Capitalism and Socialism: Crash Course World History #33

Summary

In this Crash Course World History episode, John Green explores the rise of capitalism, focusing on industrial capitalism's impact on production. He discusses the economic and cultural shifts that led to Britain's industrial revolution, including agricultural advancements, the enclosure movement, and the development of capitalist values. Green also touches on socialism's emergence as a response to capitalism's harsh conditions, highlighting the ideas of Marxian socialism and the class struggle. The episode concludes by pondering the ongoing relevance of socialist principles in regulating modern capitalism.

Takeaways

• 😀 Capitalism is an economic and cultural system characterized by innovation and investment to increase wealth.
• 🏛 Mercantile capitalism involved borrowing money to buy goods for resale, with the risk of loss if trade missions failed.
• 🚢 Joint stock companies in the Netherlands and Britain allowed for larger trade missions and spread the risk of international trade.
• 🏭 Industrial capitalism relies on investment in machines and technology to increase production of marketable goods.
• 🇬🇧 Industrial capitalism first developed in Britain in the 19th century due to advantageous conditions like maritime dominance and agricultural productivity.
• 🌾 Agricultural innovations and lower food prices led to more disposable income, encouraging the production and consumption of consumer goods.
• 🔁 The positive feedback loop of increased productivity and consumption contributed to the rise of industrial capitalism.
• 👨‍🌾 The shift from agriculture to industrial work due to increased productivity meant that there were workers available for the emerging factories.
• 🏡 The process of enclosure in Britain led to increased agricultural productivity but also caused poverty and displacement among tenant farmers.
• 📚 Writers and thinkers in Britain helped popularize capitalist values, emphasizing the importance of markets and individual consumer behavior.
• 🤝 The cultural shift towards valuing consumption and individualism was key to the development of industrial capitalism.

Q & A

What is capitalism according to the script?

Capitalism is described as an economic system characterized by innovation and investment to increase wealth, with a focus on production. It is also a cultural system that encourages values of risk-taking and innovation.

What is the difference between mercantile capitalism and industrial capitalism?

Mercantile capitalism involves borrowing money to buy goods for resale at a profit, often with interest. Industrial capitalism, on the other hand, involves investing capital in machines and technology to increase the production of marketable goods.

How did the English Civil War contribute to the growth of capitalism?

The English Civil War led to a half-century of civil unrest, which weakened the British crown's ability to enforce economic regulations like complicated licenses and royal monopolies, thus creating freer markets.

What role did agricultural productivity play in the development of capitalism?

Increased agricultural productivity due to innovations and investments in agricultural technologies allowed for higher crop yields. This led to lower food prices, which in turn increased workers' disposable income and incentivized the production of consumer goods more efficiently.

What is the significance of the enclosure movement in the context of capitalism?

The enclosure movement allowed landlords to privatize fields that were previously held in common, increasing agricultural productivity but also leading to the impoverishment of many tenant farmers who lost their livelihoods.

How did the cultural shift towards valuing consumption impact capitalism?

The cultural shift towards valuing consumption as a positive force spurred economic growth by creating demand for manufactured goods. This change in mindset was crucial for the development of capitalist values.

What is the concept of class struggle as presented by Karl Marx?

Class struggle, according to Marx, is the conflict between the workers and the capitalists, where the former seeks the highest possible wages and the latter seeks the lowest possible labor costs. This struggle is seen as a driving force in the development of class consciousness.

How does Marx's view of capitalism differ from the idea that it is a natural system?

Marx criticizes capitalism for replacing collaborative, egalitarian relationships with conflict, arguing that it is not a natural system but one that goes against human nature, which is inherently social and collaborative.

What are the key principles that socialism aims to introduce as a counter to capitalism?

Socialism aims to introduce principles that check capitalist competition for the sake of collective well-being, such as providing healthcare, pensions, and potentially running certain businesses like mail delivery, airport security, or education.

Why is the development of capitalist values important according to the script?

The development of capitalist values, such as taking risks and appreciating innovation, is important because it encourages individuals to make upfront investments that can lead to increased production and economic growth.

How did the script suggest that industrial capitalism has won out over socialism?

The script suggests that industrial capitalism has won out because it has led to material well-being and access to goods and services for people around the world, which is generally considered a positive outcome.