What is the Difference between Communism and Capitalism?

The progress of a country or a community basically depends on the way or the method that it is being governed or ran. When we think of communism and capitalism, both are types of socioeconomic theories that are somewhat very different from each other. Many debates have already emerged as to which method or system holds more benefits over the other. So what is the difference between communism and capitalism?

Define Communism

Communism is a type of government that is described in writing by two famous people in the name of Karl Marx and Frederick Engels. This ideology is defined as the control of goods, services or commodities through a certain government that aims only to serve the citizens or the people. This way of governing is to put emphasis on equality. This also means that communism abolishes any private ownership, which basically means that all resources, such as oil, minerals etc., and production like factories and plants are commonly owned by the people. Because of this, no taxes are being implemented except only to a few wealthy people.

Define Capitalism

Capitalism on the other hand is an economic system that deals with private ownership of production which leads to a privately controlled economy. Countries that honor capitalism rely on free market and companies that live by the profit motive. The capitalist society exists in order to make money. This also means that the prices, production as well as the distribution of the goods are based on competition in a free market.

Based on their definitions alone, we can already see that these two theories offer completely different ways of thinking and governing. Capitalism can be described as individualistic wherein communism is more on the belief of placing the society at top of the pyramid. In other words, capitalism and communism may never go hand in hand. Below are some of the most common difference between communism and capitalism.

Difference between Communism and Capitalism

One of the major or well known differences between the two ideologies is through their resources and ways of production. In a communist society, the resources or the production are solely owned by the community or the common people. Capitalism, however, puts more emphasis on the private ownership of the country’s resources and production. This leads to the shared profit of any enterprise by the people in a communist setting while the profit of a capitalist structure is owned entirely by the private sectors only. In other words, these private sectors are the ones that control the resources and production in capitalism while the society is the one considered as the head in production in communism.

A communist economy puts the society above the individuals whereas for capitalists, individuals have the freedom to rise above the state or the society. This means that capitalism is a self regulated economic system while communism holds an economy that is government ran. Individuals in a capitalist structure also hold the power to decide upon the price structure while the society or the government is the one that owns this power on price structure in communism.

We can easily view that communism stands for equal sharing of work in relation to the benefits and ability. However, capitalism shows that every individual is responsible for his or her own business and improving it would mean that hard work must be given individually. In short, communism stands in the abolishment of private properties while capitalism in more on the promotion of individual ownership. This shows as great division between the rich and poor in a capitalist economy, while communism stands for a class less society in removing the line that separates the poor from the wealthy. These are basically the differences between communism and capitalism.

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