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Communism vs. Capitalism

Updated on December 21, 2013

As many of us know, every country has a type of economic system that is used by its authorities to boost its economy. The most common types of economic system are the capitalist system and the communist system. The communist system and the capitalist system have many different advantages and disadvantages even if they are used by many authorities to stimulate the economies of their countries. Many people are not aware of the advantages or the disadvantages of the capitalist system and the communist system. They are not also aware if they are different somehow. However, as a matter of fact, the communist system and the capitalist system are different in many ways, and each of them can help or harm a nation in many different ways. The capitalist system is different compared to the communist system because in a capitalist system, property right exists among individuals, or education or wealth, which is not provided by the government, does not distribute equally; people are motivated by self-interest; or most individuals are not financially equal. However, in a communist system, it is absolutely different.

Property right exists in a capitalist system but not in a communist system where property, education, or wealth is distributed equally by the government. In a capitalist system, people possess their own properties and have the right to do whatever that they want with them in most cases. Their properties do not belong to the government. They are the ones who can decide what to do with them. The government has little right to their properties because of the many tremendous limitations that it has. In addition to that, most people have to pay for their education in a capitalist system. There are some capitalist countries where people cannot afford to pay for their education; as a result, they cannot go to school. They cannot find a source of income to pay for their lives. However, in a communist system, the government is the one who is in charge of all the properties, who can dictate people what do with them, or who is in charge of education. No one has any property right. The government shares all the properties and provides education equally to the people. Everyone has the chance to go to school or to pay for his or her life. In a simple statement, in a communist system, properties are owned by the state or by the government, but in a capitalist system, properties are owned by individuals.

People are motivated by self-interest in a capitalist system, but in a communist system, it is different. Almost everyone wants to be at the top of the ladder in a capitalist system. Most people do not want to share their properties. They do not care about others. They care only about themselves. Some rich people will not be afraid or care to take a dollar from a poor so that they can become richer. All that is in their mind is trying to have more. However, in a communist system, people are motivated to help each other out. They collaborate to help the community as a whole. Because properties are distributed equally to individual by the government in a communist system as it has been stated in the preceding paragraph, people are not motivated by self-interest, but they are very motivated by their zeal to help their country or their community to prosper as a whole.

Lastly, not at all, most people are not financially equal in a capitalist system, but in a communist system, it is somehow different. Because most people are motivated by self-interest and wealth and education are not distributed by the government, people end up not to be equal in a capitalist system. That causes many problems. People who have more money may think that they are better than the ones who have less money. People who have more education may also think the same way as the ones who have more money. When people are motivated by self-interest or have to defend for themselves, the elephants are going to save themselves, but the ants are going to struggle or die because they lack many capacities that the elephants have. Sometimes there is a lack of balance in the distribution of income. For example, 5 percent of the people who are at the top of the ladder have more than eighty percent of the United States’ resources, but the other 95 percent who are at the bottom of the ladder have less than twenty percent of the resources. That simply means that the rich represent only 5 percent of the population but have more than fourth-fifth of the resources, or the people who are in the middle class and the poor represent 95 percent of the population but have only less than 20 percent of the resources of this country. However, in a communist system, almost everyone is equal. People have equal opportunities. The government gives everybody the same amount of right or wealth or provides equal education to everybody. As a result, everyone has the chance to eat a piece of bread. However, that did not stop many people from saying that the communist system is somehow disadvantageous because it almost gives the habitants no freedom or possibility to grow or to become billionaires as the people in a capitalist system can.

Communism vs Capitalism from youtube

In conclusion, both a capitalist system and a communist system have many advantages and disadvantages; as a result, knowing which one is better is difficult but remains neutral. In a capitalist system, people are motivated by self-interest, which causes many of them to grow easily, but that do not leave space for many others to grow or to eat a piece of bread. Nevertheless, in a communist system, everyone can eat a piece of bread, but it is almost impossible for them to grow as many rich people in a capitalist system can. Property, education, and wealth are equally shared by the government. Everyone is equal. But in a capitalist system, people have to defend for themselves and are not equal. Those aspects seem to make the capitalist system and the communist system different to each other.


AA, Palm Beach State College (May 2012)

BS, Florida Atlantic University (Expected date of Graduation, May 2014. 2 more economics electives courses to go).


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    • wrenchBiscuit profile image

      Ronnie wrenchBiscuit 3 years ago

      paulynice roldens,

      I have been meaning to get over here and see what this is all about.You have written very well,and I like the flow of your article.You have expressed the truth without a heavy-handedness,that is admittedly difficult to do considering the gravity of such a serious topic.I also like the video ,especially the comment; to paraphrase: " If you are successful you can be rich like Bill Gates and me". That's Funny.This the mantra of the rich,but no more realistic than "With wings we could fly". LOL! Of course we could!

      It is true that there have been oppressive tyrants at the head of Communist regimes,but Pope Nicholas V ,who essentially helped lay the foundation for Capitalism,was just as tyrannical and set in motion a West African slave trade that opened the very gates of hell.What many fail to recognize is that what a man looks like on paper is not always manifested in the flesh.Pope Nicholas was no more a "Christian" than many of the so-called Communists, whose look and feel more resembles Fascism.Jesus would have never sanctioned slavery in America,yet 50 generations of "Christian" Americans have profited from it.Thanks,I enjoyed it.

    • Simba73 profile image

      Simba73 3 years ago from UK

      Can't remember who said it but it's a pretty realistc observation......

      Which ever falls first between capitalism and communisum, one will will fall quickly after the other.

      For me, I love them both !! well the idealism of them, although my ex father-in-law fought for Pol Pot and believe me there is nothing worse than killing for utopia !!!

      But I must add if we turn our heads and ignore what our capitalist nations do for gain we are NO's our choice to stand agaist evil and not try to change he things we cannot, but the things we can in our own lives which will have the butterfly affect that CAN change the world for the better, it starts with our kindness and compassion to others, not the hatred of things we don't truly understand.....we all rant and write about things but lets start where we can make a difference, because we get one shot.

      Who's with me ???

    • paulynice roldens profile image

      Roldens Paulynice 4 years ago from Boca Raton, Florida

      k n thanks my friend for your comment...

    • vkwok profile image

      Victor W. Kwok 4 years ago from Hawaii

      Really insightful article about the flaws of capitalism and the gains of communism. This is just my opinion but I agree that capitalism is messed up. However, that does not mean that communism is perfect. Like all things in reality, it has its shortcomings.

    • paulynice roldens profile image

      Roldens Paulynice 4 years ago from Boca Raton, Florida

      Thanks body for your subjection I make some changes........You can also referred to that link: it can help you out....The only mistake that I made was that I forget I interchangeably used communism with socialism...But I fixed it after you make the call....thanks.....

    • RBJ33 profile image

      RBJ33 4 years ago

      Your hub changes from "Socialism" to "Communism," back and forth. All Socialism is not Communism. The Communist version is not the good version, and there are good versions of Socialism. You can find them if you research a bit more.

    • alancaster149 profile image

      Alan R Lancaster 4 years ago from Forest Gate, London E7, U K (ex-pat Yorkshire)

      Everyone's an equal, but some are more equal than others. Ever read George Orwell's 'Animal Farm'? That was based on his observations, having seen through the system as operated at the time from the Kremlin. He'd fought in the Spanish Civil war in 1936 and become disillusioned with the system he'd fought for.

    • paulynice roldens profile image

      Roldens Paulynice 4 years ago from Boca Raton, Florida

      Yea my friends I agree with you.all..@alqncaster 149 just let you know tht my article titled what causes college students to fail or drop out almost turn into a medium book...I expand it

    • The0NatureBoy profile image

      Elijah A Alexander Jr 4 years ago from Washington DC


      In the United States of America, the home of today's capitalism, there is no individual ownership of land. Here they call the rent for one to keep their property taxes. Here, when the people don't pay their taxes their property is put on a "tax sale" where anyone with the amount of taxes owed can rent without ownership the same property until/if they fail to keep the taxes up less the property is again put on tax sale.

      The only ACTUAL difference between the United States' Democratic fronted Capitalistic government is and the so called Communism is; in Communistic {meaning all things are commonly held by everyone without classes or any other distinctions} Socialist {again mean equality of all people} nations those in charge tends to beat the bodies to control the minds while in this Capitalistic Democracy {translating to a government OF, FOR and BY the people and another way of saying, according to the US Constitution's Preamble and article 6, the government is only trustees [written "Public Trust"in article 6] of the people who are the actual controllers of the government} We The People where have allowed the government to become The People's rulers rather than the other way around and, therefore, government has developed an "Industrial-Military-Complex" where they dictate what schools and churches are allowed to teach and attempt to legislate the individual lives of the people, thus, raping the minds for control of our bodies.

    • KoraleeP profile image

      Koralee Phillips 4 years ago from Penticton British Columbia Canada

      Very interesting Hub. And the video at the end was a great added touch. A couple of weeks ago I started studying capitalism on a deeper level, and your Hub is a great resource for my research.

      I'm setting up a blog that touches on capitalism quite a bit, although it's not my blogs prime subject.

      The comments above mine, from my view, address communism more than capitalism. In a capitalist society, the rich are blamed for the gap, between the rich and the poor, but I think that the rest of society has to take responsibility for their own situation, and it can't all be blamed on the rich.

    • alancaster149 profile image

      Alan R Lancaster 4 years ago from Forest Gate, London E7, U K (ex-pat Yorkshire)

      The other name for Communism is Dialectic Materialism. Many confuse Communism with Socialism. Certainly the two can be inextricably linked, but by no means is a Socialist state necessarily a Communist one.

      The differences have been borne out by the behaviour of an elite, as in Romania and Russia amongst others. True there are administrative elites in Socialist countries, but they tend to shift like quicksand. An administrator can be dismissed or demoted, a member of parliament voted out or de-selected. In the few so-called Communist states, China and North Korea being the obvious ones, the weight of public opinion is manipulated from a central office that also handles propaganda.

      In WWII Soviet Russia and Nazi Germany were only different by label. In both there was a pathological hatred of those who swam against the current. That is how North Korea operates now. China seems to be swimming against its Maoist current, but there is still the strong state system that tells the population what it should do and examples are made now and then of 'wild' behaviour by either rogue administrators or ordinary citizens trying to buck the system.

      Free market competition as understood in the English-speaking world is understood slightly differently in Europe, Africa, Central and South America and Asia. They all have a different 'take' on 'Capitalism', ranging from forms of Nazism in South America to 'dialectic elitism' in Asia and Africa (if you're the wrong tribe, forget it).

      It's never so simple you can sum it up in two lines.

    • filecluster profile image

      Alexandra Vasiliu 4 years ago from Timisoara, Romania

      I sure would like those who think communism sounds good to experience it for 1-2 years. And I mean the real communism, not those theoretical ideals, because in reality it's very different.

      My country was for half a century under communist regime and the ones that regret it are the lazy, the thieves and the stupid people that were well "fed" during those years, whether they deserved or not.

    • Rchrdsnc profile image

      Carl Richardson 4 years ago from Midwest USA

      Obviously, there is still a lot of bad blood out there over the long reign of the USSR and its satellites. But capitalism seems to always produce crises of one kind or another....

    • breakfastpop profile image

      breakfastpop 4 years ago

      If communism is so wonderful why is it that so many people are willing to risk their lives to get away from it?