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.


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.