Answers
The primary difference explained in capitalism vs communism is that capitalism is an economic system that allows private ownership and promotes the idea of a free market; in contrast, communism favours collective ownership and restricts the free market with government intervention portraying a planned economy.
Explanation
What is Capitalism?
Capitalism occurs when people are allowed to own and control capital assets, use them according to their self-interest, and earn profit by producing valued goods and services utilizing capital resources. In a capitalist economy, government intervention will be minimal; hence, the production of goods and services is driven by supply and demand. It creates an environment that promotes individualism, innovations, competition, efficient allocation of resources, the efficiency of the private sector, presenting consumers with better choices, and improving living standards. capitalism vs communism.
On the other hand, capitalism is often blamed for favouring the rich. The opponents of the system advocate that in capitalism, the rich get richer and the poor get poorer instigating the unequal distribution of wealth and inequality, creating social division. Moreover, in the wake of producing profit, the capitalist model exploits the workers, and unfair competition can also lead to the emergence of monopolies in specific sections. All these disadvantages communicate the need for the reformation of capitalism.
What is Communism?
Communism ideology aims to establish common ownership and eliminate the private property concept. It simply focuses on replacing private ownership and introducing state-owned organizations, projects, resources, and properties, ensuring economic equality and fairness. Such economies work towards achieving social development, welfare, and the overall development of all the citizens of a nation.
China has long been a significant example of a communist government where the government-controlled major resources, funds, products, and services, but later due to globalization and certain other aspects, has started implementing some elements of capitalism to grow business and take advantage of trade opportunities. Similarly, it has been observed that many nations turn their heads toward capitalism to obtain more opportunities, attain industrialization, and reap the benefits of globalization hence strengthening the capitalism vs communism debate.
Capitalism and communism are inherently contrasting concepts. While capitalism propagates individualism, communism is associated with collectivism. Industrial capitalism was popularised in the 18th century, and modern communism was propagated in the 19th century.
The instances reflecting the conflict based on these ideologies were prevalent from the old times. For example, ideological conflict, and capitalism vs. communism in the Cold War of the 20th century. During the Cold War, the United States and Western European nations were based on capitalism and democracy. In contrast, the Soviet Union was based on communism and dictatorship, and Eastern European nations were under Soviet communist control. Many of the significant events in the Cold War contributed to explaining whether capitalism was better than communism or not.
