A Brief History Of The Iron Curtain

Between 1945 and 1989, Berlin served as the dividing line between two opposing factions. To the west were capitalist democracies, led by the United States, and to the east were totalitarian communist dictatorships, dominated by the Soviet Union. The emergence of modern capitalism is still debated today, but it first appeared in Europe during the industrial revolution as countries transitioned towards private ownership of major enterprises. The rise of private enterprise coincided with the Enlightenment, which emphasized individual reasoning and decision-making instead of authoritarian dictates. This philosophy was integrated into the theoretical foundation of capitalism by Scottish economist Adam Smith in his book, “An Inquiry into the Nature and Causes of the Wealth of Nations”. Smith observed that competition and self-interest motivated people to make mutually beneficial arrangements. This fundamental observation marked a turning point in human history allowing more people to enjoy freedom and prosperity.

Marxism, on the other hand, emerged as a critique of capitalism in the 1830s. Alexandre Vinet first used the term socialism to describe various collectivist economic and moral theories that were critical of private enterprise. Karl Marx and Friedrich Engels would later refine this idea in their book, “The Communist Manifesto,” presenting their views on the problems with capitalist

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