By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Live Trading NewsLive Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
Reading: Capitalism Vs Communism
Share
Live Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Follow US
© 2024 LiveTradingNews.com - All Rights Reserved.
Live Trading News > Blog > Shayne Heffernan on Investments > Education > Capitalism Vs Communism
Business

Capitalism Vs Communism

Paul Ebeling
Last updated: July 15, 2022 1:23 am
Paul Ebeling
Share
7 Min Read
951ce542 abfd 41c9 a842 1fb1aa570e3a
SHARE

#Capitalism #Communism #Socialism #Marx #Engles #Smith

“The Political and Economic Theories of Capitalism and Socialism with emphasis on Adam Smith and Karl Marx”–Paul Ebeling

Adam Smith, the renowned Scottish Economist, wrote a book, The Wealth of Nations in which he sparked the idea of Capitalism.

Karl Marx, a Philosopher, and Sociologist, from Germany, initiated the idea of Communism, in his book The Communist Manifesto, as a response to Capitalism.

Marx felt that in order for the proletariat to rise up and take control of the government, it would have to unite and form its own class to overthrow the government.

Centralized property and government and the absence of classes became the basis of communism.

And Socialism practices flexible forms of state control Vs capitalism that advocates a free economy and free-market without state intervention.

The term ‘capitalism’ implies an economic system that advocates private ownership of the means of production, distribution, and exchange, to earn profit. In this system, the determination of production and price of the goods and services are done by the market, i.e. the demand and supply forces play a significant role here.

The Key features of capitalism are individual rights, private property, accumulation of wealth, market economy, free and competitive market, self-interest, minimal government intervention. In a capitalist economy, it is the owners who decide and invest, in the financial and capital market on the production inputs. The competition in the economy decided the price and distribution of merchandise in the economy.

Communism is a form of socialism, in which the means of production, resources, and property are owned and controlled by the egalitarian society, i.e. by the community equally is called Communism. It is based on the idea of shared ownership.

The theory of communism was mainly sparked by the German philosophers cum sociologist Karl Marx and Friedrich Engels. The central principle behind communism is, the contribution and share of each would be based on his ability and needs.

In this political system, the government owns everything and all the individual works for a common goal. Therefore, class distinction does not exist, as all are considered equal. Communism aims at removing the gap between the wealthy and poor and establishing equality in the economy.

The following points are noteworthy so far as the difference between capitalism and communism is concerned:

  1. An economic system in which the trade and industry of the economy are owned and controlled by private individuals to generate profit is called Capitalism. A social system in which a country’s trade and industry are controlled by the community and the share of each individual relies on his ability and needs, is called communism.
  2. Capitalism is based on the Principle of Individual Rights, whereas Communism is based on the Principle of Community Rights.
  3. Capitalism is in favor of class distinction, i.e. working class and capitalist class, hence the degree of class distinction between rich and poor is very high. On the contrary, communism opposes a division of society according to class, as it promotes a classless society, so, there is no gap between rich and poor.
  4. There is a democratic system of government in capitalism. As against this, a totalitarian government system exists in socialism. Totalitarianism is a form of government in which government owns and controls almost everything.
  5. Under capitalism, the government does not have much involvement. In contrast to communism, there is a high level of government intervention.
  6. In capitalism, every individual has to work for himself to create wealth. As opposed to this, in communism wealth is distributed as per needs and ability.
  7. The production inputs like land, labor, and capital are privately owned by the individuals and enterprises, while the means of production are held by the state, in the case of communism.
  8. In communism, more preference is given to society rather than an individual which is not in the case of capitalism, i.e. freedom of the individual is vital.
  9. In capitalism, fierce competition exists between the firms whereas in communism, as the market is controlled by the state, the competition is quite low.
  10. In communism, the profit earned by the enterprise is distributed among all the people of the economy. On the contrary, the profit of the enterprise, in capitalism, is enjoyed by the owner only.
  11. While capitalism can be found in western countries, socialism is more popular in eastern countries of the world.

Both communism and capitalism are a form of social organization, that is associated with trade and industry in the economy and discusses the ownership of property.

As every coin has 2 sides, a heads and tails, so as with the case of communism and capitalism.

In capitalism, the distribution of wealth is uneven, due to which the rich get richer while the poor become poorer.

In communism, there is an equal distribution of wealth, but it does not allow individuals to have private property.

Communism attempts to eliminate capitalism in the economy, as it was introduced, as a response to injustices of capitalism.

But, in practice, communist regimes have taken the form of coercive, authoritarian governments that cared little for the plight of the working class and sought above all else to preserve their own hold on power.

As the Industrial Revolution advanced, socialist critics blamed capitalism for creating a new class of poor, urban factory workers who labored under harsh conditions, and for widening the gulf between rich and poor.

Bottom line

Capitalism generally works better, or much better, than Communism. Human greed and familial bonds consistently turn out to be mightier motivators for most …

Have a prosperous weekend, Keep the Faith!

You Might Also Like

Hotels as Art Galleries in Asia

125 Public Companies Now Hold Bitcoin

Ferrari Hypersail

Banking Apocalypse, Bitcoin’s Just the Beginning

St. Francis: The Deeds You Do Today

TAGGED:capitalismcommunismEnglesMarxSmithSocialissocialism

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

Subscribe our newsletter for latest news around the world. Let's stay updated!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
By Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   
Previous Article Leadership Characteristics of Entrepreneurship Entrepreneurs have Passion and Some!
Next Article IMPROVING BITCOIN PRIVACY WITH SILENT PAYMENTS 1140x641 1 Privacy To Lead Next Crypto Breakout
Buy Bitcoin

Buy Bitcoin

Latest News

photo 2024 03 05 13 24 46
Bitcoin at ATH, What Next?
Bitcoin Crypto Headline News Opinion Shayne Heffernan Shayne Heffernan Shayne Heffernan on Investments USD July 14, 2025
Screenshot 26 6 2025 132527
Tokenization and the Future of Financial Markets
Bitcoin Blockchain DeFI Digital Assets Economy Headline News KXCO Politics USD July 11, 2025
photo 2025 03 03 07 22 06
InfoFi: The Latest Abomination in Crypto
Crypto Featured Headline News Shayne Heffernan on Investments July 10, 2025
czi0oawj8y561
Asia’s Growth Resilience Amid U.S. Tariffs
America Asia Asia Business Featured Headline News KXCO Politics USD July 10, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
4.4kFollowersFollow
//

Stay informed with LiveTradingNews.com – your ultimate destination for timely and insightful updates on global markets, finance, and investment trends. Explore the latest news and analysis to empower your trading decisions.

Quick Link

  • About us
  • Advertise
  • Send us a tip!
  • Privacy Policy
  • Contact us

Top Categories

  • Knightsbridge Insights
  • Featured
  • Stocks
  • Shayne Heffernan
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Subscribe our newsletter for latest news around the world. Let's stay updated!

Live Trading NewsLive Trading News
Follow US
© 2025 LiveTradingNews - For The Traders, By The Traders – All Right Reserved By Knightsbridge Group
Welcome Back!

Sign in to your account

Register Lost your password?