1. INTERNATIONAL ISLAMIC UNIVERSITY ISLAM ABAD
FACULTY OF SOCIAL SCIENCES
(Department Of Sociology)
Assignment
SOCIOLOGICAL THEORY
TOPICS
ï Differences between Capitalism Socialism and Communism
ï Infrastructure and Superstructure according to Karl Marx
ï Class consciousness and false consciousness
Submitted To
Dr.Babar
Submitted By
Aziz Ullah
M.Sc. Sociology 2nd Semester
REG. NO:- 452-FSS/MSCSOC/S14
2. What is Capitalism?
Capitalism is an economic system in which trade industry, and the means of production are largely or entirely
privately owned and operated for profit. Central characteristics of capital are including accumulation,
competitive and wage labor. In a capitalist economy, the parties to a transaction typically determine the prices at
which assets, goods, and services are exchanged.
The degree of competition, role of intervention and regulation, and scope of state ownership varies across different
models of capitalism. Economists, political economists, and historians have taken different perspectives in their
analysis of capitalism and recognized various forms of it in practice. These include laissez-faire capitalism, welfare
capitalism, crony capitalism and state capitalism; each highlighting varying degrees of dependency on markets,
public ownership, and inclusion of social policies. The extent to which different markets are free, as well as the rules
defining private property, is a matter of politics and policy. Many states have what are termed capitalist mixed
economies, referring to a mix between planned and market -driven elements. Capitalism has existed under many
forms of government, in many different times, places, and cultures. Following the demise of feudalism, capitalism
became the dominant economic system in the Western world.
What is Socialism?
Socialism is a social and economic system characterized by ownership of the means of production and co-operative
management of the economy, as well as a political theory and movement that aims at the establishment of
such a system. "Social ownership" may refer to cooperative enterprises, common ownership, state ownership,
citizen ownership of equity, or any combination of these. There are many varieties of socialism and there is no
single definition encapsulating all of them. They differ in the type of social ownership they advocate, the de gree to
which they rely on markets or planning, how management is to be organized within productive institutions, and the
role of the state in constructing socialism
A socialist economic system is based on the organizational precept of production for use, meaning the production of
goods and services to directly satisfy economic demand and human needs where objects are valued based on their
use-value or utility, as opposed to being structured upon the accumulation of capital and production for profit.
What is Communism?
Communism is a socioeconomic system structured upon common ownership of the means of production and
characterized by the absence of social classes, money, and the state; as well as a social, political and economic
ideology and movement that aims to establish this social order. The movement to develop commun ism, in
its MarxistâLeninist interpretations, significantly influenced the history of the 20th century, which saw intense rivalry
between the states which claimed to follow this ideology and their enemies. Communism is most associated with
Marxism, which considers itself the embodiment of scientific socialism. According to Marxism, capitalism is a
historically necessary stage of society, which has led to the concentration of social classes into two major groups:
proletariat - who must work to survive, and who make up a majority of society - and bourgeoisie - a minority who
derive profit from employing the proletariat, through private ownership of the means of producti on.
3. Differences between Capitalism Socialism and Communism
Capitalism Socialism Communism
Ideas
Opposed to government
intervention in economics
because capitalists believe it
introduces inefficiencies. A free
market produces the best
economic outcome for society.
Govt. should not pick winners
and losers.
All individuals should have access
to basic articles of consumption
and public goods to allow for self-actualization.
Large-scale
industries are collective efforts and
thus the returns from these
industries must benefit society as a
whole.
All people are the same and therefore classes
make no sense. The government should own all
means of production and land and also
everything else. People should work for the
government and the collective output should be
redistributed equally.
Religion
Permitted/Freedom of Religion Freedom of religion, but usually
promotes secularism.
Abolished - all religious and metaphysics is
rejected.
Economic System
Market-based economy
combined with private or
corporate ownership of the
means of production. Goods and
services are produced to make a
profit, and this profit is reinvested
into the economy to fuel
economic growth.
The means of production are
owned by public enterprises or
cooperatives, and individuals are
compensated based on the
principle of individual contribution.
Production may variously be
coordinated through either
economic planning or markets.
The means of production are held in common,
negating the concept of ownership in capital
goods. Production is organized to provide for
human needs directly without any use for
money. Communism is predicated upon a
condition of material abundance.
Philosophy
Capital (or the "means of
production") is owned, operated,
and traded for the purpose of
generating profits for private
owners or shareholders.
Emphasis on individual profit
rather than on workers or society
as a whole.
From each according to his ability,
to each according to his
contribution. Emphasis on profit
being distributed among the
society or workforce to
complement individual
wages/salaries.
From each according to his ability, to each
according to his needs. Free-access to the
articles of consumption is made possible by
advances in technology that allow for super-abundance.
4. Key Proponents
Adam Smith, David Ricardo,
Milton Friedman, Fredrich
Hayek, Ayn Rand, Murray
Rothbard
Robert Owen, Pierre Leroux, Karl
Marx, Fredrick Engels, John Stuart
Mill, Albert Einstein, George
Bernard Shaw, Thorstein Veblen,
Emma Goldman.
Karl Marx, Fredrich Engels, Vladimir Lenin,
Leon Trotsky.
Political System
Can coexist with a variety of
political systems, including
dictatorship, democratic republic,
anarchism, and direct
democracy.
Can coexist with different political
systems. Most socialists advocate
participatory democracy, some
(Social Democrats) advocate
parliamentary democracy, and
Marxist-Leninists advocate
"Democratic centralism".
Usually takes the form of totalitarianism as Marx
described in The Communist Manifesto.
Cronyism common.
Economic coordination
Relies principally on markets to
determine investment,
production and distribution
decisions. Markets may be free-markets,
regulated-markets, or
may be combined with a degree
of state-directed economic
planning or planning within
private companies.
Planned-Socialism relies principally
on planning to determine
investment and production
decisions. Planning may be
centralized or decentralized.
Market-socialism relies on markets
for allocating capital to different
socially-owned enterprises.
Economic planning coordinates all decisions
regarding investment, production and resource
allocation. Planning is done in terms of physical
units instead of money.
Political
movements
Classical liberalism, Social
liberalism, Libertarianism, Neo-liberalism,
Modern Social-
Democracy, Anarcho-Capitalism
Democratic Socialism,
Communism, Libertarian Socialism,
Anarchism, Syndicalism.
Leninism, Trotskyism, Marxism-Leninism,
Maoism, Left-Communism, Stalinism.
Private Property
Private property in capital goods
is the dominant form of property.
Public property and state
property play a secondary role,
and there might also be a limited
number of collective property in
the economy.
Two kinds of property, personal
property, such as houses, clothing,
etc. owned by the individual. Public
property includes factories, and
means of production owned by the
state but with worker control.
Abolished. The concept of property is negated
and replaced with the concept of commons and
ownership with "usership".
5. Social Structure
Classes exist based on their
relationship to the means of
production: the ruling class, or
"capitalists", own shares of the
means of production and derive
their income in that way. In
contrast, the working class is
dependent on wages or salaries.
Class distinctions are diminished. All class distinctions are eliminated.
Key elements
The accumulation of capital
drives economic activity - the
need to continuously produce
profits and reinvest this profit into
the economy. "Production for
profit": useful goods and services
are a byproduct of pursuing
profit.
Economic activity and production
especially are adjusted to meet
human needs and economic
demands. "Production for use":
useful goods and services are
produced specifically for their
usefulness.
Centralized government, planned economy,
dictatorship of the "proletariat", common
ownership of the tools of production, no private
property. equality between genders and all
people, international focus. anti-democratic.
One party system.
Definition
A theory or system of social
organization based on the free
market and privatization in which
ownership is ascribed to the
individual persons.
A theory or system of social
organization based on the holding
of most property in common, with
actual ownership ascribed to the
workers.
International theory or system of social
organization based on the holding of all
property in common, with actual ownership
ascribed to the community or state. Rejection of
free markets and extreme distrust of Capitalism
in any form.
Way of Change
Fast change within the system.
In theory, the relationship
between buyer and seller (the
market) is what fuels what is
produced. Government can
change rules of
conduct/business practices
through regulation or ease of
regulations.
Workers in a Socialist-state are the
agent of change rather than any
market or desire on the part of
consumers. Change by the
workers can be swift or slow,
depending on change in ideology
or even whim.
Government in a Communist-state is the agent
of change rather than any market or desire on
the part of consumers. Change by government
can be swift or slow, depending on change in
ideology or even whim.
Discrimination
Government does not
discriminate based on race,
color, or other arbitrary
classification.
The people are considered equal,
laws are made when necessary to
protect people from discrimination.
In theory, all members of the state are
considered equal.
6. Ownership structure
The means of production are
privately-owned and operated for
a private profit. This drives
incentives for producers to
engage in economic activity.
The means of production are
socially-owned with the surplus
value produced accruing to either
all of society (in Public-ownership
models) or to all the employee-members
of the enterprise (in
Cooperative-ownership models).
The means of production are commonly-owned,
meaning no entity or individual owns productive
property. Importance is ascribed to "usership"
over "ownership".
Free Choice
All individuals make decisions for
themselves. People will make
the best decisions because they
must live with the consequences
of their actions.
All choices, including education,
religion, employment and marriage,
are up to the individual. All health
care and education is provided
through a socialized system funded
by taxation. Citizens have free and
equal access.
Either the collective "vote" or the state's rulers
make economic and political decisions for
everyone else.
Examples
The modern world economy
operates largely according to the
principles of capitalism. The UK,
US, and Hong Kong are mostly
capitalist. Singapore is an
example of state capitalism.
Union of Soviet Socialist Republics
(USSR): Although the actual
categorization of the USSR's
economic system is in dispute, it is
often considered to be a form of
centrally-planned socialism.
Ideally, there is no leader; the people govern
directly. This has never been actually practiced,
and has just used a one-party system.
Examples 0f Communist states are the
erstwhile Soviet Union, Cuba and North Korea.
7. Infrastructure and Superstructure according to Karl Marx
Karl Marxâ saying was that when it comes to opinions, culture, and ideas, as well as laws and institutions,
the âinfrastructureâ determines the âsuperstructureâ. Your position in the economy (production relations)
and society (class) determines what you think and all the related output â from art to law. Economy-society
is the Infrastructure and culture-ideas-institutions are the Superstructure.
Recent polls in Western Europe suggest that opinions related to globalization and the market economy
vary widely across countries. It is striking to notice how the countries that have better adapted their
economies and societies to globalization are also the countries where positive attitudes to globalization
prevail, or attitudes towards globalization are the least negative. This mainly the Nordics (I know my
Swedish colleagues here at ECIPE will slightly disagree, but they are not Italians), and the Anglo-Saxons.
Where support wanes most is where economic stagnation prevails Italy is the worst case.
A distinction is made between a superstructure and an infrastructure, and the theory means that
developments in the super-structure are to be explained at least in general line by reference to the
infrastructure: in any given historical society the superstructure is a reflection of the degree of
development of, and of the tensions within, the infrastructure. Infrastructure means the basic systems and
structures that a country or an organization needs in order to work properly. Example Roads, Banks,
Railways, Good Education and Healthcare etc., Superstructure means a Political or Social system that
has developed from a simpler system. Example the whole Superstructure of Capitalism. Mode of
Production means a particular way or style of behaving, living or doing something in a process of making
or growing things to be sold especially in large quantities. All the above three are very much essential to
generate incomes of the people and the Economic Development of a Country largely depends on its
Infrastructure and Political superstructure and Mode of Production. With high regards to the Great Karl
Marx , I have tried to clarify you about these terms but I am also not aware as to how these things related
in The Great Marx's thoughts on Economic Development.
8. Class consciousness and false consciousness
Karl Marx defined âclass consciousness as a social condition in which members of a social class, and
in particular the working class, are actively aware of themselves as a class. False consciousness is a
lack of such awareness, resulting in a distorted perception of the reality of class and its
consequences.â
The Consciousness of a Class
Marx is one of the most important of all Socialist thinkers. One of his greatest sociological insights
centered on the thought that social class was the deciding principle of social life. Much of his work
focused on the plight of the working class, and he felt it imperative that the class structure of society be
changed. In Marx's view, the relationship between people was determined primarily through who
controlled the mode of economic production, such as land or factories. The land, resources and factories
were controlled and owned by the wealthy citizens; thus, the working class had little choice but to work
according to the terms dictated by the upper, controlling class. For this reason, Marx detested the concept
and practice of capitalism; he felt that it only allowed the rich to become richer and the poor to become
poorer.
Class Consciousness - A Col lective Whole
Marx saw the exploitation of the working class as a catalyst for change. He felt that the capitalistic system
of the time could and should be destroyed, and Marx called for a revolution by the working-class
members. However, before the revolution could occur, Marx felt that the working class first needed to
develop what is known as class consciousness. This is a subjective awareness of common vested
interests and the need for collective political action to bring about social change. Simply put, the workers
needed to see themselves as one unit and, together, could revolt and change their working conditions.
False Consciousness
There was one stumbling block to Marx's hope of a working-class revolution, and that was the fact that the
working class did not see themselves as one unit, but individually, in terms of 'I' and 'me.' This is known as
false consciousness. A false consciousness is an attitude held by members of a class that does not
accurately reflect their objective position. Basically, workers would see themselves as 'I,' as in 'I am being
exploited by my boss,' rather than 'we:' 'We are being exploited by our boss.' Marx's revolution to end
9. capitalism and bring down the wealthy controlling class would not come to light as long as the working
class was viewing life through a false consciousness.