Capitalism vs. Communism
Capitalism
- An economic system in which a country's trade and industry is owned and operated by private owners rather than by the government
- Most commonly found in democratic governments.
- Free market economy
Communism
- A government and economic system in which the government has complete control over the country's trade and industry.
- Command economy
Rise of Communism in Russia
- Karl Marx wrote a book promoting communism (1848) which spread the idea throughout Russia
- After serfdom was abolished the people began working in bad conditions for little money, this made them angry and was destroying their economy. After a loss to Japan in 1905 the people were enraged with their leaders and wanted a communist country
- The czars and communist leaders of Russia were very similar. Both had complete dictative power and used it to their advantage.
Gathering Allies
NATO- North Atlantic Treaty Organization. It was formed to stop the spread of communism and promote the spread of democracy.
Warsaw Pact- A pact between communist countries. Formed in the Cold War to promote communism and stop democracy.
Warsaw Pact- A pact between communist countries. Formed in the Cold War to promote communism and stop democracy.
Containing Communism
Korea
- In 1950 North Korea inivaded South Korea.
- The US quickly took a stance with the democratic South.
- The US pushed back the North and kept the South a democratic nation, that resulted in modern day tensions.
Vietnam
- 1954 North and South Vietnam were at war with eachother. The US sided with the South to fight against the communist North.
- The US forces were overpowered by rebel groups and came back to the US in 1973, meaning a loss at war.
Afghanistan
- On Christmas 1979 Russia invaded Afghanistan.
- The US provided weapons and training to Afghanistan for 10 years to fight back against Russia and stop the spread of communism.
The Fall of Communism
Berlin
- In 1989 the Berlin wall was torn down after communism began faltering in other European countries.
- Since the Berlin wall was a symbol of communism in Europe its fall began the fall of communism in all of Europe.
- After communism ended East and West Germany were reunited and began building Germany to what it is today.
Velvet Revolution
- November 1989, a student organizes a demonstration which quickly turns into an anti-government protest.
- In the following weeks more protests with more people force the communist leaders to give up power.
- Today the area is run by democratic governments but some are still calling for reform and more improvements to government.
Czechoslovakia
- In 1989 multiple strikes and protests forced the communist leaders to relenquish power.
- A new transition government was formed with communist opposers being elected as officials.
- In 1990 the first multiparty election was held showing that they are now a full democratic country.
Yugoslavia
- Yugoslavia was a communist state until they were crushed by nazi Germany, splitting them into multiple smaller states.
- After world war 2 the US funneled money into undermining the Yugoslavian government, that resulted in rebellions, civil wars, and ultimately the destruction of Yugoslavia.