Capitalism vs. Communism Throughout history, there have been many systems developed in order to have a better society. Two of the most analyzed, and debated systems that have tired to change an economy for the best are communism, and capitalism. Communism, and capitalism have been compared on many levels, such as why they will or will not work, and which one works better. Throughout this essay I will concentrate on the differences, and similarities of how each operates, along with the benefits, and problems that each of them produces. Both of these economic systems theories came about around the same time, in the late 17th to mid18th centuries. One of the main contributor for capitalism was Adam Smith, writing The Wealth of a Nation in 1776, and Karl Marx for communism publishing the Communist Manifesto in 1848. These both were looked as a manual or guide for achieving such advancements. Communism called for the people to not be selfish and work for the benefits of the community rather for their well being. It asks them to see that what benefits the whole, benefits themselves. Capitalism on the other hand is focused on working for individual growth, and personal ownership to provide wealth for one’s self. Communism plans to have a higher power or government control the economy to create a better way of living, by which all goods are equally distributed. As capitalism wants the government to not play a big role i...
Though the rewards are pleasing to the ear, the path to obtaining the benefits of communism is a violent one. This strict governing idea was derived from Communist Manifesto, a book written by two German economists, Karl Marx and Fredrich Engels, who declare that many problems in society are caused by the unequal distribution of wealth. These two believe that “Communism deprives no man of the ability to appropriate the fruits of his labour. The only thing it deprives him of is the ability to enslave others by means of such appropriations.” To achieve the goal of happiness and prosperity for all, the lines that distinguish the differences between the rich and poor must be erased. Obviously, the rich will never voluntarily give up their goods or status; therefore the figureheads must force equality among the citizens. Communism places their citizens, whether they be the wealthy or the laborers, into working classes that specify their contribution to the government. With such balanced placement of the people, individuality is impossible for any single person to achieve.
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.
Capitalism, by definition is known as “a way of organizing an economy so hat the things that are used to make and transport products are owned by individual people and companies rather than by the government”(Marxism). To some, this is the correct way of handling the economic situation in one’s country. But to others, such as Karl Marx and Adam Smith, there are other systems that would be more adequate. Is capitalism really the best way to go? What are the other options that could be better than capitalism? We must see which would be the best for society. If one were to negatively affect it, then it is not an option that should be taken. So, we must see the pros and cons for capitalism and how it can affect the economy and our society.
Communism is an economic system where, in theory, ownership of everything (e.g. goods, industrial products, businesses, farm produce, etc.) is collectively by the Government and the payment of income is only based one’s need. In communism, individuals have little say or on say at all on what to produce, not even owning anything since ownership is only by the Government. Communism is a socio-economic structure based on classless, stateless society where the means of production are on common ownership. Therefore, communism is the idea of free society where there is no divisions, humanity is not oppressed, no need for Government or countries. A citizen earns according to their needs and gives according to their abilities to do so.
To begin with, capitalism is a type economic system. Simply put, capitalism is the system where workers work for the capitalist and receive wages for their labor. In, Wage-Labour and Capital, Marx explains the exchange between the capitalist and their workers in regards to wages and labor. He wrote:
Common misperceptions have convinced Americans over the years that communism is corrupt form of government. In reality, the leaders of so called communist countries are corrupt. Communism is an economic system derived by Karl Marx, which in theory is composed of publicly owned property and wealth spread equally among the population. According to Merino in his preface to What Are Some Concerns About Capitalism?, “Communism’s defining feature is the public, or communal, ownership of capital” in which “the means of production owned and utilized by all for the common good” where there is no difference in the wealth between the people. Communism and capitalism have opposite values, while communism is beneficial for society as a whole, capitalism
-Communism and Capitalism are considered to be the opposite of each other. Communism is when there is total government power over society which means that the government is allowed to use its powers to
Businesses would differ extremely due to the fact that communism and capitalism are very different forms of government. These five essential parts (Product creation, Marketing, Sales, Finance, and Delivery of your Product) are the key factors in business and these two markets cause these factors to differentiate between the two types of markets. These two environments caused businesses to re evaluate their ways of marketing and getting consumers to get the products. Capitalism is the most fluent system of marketing, but communism has some valid ways of marketing as well.
The essential nature of capitalism is social harmony through the pursuit of self interest. Under capitalism, the individuals pursuit of his own economic self interest simultaneously benefits the economic self interest of all others. In allowing each individual to act unhampered by government regulations, capitalism causes inventions, prosperity and ideas to be created in the most efficient manner possible which ultimately raises the standard of living, increasing opportunities and makes available an ever growing supply of products for everyone.
It is clear that capitalism is more advantageous than communism in every aspect in the economy. All stakeholders such as common people, state, government, banks, and investors will benefit more in a capitalist economy. The best way to describe a communist economy is as an old lady who is demotivated in her life and just wants to eat and sleep, while a capitalist economy can be described as a motivated young man who wants to keep achieving more and more in his life.
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.
There is a great advantage of living in a nation where there is a low
The article gives an overview of communism itself and its background throughout history. The article states that communism is a higher form of socialism and the ideas Karl Marx laid down to create a classless society through the use of communism. The article has excerpts about how Marx identified two phases of communism and how communism would eventually overthrow capitalism. The article reviews his two phases one of which describes how the working class would control society and the government; the other being Marx’s idea of, “From each according to his ability, to each according to his needs.”
One of the first and major differences between a Communist and Democratic government is their contrary economic systems. In a communist government, the community owns the major resources and means of production. The goal of such a system is to prevent any one person or group of people from becoming radically rich, while others are extremely poor. The system attempts to eliminate lower class by balancing the wealth between rich and poor, therefore giving everyone equal pay and ownership. Unfortunately, this results in an increased lower class. However, in a Democracy, free enterprising is permitted, and smiled upon. ? Here, free enterprising helps the economy to flourish. People can organize their own businesses and receive their own profits if it succeeds, or debts if it fails. In this system, the harder a person works, the more money they receive, allowing them to ‘make ends meet.’ The downside to democracy is that people can get a high paying job through education, but may work just as hard at a lower paying job and receive less money. As Winston Churchill once said, "The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." Generally, Democracy’s seem be more successful economically.
What is it about communism that makes many people scurry and cringe? In America, the mere word might as well be banned from the dictionary. The only time it is used is when talking about new aggressive movements by totalitarian communist countries. American’s tolerance level for communism is zero to none. Is communism so horrific that the thought of some forms being successful is out of the question? In society today, capitalism is the leading economic system. When compared to other systems, few meet its standards of living. Capitalists take this fact and hold it at the heart. They become close-minded to all other forms of government—especially communism.