Communist Manifesto By Karl Marx: A Comparative Analysis

“Man is an animal that makes bargains: no other animal does this - no dog exchanges bones with another.” ~ Adam Smith. Humans are the only living organisms that trade to obtain another resources. Two basic types of way we consume trade are through market economy and planned economy such as Capitalism and Communism. In the book called the The Wealth of Nations, by Adam Smith, he explain the capitalistic ideology and in the book called Communist Manifesto by Karl Marx he shares his philosophy of communism. Capitalism and communism are on the opposite ends of the economic spectrum because both have different principles, affect the people differently, and have contrastingly result on the ethos.

Capitalism and communism have different principles. What does

that mean? Doesn’t all economy have the same fundamentals? How does capitalism and Communism have different principles? Basically yes all economy systems have common keys fundamentals that they share. For example profit, money, trade, consumer, suppliers. Capitalism and communism are different because a capitalistic market is an market economy and communism is a planned economy. Market economy is when buyers and sellers meet in markets to determine the price and quantity in of goods and service bought and sold. The action of buyers and seller determine the price of a product or service. There are different Market economy are basically Lassiez- faire type of economy. For example, the United States during the Industrial Revolution before teddy Roosevelt Square Deals policy, the Government did not have no real control on economy, which allowed business men, entrepreneurs, and robber barons all ran wild with expansion of profit and business. Capitalism is a market economy because it allow people take the risk to open a company by getting people to invest in their company to result in income/profit and competition for a successful market. The government in capitalism is involved when needed unlike a communism, where the government is has control and plan the economy like a totalitarian dictator governor and brainwash people. Planned economy are the opposite of a market economy, it’s when the government allocates resources through central planning. In other word it where the government determine the market actions. For example, China is a communism country where the government start up and run the businesses, redistributing the wealth between all people. As a result of communism can lead to corruption, poverty, and failure of efficiency.
Capitalism and Communism affect the people differently.

This is significant because people are the foundation on an economic system, for example consumers are the buyers or the products or services and suppliers supply the consumer with the products or services. In capitalism the people set the business, which is having entrepreneurial abilities. The entrepreneurs then supply the consumer with jobs, products, and services. As a result the wealth is unequally distribute meaning the lowest person in the business change pay wage vary than the highest person. Where as in communism the wealth is equally distribute due to the fact that the people do not own their own business instead all of the people own the factories. In other words the government own the businesses and supply the consumer with the jobs, products, and service. As a result of both Capitalism and communism, there are have negative and positive effects on the people such as losing efficiency leading to failure of capitalism and corruption or scarcity leading to unsuccessful growth of communism.

Lastly, Capitalism and Communism have contrastingly result on the ethos. This is significant because the ethos today of some countries may or may not be how the

way
For example in American we still follow Adam Smith’s natural laws of economics, such as the law of self- interest, the law of completion, and the law of supply and demand. Capitalism show that companies should be private, that money should be invest to equal a profit, the population increase faster than the food, people will always be poor and if there that workers and resource have a direct proportion. As a result, most government under capitalism can blossom. In the mid/ late1900’s communism economy caused explosive result worldwide leading to the rise up of Russia’s Lenin, China’s Mao Zedong, Cuba’s Fidel Castro, and many more.
In conclusion, Capitalism and communism are on the opposite ends of the economic spectrum because both have different principles, affect the people differently, and have contrastingly result on the ethos.