CHAPTER 9
Socialist Protest against Industrial Capitalism
LEARNING OBJECTIVES
Comprehend the evolution of socialist thought.
Compare and contrast the basic elements of socialism and capitalism.
OUTLINE OF CHAPTER
I. Socialism within the Classical Liberal Tradition
II. William Thompson and the Rejection of Classical Liberalism
V. Summary
KEY TERMS
individualistic socialism
philosophy asserting that capitalism exploits workers, but that an effective socialist economy
ANSWERS TO END OF CHAPTER REVIEW QUESTIONS
Comprehend the evolution of socialist thought.
1. Explain how socialists claimed that the existence of private property affected society
2. What are two early divisions of socialist thought?
Individualistic socialism states that capitalism exploits workers, but it asserts that an
3. According to Hodgskin, what is the real source of productivity in capitalism? Explain.
4. According to Thompson, what are the inherent evils created by any competitive market
system? What alternative to capitalism did he suggest?
Capitalism forced every worker to compete with others and encouraged selfishness. The
5. List the major socialist thinkers before Karl Marx, and briefly explain their contributions
to socialist thought.
Gerrard Winstanley argued that those who profits from the ownership of private property
6. According to Owen, if individualism seemed to imply equality why did it not lead to
equality in practice, in other words, why does a hierarchical society persist?
7. Godwin introduced two key ideas that were often repeated and used in the nineteenth
century. Explain why a government in a capitalist society would never address the
problems of capitalism.
Capitalist social and economic institutions were the causes of evils and suffering within
8. List and explain the two main methods for achieving socialism.
Compare and contrast the basic elements of socialism and capitalism.
9. How did the ideals of socialism conflict with the major tenets of classical liberalism?
Classical liberalism taught that the desire to improve the conditions of the poor was
10. Explain how capitalists exploited the working class.
Private ownership of the means of production was the social institution by which one
11. Compare and contrast the major tenets of capitalism and classical liberalism with the
fundamental ideas present in socialism. Which side do you find most appealing?
12. Does Socialism mark the re-emergence of Christian Paternalism? Why or why not?
Socialism was a wedding of the liberal notion of equality to the notion inherent in the
13. Pick three people mentioned in this chapter whose ideas were most appealing to you and
provide a brief summary of their thoughts. In addition, explain why you picked these
particular people/ideas.