Communism vs. Socialism vs. Capitalism

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Difference between Communism, Socialism and Capitalism

The economy is important in every country in order for a country to survive and thrive. There are different economic systems throughout the world and the most notable of them include communism, socialism and capitalism. Through the years, some people thought that these systems had become extinct or somehow replaced by the global stock market forces. But to tell you frankly, presently, they are still working for some countries and some of these countries practice a mix or a combination of these economic systems. Most people think that each of these systems is very different, but in fact, they are not. Let’s look at certain differences and similarities between these three systems.

Communism
Capitalism

History

The economy of communism was said to have originated in the north, specifically in the Soviet Union. In Western Europe, the economy of socialism emerged. Finally, during the 1800’s, America evolved into the economy of capitalism. Notable architects of communism-the Illuminati, socialism-the Fabian Society and Round Table, and capitalism - was institutionalized by Benjamin Franklin, Thomas Jefferson, Thomas Paine and Francis Bacon. Their religions were humanism for both communism and socialism while capitalism has no particular religion. With regards to the economics of these systems, communism practices state ownership. Socialism is a hybrid between private and state ownership while capitalism is based on free market, wherein all properties are privately owned.

Evolution

Based on Karl Marx’s theory, capitalism is a state where the system of the economy comprises a few individuals who own an enormous amount of resources, land and money. All the economy is centered on these big players in the economy and all they do is to become wealthy. Socialism comes flanked by capitalism and the communism economies due to the fact that everyone has their equal share of power and resources. Finally, communism is the final cycle of the egalitarian society. This works by giving the government power over all the resources and they will be responsible distributing them in proportion to the needs of the people.

Terminologies

Capitalism is based on the economic system which suggests “survival of the fittest” because the more money you have, the more powerful and wealthier you become. This system feeds the rich and unfortunately buries the poor. Socialism on the other hand, is based on the economic system that says “you can have your share no matter how much you contribute.” This economy is sort of unfair for the people who work hard and for those who do not still get a fair share of the “cake”. Finally, communism is based on the economic system which states “what you sow is what you reap”. This means you are only entitled to share only up to the amount that you put in.

Summary

  • Capitalism practices ”Laissez Faire” wherein the players of the game are the rich ones. Those who are not rich are not represented fairly.
  • Socialism is quite an unfair economic system because even the unproductive gets a fair share depending on their needs.
  • Communism works as a better system only for the healthy and productive members of society because you do not get a share more than you put in, leaving the rest of society to suffer.

Which political force controls most of the world?
  • Communism
  • Socialism
  • Capitalism
 
 

Discuss It: comments 4

  • Guest
  • James wrote on March 2016

those results are well in the favor of the United States but can you tell me why so many American are pushing for a socialist agenda especially the young.

PS. I am not subscribing to anything. Due you think it is a lack of real understanding and lack of history.

  • Guest
  • julian mccoy wrote on March 2017

You are confusing Capitalism with Crony Capitalism. True Capitalism rewards those who serve the best, punish those if the customer so chooses, if serves is poor. The reason why so many people pick Capitalism is because it is the most natural system of Universal order.

  • Guest
  • Phil Wells wrote on September 2017

This statement confuses the intent of Darwin's "survival of the fitest": "Capitalism is based on the economic system which suggests “survival of the fittest” because the more money you have, the more powerful and wealthier you become."

Survival of the fittest, when it comes to Darwinism, means that the organism with the most ideal traits will eventually run out the others. The less fit organisms will compete with the winner unsuccessfully for food, against disease, and for physical supremacy. Eventually the most fit organism procreates most efficiently and the others disappear.

When it comes to an economic system, this means that the businesses that are the most likely to survive are the most "fit" (ideal) for society's marketplace at the time. If 3 companies make widgets and one company's widgets are too expensive, one's widgets are of poor quality, and one's widgets are at the best price with, arguably, the best quality, this latter company is the fittest to survive. Humans are most likely to support that company by buying its widgets because they want to conserve capital for other things and they want the best product so they dont have to replace it so often (e.g.). It DOES NOT have to do with how much money you have, as submitted above. You might be the smallest company making widgets, with the least operating capital and yet you might run leaner, be less greedy, and have a better product and thus you will win the market.

Fortunately, there is usually room for multiple "winners" in the jungle of the marketplace (if the marketplace is big enough) and people have choices as to which widgets to buy. Some will prefer the better made ones for more money. Others will prefer the cheaper ones, though more "cheaply" made. But, as long as there is a market for both ways of providing widgets, both can be successful and, ultimately, either force the others to shape up (called market pressures) or force them to ship out if they are insufficiently nimble to compete.

  • Guest
  • Phil Wells wrote on September 2017

No country today operates as PURELY any of these 3 systems. Communist China allows limited (?) ownership of business and the profits (Jack Ma of Alibaba). The USA is capitalist yet offers government run social programs like the CCC (from the Great Depression era) & Medicaid, and government owned and maintained (rather than privately managed) highways, ATC, etc. European-style Socialism provides government based social services like health-care, yet allows private ownership of businesses (albeit heavily taxed to SUPPORT these services).

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