Capitalism vs. Communism Throughout history, there have been many systems developed in order to have a better society. Two of the most analyzed, and debated systems that have tired to change an economy for the best are communism, and capitalism. Communism, and capitalism have been compared on many levels, such as why they will or will not work, and which one works better. Throughout this essay I will concentrate on the differences, and similarities of how each operates, along with the benefits, and problems that each of them produces. Both of these economic systems theories came about around the same time, in the late 17 th to mid 18 th centuries.
One of the main contributor for capitalism was Adam Smith, writing The Wealth of a Nation in 1776, and Karl Marx for communism publishing the Communist Manifesto in 1848. These both were looked as a manual or guide for achieving such advancements. Communism called for the people to not be selfish and work for the benefits of the community rather for their well being. It asks them to see that what benefits the whole, benefits themselves. Capitalism on the other hand is focused on working for individual growth, and personal ownership to provide wealth for one's self. Communism plans to have a higher power or government control the economy to create a better way of living, by which all goods are equally distributed.
As capitalism wants the government to not play a big role in the system, but instead wants it to be up to private ownership to produce and distribute the goods. This is the theory of a free market, based on supply and demand to take care of the consumer welfare. Capitalism gives people the freedom to do as they wish, and allows them the opportunities to work to gain great wealth, or to just survive in the society. While communism sets direct demands on the work you do and what you need to produce, so others can benefit as well as you from your hard work. There are many different outcomes and problems that can occur as a result of the different systems. The benefits for communism are set up on a larger scale that takes time and effort, as for capitalism hard work produces quick gains.
Since it is harder for people of communism to see direct results from their hard work, there can be a tendency of people doing less, but still receiving the same as everyone else. Thus, there needs to be some type of point system, which makes sure each person does enough work to show for the goods received. If the work is not done then something needs to be done, such as not giving them their share, jail time, or kicked out of the community, resulting in poorer living standards. Capitalism however, gives each individual a choice of the benefits they will receive from working hard or not.
You still have the chance to be poor, but unlike communism you have the chance to become rich. In communism the hardest workers receive the same, but in capitalism the hardest workers reap the most rewards. Communism asks the government to decide what is needed for each individual to live and be equal. They tell the community what demands need to be meet to produce and distribute enough materials equally for everyone. Capitalism depends on supply and demand instead of direct commands, in order to make sure there is not to much or to little of certain products. If there is not enough of a product wanted then the price will rise, and since you can receive more money for this product the production will increase.
Once there is more then enough of that product on the market, the demand will begin to drop, resulting in the price and production to drop. Communism shows more care and concern for one's fellow neighbor, than capitalism does. In communism people are supposed to work hard so they produce enough materials for everyone, forming a strong community bond. Capitalism creates a system where peoples first concern is themselves, rather then the others, making things a personal investment instead of community investment. Capitalism unlike communism allows the chance for someone to leave a better future for their offspring through their hard work. Capitalism and communism are two political systems that are not going to be perfect for a nation, but capitalism at least does not try to make everything perfect.
I like a system that gives out rewards for hard work when it is done, rather then giving everyone the same even if they display a lack of effort. One reason that capitalism is more productive than communism is that, communism calls for to much change. Not only does it call for a severe change in production and distribution of goods, but also in human nature in order for one to care more for others than themselves. However, I do believe there is no such thing as a purely good idea, and that any concept has the ability to be abused.