Why Is Capitalism Better Than Communism

Throughout time, different economic systems have become powerful. From the ancient barter systems to the current intricate systems in place, each has its own strengths and weaknesses. A form such as seen in Russia in the early 1900s is an extreme form of socialism, specifically a command or communistic economy. Russia currently has a market based economy in which some, but not all economists consider a capitalism. Capitalism and Communism are both effective economies, but capitalism in modern society is a more effective way to produce and distribute goods. Communism is a command economy in which all economic and political power rests on the government. With this system there are numerous benefits, explained by Harry Schwartz as being free medical care, secured jobs, and social insurance for those in need. Centrally planned economies push for a common good by sharing everything. But,

Unlike communism, where competition and private property are disfavored, as expressed by Friedrich Engels, capitalism is progressed by competition and the ability of individuals to ascertain private property. In a capitalistic society there are drawbacks such as unemployment and monopolization, but there are many benefits that create a better general environment than that of communism. Capitalism is driven by consumer sovereignty, and in this way the demands of the consumer are efficiently met and they even lead to what is to be produced. Capitalism also gives economic freedom. Workers choose to work at the places the choose to work at, individuals get to buy what they want, and firms get to produce what they want. Adam Smith in The Wealth of a Nation expresses indirectly that the better economic system between communism and capitalism is capitalism, as he writes that the uninvolvement by the government in the economy “advocates for the liberation of economic production from all limiting regulation in order to benefit the