SOCIAL STUDIES 30

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SOCIAL STUDIES 30

• CHAPTER 8 CENTRALLY PLANNED SYSTEMS

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CENTRALLY PLANNED ECONOMY

• AN ECONOMIC SYSTEM IN WHICH THE CENTRAL
  GOVERNMENT MAKES ALL THE MAJOR ECONOMIC DECISIONS
  FOR THE COUNTRY
• AKA PUBLIC ENTERPRISE B/C RELIANCE ON PUBLIC
  OWNERSHIP OF PRODUCTION GOVT DECISION MAKING

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HISTORY OF PLANNED ECONOMIES

• 4000 YRS AGO- SUMERIAN SOCIETY IN MIDDLE EAST WAS
  STATE-CONTROLLED
• ANCIENT EGYPT AGRICULTURE NATURAL RESOURCES
  CONTROLLED BY PRIESTHOOD UNDER DIRECTION FROM
  PHAROAHS
• CHINA HAS HAD 3 PERIODS OF RULERS WITH CONTROL
  OVER ECONOMY
• INCAS OF PERU

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DIGGERS

• FIRST MODERN POLITICAL MOVEMENT THAT FAVORED
  COMMON OWNERSHIP OF PROPERTY
• AN ENGLISH GROUP IN THE MID-17TH CENTURY

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INDUSTRIAL REVOLUTION

• INCOME INEQUALITITES
• DEPLORABLE WORKING CONDITIONS
• POOR LIVING CONDITIONS
• 12 HR WORK DAYS / 6 DAYS A WEEK
• CHILD LABOR
• CRIME FOURISHED
• DRUNKENNESS PROSTITUTION INCREASED
• ALL LEAD TO MORE GOVT CONTROL COMMUNISM

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LIFE IN RUSSIAN FACTORY

• FINES FOR
• LATE ARRIVAL
• WORK BELOW STANDARD
• LAUGHTER
• SICKNESS
• SITTING DOWN
• ARTICLED DROPPED
• FAIL TO STAND AT ATTENTION
• WK 10-12 HOURS
• WK 16-18 HOURS ON SATURDAY

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UTOPIAN SOCIALISTS

• GROUP OF SOCIALISTS WHO ADVOCATED PEACEFUL
  DEMOCRATIC METHODS TO ACHIEVE MORE IDEAL
  SOCIETIES, BASED ON COOPERATION, PLANNING, AND
  COMMUNAL APPROACHES

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LOUIS BLANC

• HE CREATED IDEA OF LARGE-SCALE PUBLIC OWNERSHIP
• LABOURERS CONTROL OVER WORKPLACE
• DISTRIBUTION OF GOODS ACCORDING TO INDIVIDUAL
  NEED
• GOVERNMENT-INITIATED SOCIALISM

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CHARLES FOURIER

• BELIEVED POVERTY WOULD END IF WORKERS GIVEN A
  CHANCE TO WORK TOGETHER IN OWN BEST INTERESTS
• EST. SMALL MODEL COMMUNITIES OF 500-2,000 PEOPLE
  CALLED PHALANSTERIES
• PEOPLE DO JOBS WHICH THEY BEST SUITED WOULD
  SHARE PROFITS

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ROBERT OWEN

• REDUCED THE WORKDAY FOR HIS COTTON MILL LABOURERS
  FROM 12 TO 10.5 HOURS
• IMPROVED HOUSING
• IMPROVED WORKING CONDITIONS
• REFUSED TO HIRE CHILDREN UNDER 10
• PROVIDED EDUCATION FOR THE YOUNG

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BEATRICE WEBB

• MARRIED SIDNEY WEBB
• ESTABLISHED FABIAN SOCIETY WITH GEORGE BERNARD
  SHAW
• ELITIST SOCIALIST GROUP FORMED IN 1884 THAT WAS
  DETERMINED TO REFORM SOCIETY VIA PEACEFUL MEANS
• SOCIALISTS HELPED FOUND LONDON SCHOOL OF
  ECONOMICS
• PROMOTED STATE-SPONSORED EDUCATION SOCIAL
  SECURITY

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KARL MARX

• WROTE COMMUNIST MANIFESTO WITH FRIEDRICH ENGELS
  IN 1848
• WROTE DAS KAPITAL
• MARXISM IS BOTH A POLITICAL ECONOMIC THEORY
• MOVED BY INHUMANE CONDITIONS CREATED BY
  INDUSTRIAL REVOLUTION

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KARL MARX CONT

• COMMUNIST MANIFESTO ADVOCATED A COMPLETE
  OVERTHROW OF GOVERNMENT
• ALL ASPECTS OF A PERSONS LIFE WAS DETERMINED BY
  INDIVIDUALS RELATIONSHIP TO THE MEANS OF
  PRODUCTION
• HISTORY OF CLASS CONFLICT BETWEEN OWNERS OF MEANS
  OF PRODUCTION WORKERS
• CONFLICT BETWEEN EXPLOITERS AND EXPLOITED
• CONFLICT BETWEEN RULING OPPRESSED CLASSES

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HISTORY OF CLASSES

• RELATIONSHIP TO MEANS OF PRODUCTION
• IN NOMADIC SOCIETY THOSE WHO OWNED THE MOST
  HORSES WERE CHIEFS
• IN AGRICULTURAL SOCIETY THOSE WHO OWNED LAND
  WERE RULING CLASS
• IN ANCIENT GREECE MASTERS AND SLAVES
• IN ANCIENT ROME PATRICIANS PLEBEIANS
• IN INDUSTRIAL SOCIETY THOSE WHO OWN FACTORIES
  WERE RULING CLASS

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CLASS CONFLICT

• BOURGEOISIE VS. PROLETARIAT
• WORKERS SELL THEIR LABOUR TO THOSE WHO OWN
  MEANS OF PRODUCTION
• PROLETARIAT CREATE GOODS WHICH VALUE WAS GREATER
  THAN THE WAGES THEY RECEIVED FOR LABOUR
• MARX CONDEMNED PROFIT MOTIVE PRIVATE PROPERTY
  SOURCE OF CLASS CONFLICT

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NEGATIVES OF CAPITALISM

• EXPLOITED DEGRADED WORKERS
• WHEN WORKERS HAVE TO SELL THEIR LABOUR LIKE AN
  OBJECT
• CREATION OF THEIR LABOUR IS TAKEN AT UNFAIR PRICE
  THEY ARE ALIENATED FROM THEMSELVES, FROM
  OTHERS, FROM THEIR WORK
• CAPITALISM PREVENTS HUMANITY FROM EVER FULFILLING
  ITS POTENTIAL
• PROLETARIAT GET POORER, BOURGEOISE RICHER LEAD
  TO REVOLUTION BY PROLETARIAT

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MARX REVOLUTION

• REVOLUTION LED BY PROLETARIAT
• BOURGEOISIE CONTROLLED POLICE, GOVT, LAW COURTS,
  MEDIA VIOLENCE THE ONLY WAY
• CREATE A CLASSLESS SOCIETY
• POST-REVOLUTION PERIOD VAGUE
• MANY (NOT FEW) WOULD CONTROL GOVT

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IDEAL MARXIST SOCIETY

• CENTRALLY PLANNED ECONOMY
• INCRESED ECONOMIC PRODUCTION
• DISTRIBUTION OF INCOME ACCORDING TO WORK
  PERFORMED
• INCREASING ECONOMIC EQUALITY
• DISAPPEARANCE OF CLASSES
• INCREASING DESIRE TO WORK FOR GOOD OF SOCIETY NOT
  PERSONAL PROFIT
• FROM EACH ACCORDING TO HIS ABILITIES, TO EACH
  ACCORDING TO HIS WORK.

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MARXIST-LENINIST

• UNLIKE MARX, LENIN BELIEVED STONG LEADERSHIP WAS
  NECESSARY FOR A REVOLUTION
• MARX SAID INTELLECTUALS WERE TO GUIDE WORKING
  CLASS, LENIN SAID COMMUNIST PARTY SHOULD TAKE
  LEAD IN CULTIVATING CLASS CONSCIOUSNESS
• UNLIKE MARX WITH ALL-INCLUSIVE WORKERS PARTY,
  LENIN FORMED SMALL, TIGHTLY KNIT PARTY OF
  REVOLUTIONARIES

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SMITH VS. MARX

• WEALTH OF NATIONS
• PRIVATE PROPERTY
• NO GOVT INTERVENTION
• SUPPLY AND DEMAND
• INDIVIDUAL PROFITS PRODUCTION
• HUMAN NATURE SELFISH
• INCOME BASED ON OWNERSHIP OF RESOURCES
• CLASSES - YES

• DAS KAPITAL / COMMUNIST MANIFESTO
• PUBLIC OWNERSHIP
• GOVT PLANNING
• SOCIETY MAKES DECISIONS
• SHARE PROFITS PRODUCTION
• HUMAN NATURE UNSELFISH
• INCOME BASED ON WORK OR NEED
• CLASSES - NO

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ADVANTAGES OF CENTRAL PLANNING

• PLANNING ENCOURAGES HIGH RATES OF ECONOMIC GROWTH
• PLANNING HELPS TO REDUCE WASTAGE OF RESOURCES
• THE DISTRIBUTION OF INCOME IS MORE EQUAL
• ESSENTIAL GOODS ARE PRODUCED BEFORE LESS
  ESSENTIAL GOODS
• PLANNED ECONOMIES DO NOT SUFFER FROM UNEMPLOYMENT
  INFLATION RELATED BUSINESS CYCLES

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DISADVANTAGES OF CENTRAL PLANNING

• PLANNED ECONOMIES ARE BUREAUCRATIC INFLEXIBLE
• LITTLE INCENTIVE FOR EFFICIENT MANAGEMENT
• SYSTEM STIFLES INDIVIDUAL EFFORT
• RESTRICTED FREEDOM OF CHOICE
• QUALITY, QUANTITY, VARIETY OF GOODS ARE LIMITED

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CUBAN ECONOMY

• CASTRO TOOK WEALTHY LANDOWNERS PROPERTY
  DIVIDED AMONG FARMERS
• PRICE CONTROLS ON FOOD, HOUSING, FUEL
• GUARANTEED EMPLOYMENT
• RAISED MINIMUM WAGE
• TOOK CONTROL OF ARMY, BANNED OTHER PARTIES
  FRIENDS WITH USSR

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CUBAN ECONOMY CONT

• NATIONALIZED ALL FOREIGN COMPANIES IN 1961
• ANGERED U.S. BAY OF PIGS INVASION
• EMBARGO ON CUBA BY U.S. NOW
• BY 1968 ALL PRIVATE OWNERSHIP GONE
• CREATE EQUAL SOCIETY WORK FOR SOCIETY NOT
  PERSONAL GAIN
• TO BREAK CLASS DISTINCTIONS PROFESSIONALS
  URBAN WORKERS VOLUNTEER AS FARM LABOR
• FOCUSED ON FULL EMPLOYMENT, EDUCATION HEALTH
  CARE

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CASTRO PRIVATE ENTERPRISE

• USED PROFIT INCENTIVES TO ENCOURAGE GREATER
  PRODUCTIVITY
• MANUFACTURED MORE CONSUMER GOODS FRIDGES, TV
• SOME PRIVATE PLOTS OF LAND SELL IN MARKET
• MORE WOMENS RIGHTS TO GO HIT WORK FORCE
• FREE DAY CARE
• MEN SHARE HOUSEWORK WITH WIFE ( A LAW)
• MATERNITY LEAVE
• MOVED BACK TO COMMAND IN LATER 1980s
• CRADLE TO GRAVE PROTECTION

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BEFORE AFTER

• BEFORE 1959
• LIFE EXPECTANCY 59
• PUPIL / TEACHER 361
• 1 DOCTOR / 1000
• 1 HOSPITAL BED / 237
• 32 INFANT DEATHS/ 1000
• AFTER 1959
• LIFE EXPECTANCY 76
• PUPIL / TEACHER 121
• 1 DOCTOR / 300
• I HOSPITAL BED / 136
• 10 INFANT DEATHS / 1000

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ECONOMIC PROBLEMS

• COLLAPSE OF COMMUNISM HURT CUBA
• OVER 80 TRADE WITH COMMUNIST BLOC
• ECONOMY SHRINK BY 50 IMPORTS FELL 25 WITHIN 4
  YRS
• CLINTON CLAMP DOWN ON CASTRO EVEN MORE IN 1990s
• RESULT FOOD SHORTAGES, LITTLE FUEL, SOAP, GAS,
  MEDICINE
• LINE UP AVERAGE 15HRS / WEEK

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ECONOMIC PRESSURE CHANGE

• DENATIONALIZED SOME INDUSTRIES
• ENCOURAGED FOREIGN INVESTMENT
• CAPITAL YES, CAPITALISM NO
• LEGAL TO HAVE FOREIGN CURRENCY
• SELF-EMPLOYMENT
• FARMERS SELL PRODUCE
• GOVT FIRMS TO LAYOFF WORKERS
• FOREIGN MONEY ENTER VIA BUSINESSES TOURISM

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U.S. PRESSURE CONT

• HELMS-BURTON LIBERTAD LAW NO MEMBERS OF
  COMPANIES THAT USED OR INVESTED IN CUBA