes equality of condition Creates classless society of cooperation and collectivity State eventually disappears Laborer works for individual gain Organized by free market forces (supply and demand) Wealth distributed according to ability Promotes equality of opportunity Creates incentive for individuals to work hard, innovate, and prosper System works naturally without state regulation COMMUNISM//CAPITALISM

  7. Marx’s stages: Mature capitalismbourgeois exploitation Proletarian consciousness raising REVOLUTION! Dictatorship of the ProletariatRedistribution of wealth/consciousness raising/socialism Disappearance of gov’tcommunism

  8. Soviet Union’s Communist State • Created a dictatorship of the communist party rather than a dictatorship of the proletariat. • State owned and operated the means of production in agriculture and industry. • Gave support to other Marxist revolutionary movements in other nations around the world

  9. Historical/Conceptual Dilemmas • Why do we equate communism with TOTALITARIANISM? • What’s the difference between socialism and communism? • Why is communism a potential threat to free market capitalism?

  10. Thinking Questions • 1. Please develop a critique of American claims to democracy from a Soviet perspective. • 2. Please develop a critique of Soviet claims to equality and freedom from and American perspective.

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