Distinguishing Capitalism & Communism

Capitalism vs Communism

Capitalism and communism are two highly debated political, social, and economic ideologies that have been compared and contrasted for decades. Capitalism emphasizes private ownership and individualism, while communism focuses on public ownership and collective gains for society. The two systems are fundamentally different and were often seen as opposing forces, especially during the time when communism was practiced in the Soviet Union and other Eastern Bloc countries.

Key Takeaways

  • Capitalism encourages private ownership, individualism, and entrepreneurship, while communism emphasizes public ownership and collective gains for society.
  • Capitalism often results in wealth being concentrated in the hands of a few, while communism aims for a classless society with equal distribution of resources.
  • Capitalism allows for more individual freedom and a market-driven economy, whereas communism tends to have less personal freedom and a government-regulated economy.

What is Communism?

Communism is a political system where land and other resources are under the control of the state, representing the people. In communism, everything is shared and equal wages are given to everyone. This means that individual enterprise is discouraged, as the goal is to create a country where everyone is equal and there is no disparity between the rich and the poor. The level of personal freedom is lower in communism, as the society is always prioritized above individuals. The government regulates the economy, and prices of commodities are set with the financial interests of the people in mind. In this system, people cannot move up in social standing, as everyone is treated equally.

What is Capitalism?

Capitalism is a political system where private ownership of resources is accepted and encouraged. In capitalism, individual entrepreneurship determines a person’s earnings, and most profit from a business goes to the person owning the means of production. This results in wealth being concentrated in the hands of a few people, known as capitalists. People in capitalist societies have more freedom, and the economy is driven by individual enterprise, although some rules and regulations are set by the state. Prices of commodities are determined by market forces. Incentives in the form of private property and profits motivate people to work harder, allowing them to earn based on their work and merit. Class divisions are created in capitalism, forming a backbone of the system.

What is the difference between Capitalism and Communism?

• Definitions of Capitalism and Communism:
• Communism is a political system where the government controls the whole society, including the economy.
• Capitalism is a political system with minimal government involvement and admiration for individual efforts.
• Popularity:
• Communism was popular in the Eastern Bloc countries when the Soviet Union existed.
• Capitalism is popular in the western world.
• Class Classification:
• Communism strives for a classless society with no rich and poor.
• Capitalism has a class system with both rich and poor.
• Distribution of Products and Earnings:
• In communism, all share everything equally.
• In capitalism, people earn based on their work and efforts.
• Public vs Private Ownership:
• Communism encourages public enterprise and property.
• Capitalism encourages private enterprise and property.
• Resources:
• Resources are controlled by the state in communism.
• Individuals control resources in capitalism, resulting in more profits for those who own them.

Gil Tillard
Gil Tillard
Gil Tillard is an accomplished writer with expertise in creating engaging articles and content across various platforms. His dedication to research and crafting high-quality content has led to over 5 years of professional writing and editing experience. In his personal life, Gil enjoys connecting with people from diverse backgrounds and cultures. His curiosity and eagerness to learn from others fuel his passion for communication. He believes that engaging with strangers can be both enlightening and enjoyable, making it easier to strike up conversations and expand one's horizons.


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