In class, we did an experiment. Each student in the class was given 3 Hershey kisses, in a class of about 25 people. 2 students were given 10 kisses to start the game. These 2 students represented thee rich, while the represented the general population. We were told that we had to play rock, paper, scissors, and the winner of each game would earn a Hershey from another player. As you might have guessed, most of the people ended up sitting down, besides for a few people who luckily built their numbers up. The two students with 10 ended up with the most at the end of the game. Every aspect of this game represent what capitalism is like in real life. The freedom of competition is like that we were able to choose how much we played and who we played with. The workers' revolt was like the "broke" students at the end of the game who wanted back into the game. Then, our teacher took all of the candy and gave each student 3 Hershey kisses. This is just like the government owning the industry, bringing economic equality, and finally aiming for a classless society. At the end of the game, no one wanted to play, in fear of losing out on chocolate. As a result, the teacher would not regulate the amount of candy that we had. This parallels to the goal of classless society being achieved, and the government not being needed. These are the three economic structure that were invented, and used in the 1800's. They are Capitalism, Socialism, and Communism.
Karl Marx created the theories of Socialism and Communism to help the greater good. The bourgeoisie, also known as the rich folk, oftentimes did not have to work for their money. The proletariat, or the lower class, worked hard every day for a fraction of the money. Karl Marx did not like this system of Capitalism, so he came up with socialism. Socialism was the idea that all industry was owned by the government, so that there would be economic equality among all citizens. It also meant that there was a classless society. This was important to Marx because it was fair, and it gave the poor people a happier and more comfortable life. This evolved into communism. Communism has no classes, which is what the goal of socialism was. There was no government needed because everyone had the same things and they were all given equal pay. Adam Smith was another pioneer at this time. He created the theory of the invisible hand. It let commerce be untouched by the government; they set the prices, the items sold, etc. If one man is making 2 dollars selling candles, then another might come along and sell them for $1. The effect of an "invisible hand" touches your back and says "Hey, come to this store, they sell candles cheaper!" Then, the first person would lower their price to $1, and the competition would rise again. This more free way of running a business lead to an economy boost and less unemployment.
There are good sides to every argument, but I think that capitalism works best in a modern society. This is because the harder you work, the more you get paid. The lazy people are thus rewarded with nothing, and the hard workers earn what they make. In a society like the ones in the 1800's, I think socialism is the best because it equals out all people and makes things fair. No one person can start with any more than another, creating a perfect society.
Video Links
The Invisible Hand
Karl Marx Mini Bio
What Motivated Adam Smith??
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