5.9 - Crash Course World History Video #33: Capitalism and Socialism

Jan 16, 2025

Crash Course World History: Capitalism

Introduction

  • Host: John Green
  • Topic: Capitalism
  • Challenges in discussing capitalism:
    • Balancing different perspectives
    • Limited time to discuss complex ideas

Capitalism Overview

  • Definition: An economic and cultural system characterized by innovation and investment to increase wealth.
  • Focus: Production and impact of industrial capitalism.

Mercantile Capitalism

  • Era: Around 1200 CE
  • Involves borrowing money to buy and resell goods for profit.
  • Global phenomenon:
    • Chinese, Indian Ocean Trade Network
    • Muslim merchants sponsoring trade caravans
  • 17th Century: Expansion to joint stock companies in Netherlands and Britain.
    • Spread risk of international trade
    • Increased wealth but limited cultural impact

Industrial Capitalism

  • Definition: Relies on investment in machines and technology to increase production of goods.
  • Developed in Britain in the 19th century due to:
    • Dominance on seas
    • Profits from trade and slave trade
    • Civil unrest leading to freer markets
    • Increase in agricultural productivity
  • Positive feedback loop:
    • Lower food prices led to more disposable income
    • Encouraged production of consumer goods

Social and Cultural Changes

  • Enclosure movement increased agricultural productivity but impoverished tenant farmers.
  • Shift in cultural values to support capitalism:
    • Emphasized rational actors and market-controlled economies
    • Popularized idea of individuals as consumers and producers

Criticisms and Responses

  • Problems:
    • Poor working conditions, child labor
    • Workers lived in poverty
  • Responses:
    • Formation of labor unions
    • Theoretical response: Socialism, especially Marxian socialism

Socialism

  • Originated in France
  • Two branches:
    • Utopian Socialism: Rejected revolutionary action
    • Revolutionary Socialism: Advocated for overthrowing capitalism through revolution
  • Karl Marx
    • Father of communism
    • Focused on class struggle
    • Believed capitalism replaced egalitarian collaboration with conflict

Capitalism and Socialism Today

  • Industrial capitalism appears dominant, but socialism principles still influence regulation of free markets.
  • Ongoing debates:
    • Role of government in providing services like healthcare and education
    • Balance between capitalist competition and collective well-being

Conclusion

  • The struggle between capitalist and socialist principles continues.
  • Crash Course production credits.
  • Encouragement to continue learning and engaging with historical topics.