A Comparison of Capitalism and Marxism
This essay will compare the economic principles of capitalism and communism by giving brief historical background on both and describing the two. I will begin with the father of economy, Adam Smith, and finish with the theories of Karl Marx.
Adam Smith believed that if everyone behaves selfishly we are doing what is best for the economy of our society. This is what is known as “enlightened selfishness.” “Enlightened selfishness” is one of the main elements of capitalism. Profit is the motive for production of goods and greed is a virtue. You can own private property, but to maintain that private property you need capital to invest. Investing in something is always a risk. The larger the risk, the larger the pay-off. In a capitalistic society, the government does what is known as laissez-faire. This means that the government does not interfere with the market. This is known as the “hidden hand.” The desired result of laissez-faire and “enlightened selfishness” is competition. Ideally, this competition will bring out the best product for the buyers, and those who produce the best will be rewarded.
Before explaining the theories of communism it is necessary to understand the factory system of the time, otherwise known as industrialization. In the mid 1800’s, the cottage industry was switching over to the factory industry. The invention of the steam engine benefited the cities closest to water. Many new industries were emerging, but there were many negative effects of industrialization such as the exploitation of the worker. This was accomplished by the regimentation of the working class in the massive factories of the times. The factory system increased production but the workers we...
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... proletariat must become the government and abolish the power of the bourgeoisie. During the transition period between capitalism and communism it would be necessary to have a brief period of time where the state would be ruled by the dictatorship of the proletariat. After the revolution, the power of the newly communist country would be greatly taxed and vulnerable to attack of neighborhood countries fearing the “infection” of communism. Only through a temporary dictatorship could the nation be protected from the onslaught of other nations and from the class enemies (counter-revolutionaries, reactionaries, and propagandists seeking to undo communism).
The several distinct differences between communism and capitalism are made apparent by studying the principal theories behind the two.
Bibliography:
The Communist Manifesto (1848)
Das Kapital (1866)
The weapons that the bourgeoisie used to overcome feudalism are now going to turn against them and be their undoing. At some point there is too much of everything (civilization, industry), begins to endanger the society the bourgeoisie has created. As the bourgeoisies capital grows and develops so does the development of the working class, or proletariats. As the clashes between the different classes the bourgeoisie, Marx says, will appeal for help from the proletariat thus advancing their general education as well as political filling their weapon arsenals against the ruling class of society.
...veryone including the bourgeoisie, that the communist government would fall just the same as capitalism does, he logically shows how any government will fail without the support of everyone. The goal of the communist movement was made very clear by Marx, stating, "...formation of the proletariat into a class, the overthrow of the bourgeois supremacy, and the conquest of political power by the proletariat." (467) Here he shows that he wants the proletariat to come out on top and invokes a strong sentiment in the working class appealing to both ethos and pathos. He appeals to both of these by showing the proletarians that they can trust the communist movement, it may take some time, but it certainly the working class' best interests at heart. The last statement also invokes a sense of hope and happiness about what the future possibly has in store for the proletariat.
Adam Smith justified the ethics of capitalism by stating that it did not benefit the common man. He felt that if the government interfered, there would be proper distribution of wealth and it would result to more efficient business.
Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.
The end of 19th century, Western Society was changing physically, philosophically, economically, and politically. It was an influential and critical time in that the Industrial Revolution created a new class. Many contemporary observers realized the dramatic changes in society. Among these were Karl Marx and Friedrich Engels who observed the conditions of the working man, or the proletariat, and saw a change in how goods and wealth were distributed. In their Communist Manifesto, they described their observations of the inequalities between the emerging wealthy middle class and the proletariat as well as the condition of the proletariat. They argued that the proletariat was at the mercy of the new emerging middle class, or bourgeoisie, and could only be rescued by Communism: a new economic form.
This paper aims to provides a full understanding of the free market system and how it can potentially benefit individual’s needs. The free market system is fully explained and classical economist’s views are considered separately as well as in contrast with one another. The specific economists discussed include Ricardo, Marx, and Mill. Their individual opinions on how the free market system could impact the economy is examined and the effects of an economic system controlled by the government is also discussed.
Much of Karl Marx’s Communist Manifesto discusses the relationship between how a capitalist society produces its’ goods and how this affects the social structure of the society. Throughout the manifesto, Marx used the term mode of production to refer to how a given society structures its’ economic production, it also refers to how a society produces and with what capital the society produces. Human capital plays a large part in Marx’s communist manifesto, concerning himself with the relations of production, which refers to the relationship between those who own the means of production (bourgeoisie) and those who do not own the fruit of their labor (proletariat). This is where Marx believes that one can find the causes of conflict, asserting history evolves through the mode of production. The constant evolution of the mode of production toward a realization of its’ full potential productivity capacity, creates dissensions between the classes of people, which in capitalism, are defined by the modes of production (owners and workers). Marx believes that one such dissension is that since Capitalism is a mode of production based on private ownership of the means of production, and entities within a capitalistic economy produce property to be exchanged to stay competitive, these entities are forced to drive the wage level for its’ labor as low as possible so as to stay competitive. In turn, the proletariat must create means with which they can keep the interests of the bourgeoisie in check, trying to avoid being exploited to the point of extirpation. Marx holds that this example shows the inherent conflicting nature of the social infrastructure of production, which will in turn give rise to a class struggle culminating in the overthrow ...
The word “communism” is generally linked with “Marxism”. Since Marx along with Friedrich Engels published the cutting-edge thesis, The Communist Manifesto in the middle of the 19th century, it conceived the new dimension for both politics and economics. Before turning to the principles of the Manifesto, it is useful to present the brief historical background of the era, and understand why it affected the ideology. Predominantly the Industrial Revolution (IR) and the Great Revolution in France (FR) transformed the society as follows; creation of conditions for capitalism by destroying feudalism. Period between 1820 -1840 marks the beginning of the IR, which altered the whole meantime s...
Whether one thinks that the ideas of communism are good or bad, by taking a look a today’s society, we can certainly see the affect The Communist Manifesto and other books of its kind have had. Karl Marx’s ideas have shaped many programs and organizations to attempt following along the lines of equality.
The Communist Manifesto was published in 1848, a period of political turmoil in Europe. Its meaning in today’s capitalistic world is a very controversial issue. Some people, such as the American government, consider socialism taboo and thus disregard the manifesto. They believe that capitalism, and the world itself, has changed greatly from the one Marx was describing in the Manifesto and, therefore, that Marx’s ideas cannot be used to comprehend today’s economy. Others find that the Manifesto highlights issues that are still problematic today. Marx’s predicative notions in the Communist Manifesto are the key to understanding modern day capitalism.
The political philosopher believed that communism could only thrive in a society distressed by “the political and economic circumstances created by a fully developed capitalism”. With industry and capitalism growing, a working class develops and begins to be exploited. According to Marx, the exploiting class essentially is at fault for their demise, and the exploited class eventually comes to power through the failure of capitalism.... ... middle of paper ...
Poverty is everywhere and no matter how hard our government tries to eliminate it, it simply cannot. To do so it must first reformat itself so that it may do its job in a more efficient manor, thus helping all aspects of life. Converting our current system into a capitalistic government would in fact help alleviate the current situation.
Karl Marx, in the Capital, developed his critique of capitalism by analyzing its characteristics and its development throughout history. The critique contains Marx’s most developed economic analysis and philosophical insight. Although it was written in 1850s, its values still serve an important purpose in the globalized world and maintains extremely relevant in the twenty-first century.
There is a long-running debate about whether communism or capitalism is preferable and shows more of beneficial aspects. Capitalism is defined as an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations. While communism is a system of social organization in which all economic and social activity is controlled by the state. The principle of capitalism is if one is successful and hardworking will keep improve and progress in life. While the principle of communism is to keep all the people the same, a lot of people may say that this is a good thing but when talking about real life this would add laziness and demotivation because hardworking people would gain the same credit as lazy people. Capitalism and communism are the two main economic systems that are used by governments nowadays. Obviously capitalism is a much better economic system to be used by a state; practical uses and statistical facts qualify capitalism as much more successful. Also, capitalism is more beneficial to the state, common citizens, and business owners. It would be very useful to test the two systems according to practical uses of the two systems on states and monitor which states succeeded and which states failed.
In western capitalist societies, communism is portrayed as a system that practices wealth distribution where everyone makes the same amount of money and own the same exact things with no competition. In reality Marx’s idea of communism gives people the chance to develop their skills and advance their potential to the fullest extent, that is actually denied under the capitalist class system. Marx agrees with rousseau that political and civil rights are important and gives the people more power but he takes it further and argues that in order for people to be truly free they must have control on their labor and their production by democratizing the economic and labor system.