collective ownership of economic factors of
state management of equally distributed
Utopia was Imagined by philosophers
during the 19th
Century. Political equality required wealth equality.
Production was a common good.
using a democratic process, controls the state which determines
economic strategy and allocates land, labor and profit.
This is accomplished by controlling
property and investment capital. Production will be for
the common good and not for state officials.
Early Application was based on the Socialism of Marx and Lenin.
advances over time into Communism.
This 1875 slogan
from each according to his ability, to each according to his
made Communism popular.
Their goal was a
classless social system
of production under
and with full social equality of all members.
the economy, spreads
internationally, and leads the
The Communism of Marxism–Leninism was then
the official ideology of
introduces a highly centralized command
by the state. Under Stalin,
Communism never developed although the state,
like early capitalists, got almost all surplus production.
Soviet Union's political philosophy.
developed after WW
in war torn Western Europe. The key
public ownership of key
transportation and communication
industries. It also has
showed increased concerns
and spent additional resources to help the disadvantaged.
Neoliberal economics was used by England's
Margaret Thatcher in 1979 to dismantled
England's brand of Socialism.
She was followed, in much of Europe. In 1981,
President Ronald Reagan followed her policies to
reverser the social and regulatory concessions
being won, often over the object of the Supreme
The expensive socialist programs of SS
Medicare/Medicate and tax-expenditures
were not only not touched- they
19th Century Capitalism
was managed by owners wanting the highest capital return.
They neglected the low return of social
goods. Democratic Socialist believe this limited
individual ownership of economic factors of
free competitive markets
of resulting production.
Classical Early Capitalism centered
on Individual profit accumulation
Equality of wages was
not a consideration because
wealth was needed to power the process.
Owners selling in a competitive market, determine investments
strategy. Profits control
property and investment capital.
Production will be for owners and not for government.
Early Application was the Capitalism
His observations of the
Industrial Revolution as of 1776
were summarized In
The Wealth of Nations.
The goal of high
profits was met by many and
so large that
soon dwarfed that of the European aristocracy.
Reinvested of profit just magnified system
Unlike socialism, capitalist did not contemplate
the virtue of wealth
or the effects of industrialization on
the human condition.
Not an ideology, intellectuals did not defend it until
the 20th century
when Hayek and Friedman, among others, did so. Smith
believed Individual decisions, driven by self-interest,
created wealth. Moral development, he argued in “The Theory of Moral
Sentiments,” resulted from appropriate management,
Mixed Economy developed in the United States
late 19th century. Being a Republic, the people decided the economic
the distribution of wealth.
Phase 1 had the people slowly took
more control value created by demanding health,
safety and wage concession from Gilded Age capitalists.
Phase 2 was a response to the Great
a public/private partnership to help the unemployed-farmers,
began the regulation of banking-finance, and
created a safety net system led by social security.
Phase 3 had LBJ adding to Medicare
Neoliberal economists led the fight to remove many
the mixed economy regulations designed
middle class suffering and they also cut back on
programs. These attempts failed and the
Great Recession may begin a new phase.