Philosophies of Capitalism and Socialism

karl marx: a philosopher who criticized capitalism, and created communism. also believed history is about class struggles

between the rich (bourgeoisie) and the working class. liberal: believes in individual freedom,

equal rights and limited government. wants progress and change in society (more freedom,

and equality). Utopian Socialists: Early socialists who wanted a perfect, fair society without

poverty or exploitation. Believed people should cooperate instead of compete. Examples: Robert

Owen The Wealth of Nations: A book by Adam Smith (1776) Laid out ideas of capitalism

and free enterprise. Believed the economy works best when people persue their own self-interest.

Also believed the "invisible hand" will guide the market. Robert Owen: A Utopian Socialist and Factory