Capitalism and Socialism in the UK and US.



What is Capitalism?
uAn economic and political system in which a country's trade and industry are controlled by private
owners for profit, rather than by the state.- Oxford English Dictionary.
u
uMajor, overridng goal of capitalism  is the ‘generation’ of capital, and ultimately profit. This
profit is by and large absorbed by ‘corporations’, who exist independently from the state
u
uAccepts the primary agents in society to be those involved in the generation of capital- i.e.
corporations, who will become the  dominant forces in society.

Capitalism ‘Replaced’ Feudalism
uPrior to capitalism, and the dominance of Capital, the UK and most of Europe had been dominated by
Feudalism. Feudalism was a system where all land owned by King and Nobles: Others were ‘vassals’ on
that land but did not have ownership.
u
uCapitalism ‘overpowered’ feudalism and allowed non-nobles and corporations to attain dominance in
society.
u
uReduced ideas of ‘God-given’ power and the power of ‘Blood’ or Ancestry as providing a right to
rule or dominate society.

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What Has Capitalism Ever Given Us?

Marx’s Critique of Capitalism 1. Capitalism is amoral and leads to increasing inequalty
uAs Capitalism’s core goal is profit, it seems humans as ‘units of production’. The key purpose of
Capitalism is to attain maximum profit at minimum cost.
u
uIn such a system, wealth will inevitably flow towards the top and an increasing degree of what is
produced will be  possessed by a very small percentage at the top, with the minimum possible given
to the wider ‘proletariat’ who produce most.
u
uCapitalism need not ‘start’ so unequal but the ruthless logic of it will inevitably lead to these
injustices and inequalities.

r/LateStageCapitalism - The most important graph: Income vs Productivity The distribution of wealth
in the United States and implications for a net worth tax - Equitable Growth


Your Feminist Shirt Means Nothing if It Was Made in a Sweatshop Factories During Industrial
Revolution - Conditions & Growth


Marx 2: Capitalism ‘Alienates’ People from Labour which harms their ‘Species being’
uPeople’s ‘Species Being’ intends them to be creative and productive and enjoy the fruits of their
labour.
u
uCapitalism ‘alienates’ people from their own work by ‘taking’ that labour from them and giving it
to someone else to profit from.
u
uWorkers are therefore ‘dehumanized’ in the process of their work, unable to lead creating or
fulfilling lives.
u
u

Capitalism Alienates us from….
uOurselves: When we are engaged in monotonous and repetitive forms of ‘wage slavery’ we are no
longer living as ‘humans’ but are alienated from that humanity, with the product of our work
becoming something hostile we have to do instead of something creative we cherish.
uOthers: Competition between people in a capitalist world formed on competition prevents us
generating truly meaningful and uncalculating relationships with other people.
uWe are therefore only truly ‘human’ when we are ‘away’ from work, meaning we spend the vast
majority of our lives, at work, unfulfilled from the perspective of our ‘species’ being’.
uAs everything is purchased with capital which is required to live, we have no choice but to
participate in this dehumanizing system
uIn talking about ‘Species Being’, it appears Marx is referring to mental health and happiness. His
argument is that being forced into monotonous and unfulfilling labour against your will will lead
to an unhappy and unsatisfied society not fulfilling its potential.

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Marx’s Solutions/ Marxian Socialism
uAbolition of Private Property
u
uHeavy Graduated Taxation
u
uMeans of Production and Credit in the Hands of the State
u
uHeavy Redistribution of Wealth.
u
uMarx’s aim was to redistribute wealth to the extent of providing equality between all citizens.

American Capitalism vs Social Democracy
uAmerican Capitalism is premised on the the idea of the ‘American Dream’, that it is the
responsibility and duty of the individual to attain wealth through his or her own talents and the
States obligation to intervene to create this equality is minimal. Characteristics: Low State
Intervention, Weak Welfare State, rejection of ‘redistributionist’ ideas. Fear and Loathing of
‘Socialism’.
u
uEuropean Social Democracy: Premised in a ‘mix’ of socialist and capitalist ideas. Premised on the
idea that the state should provide everybody with the ‘basics’ to live a reasonable standard of
life and to take advantage of the opportunities provided by the capitalist frame.

The Collapse of the American Dream? Is America an Oligarchy?
uModern United States has often been described as an oligarchy because economic elites control huge
elements of the political class and have huge influence over policymakers and policy decisions.
uLed to a huge expansion of wealth for the 1% and increasing economic struggles for many others,
particularly the young.
uDominance of Private companies even in essential area of healthcare preventing a national health
system to being implemented. The Healthcare debate demonstrates just how powerful corporations are
in the US
uMarxian argument that this represents the ‘Inevitable end stage’ of uncontrolled capitalism.

American Socialism
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American Socialism
uAmerican ‘Socialists’ like Bernie and AOC are not ‘Socialists’ in the Marxist sense.
uAmerican Socialists seek to implement ‘European Social Democracy’ in the US: Healthcare, and a
strong ‘Welfare State’. To make the US more like the UK and other European states.
uConservativists have thus far managed to demonise these Social Democrats as radical Marxists or to
say they want to turn the US into Venezuela- while actually they want to turn the US into Sweden(at
worst)!
uAmerican Socialism responding to the same problems that Marx identifies, but seeking to solve
these problems through strengthening the welfare state and community and compassion rather than
through blaming outsiders and nationalism.
u
u

Universal Basic Income: A solution to the Marxian Problem?
uUBI seeks to pay everyone a monthly sum sufficient to provide housing, food, medicine, and basic
amenities.
u
uMost famously propounded by Andrew Yang in his  2020 presidential campaign, in which he proposed
giving every adult American 1000 dollars.
u
uProponents suggest it could resolve the issues Marx raises by changing the power dynamic between
corporations and people.
uIf being didn’t *have* to work to survive, corporations would be forced to provide more fulfilling
work, conditions, and pay, creating a more equal society.
uCapitalism would therefore cease to ‘alienate’ people and corporations would be forced to treat
employees as full human beings rather than units of production
u
u

Discussion Questions.
uTo what Extent should the State be involved in the ‘redistribution of wealth?
u
uIs Marx correct in his assessment of capitalism?
u
u
uIs Universal Basic Income a viable solution to the problems Marx identifies?