The Dichotomy Between Capitalism And Communism Essay

Two of the world’s most popular and diverse economic systems are Communism and Capitalism. Capitalism, or a free enterprise economy, is an economic system constructed by the freedoms of the marketplace. The capitalist economy has several promising advantages. The capitalist government subtly changes and adjusts to the current conditions with ease. A communist system can be defined as an economic system where many, if not all, factors of production are controlled and owned by the government.

A Capitalist Economy vs Socialist Economy There are a variety of economic systems today, which can influence how prosperous we will be as individuals or as a group. Socialism is an economic system where the government will be greatly involved in the economy. In a socialist economy the government can control many industries, provide public institutions such as health care and education, and equalize incomes of the population. A socialist economy is one of low unemployment and stability, where the government sets production quotas and price regulation upon their perception of the needs of the economy.

Communist had a long history during the 20th century, and communism was very influential. Almost all of Asia and East Europe became Communist. From the start of the theory then many civil wars in Russia affected the whole world. Communist defined the idea of itself in many different ways, it helps many nations came together formed a party fought wars, but it also made many countries became really poor, and the economy in most of the countries got pushed back about 10 years. Communism is an economic and political system that sought to create an egalitarian society; it collapsed because of personal interest and government’s corruption.

eyes of the government. For example if you are a poor nobody from the lower

nation's great cities and as oil refining rose so did the popularity of the automobile. With these

The early 19th century in America saw the rise of industry and a booming economy, however, with industry came businessmen who saw an opportunity for power and profit. Even with help from the government, it would be a long time before the American people saw an improvement in the condition of the laborers and the regulation of corporations. Fast forward to the 21st century; two hundred years have passed and people are still struggling at the hands of a corporation-run economy. Throughout history, American laborers have been at the mercy of an industry controlled by a small few that did not have the best interest of the people in mind.

Three different types of economic systems used by governments are Communism, Capitalism, and Socialism. Each type of system is unique in different ways. Each has distinct aspects that make it what it is. In communism, the government runs everything and there are no social classes. The government in capitalism doesn’t interfere with any businesses and lets the citizens own and operate them. Socialism is basically a mixture of the two economic systems. The government runs certain businesses, but citizens run the rest. The three economic systems are different in the way they run things and regulate things.

     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.

In the article, “A Fair Day’s Wage”, James Surowiecki speaks on the issue with American employees not having a fair wage with huge companies (Par. 1). For instance, Surowiecki stated Mark Bertolini, “He said it was not “fair” for employees of a Fortune 50 company to be struggling to make ends meet.” (Par. 1). Surowiecki lastly speaks of how investing in the employees of a companies are a benefit to the company that are worth it. Surowiecki begins to talk about how the top 1% get most of the economic growth and speaks of how workers should be able to get paid a living and or a family wage (Par. 2).

Many proponents of capitalism argue that the wealth is shared with the workers. But is it true? According to an annual report in 2008, an average American CEO makes as much money in one day compared to what an average worker earns in one year1. And the disparity between business leaders and average workers continues to grow over time. From 1990 to 2005, the CEO’s salaries increased almost 300%, while a worker received a scant 4.3%2. The social consequence of this disparity is the concentration of wealth on a small percentage of population.

Communist rule was confined to the Soviet Union until the end of World War II.

Comparisons between countries and regions before and after the advent of capitalism in Eastern Europe, Russia and Central Europe as well as a comparison of Cuba and the ex-communist countries provide us with an adequate basis to draw some definitive conclusions. Fifteen years of "transition to capitalism" is more than adequate time to judge the performance and impact of capitalist politicians, privatizations, free market policies and other restoration measures on the economy, society and general welfare of the population.

There are many inequalities prevalent in the US, and as a capitalist society, one of the most common is economic inequality. The Equality Trust defines economic inequality, as the gap between the well off and less well of in regards to overall economic distribution (“How Is”). See, our capitalist society strongly benefits those with a capitalist mentality and can afford the means to invest/own capital. Over the years there has been an increasing wealth gap between the top one percent earners and the general population. So why are the rich flourishing while the poor are struggling in this capitalist environment? The policy decisions of our country allow this inequality to permeate throughout our industries, thus creating a culture of power and greed. One result of this culture is the explosion of high salaries in the US and Emmanuel Saez explains this trend in Striking it Richer. Saez affirms, “Indeed, estimates based purely on wages and salaries show that the share of total wage and salaries earned by the top 1 percent wage income earners has jumped from 5.1 percent in 1970 to 12.0 percent in 2006” (Grusky 89). Too bad that the 99 percent of America missed out on this massive economic growth spurt. When economic growth is not evenly distributed among the general population, people tend to question our entire system. This has been an increasingly controversial issue, where corporate America is responsible for the constant exploitation of low-level employees. Through my

This essay will compare the economic principles of capitalism and communism by giving brief historical background on both and describing the two. I will begin with the father of economy, Adam Smith, and finish with the theories of Karl Marx.

     What is Communism? Communism is the doctrine of the conditions of the liberation of the proletariat. It also can be defined as a conceptualized system of government in which resources and production facilities are the property of the entire society rather than individuals. In a communist society, labor is shared equally as well, and the benefits of labor are distributed according to need (Communism.4all 1). No one person shall be ranked higher than another and there is to be one person in charge of the society in a communism government. There are still to this day many countries that fall under the rule of communism and the ways they were transformed under communist rule is quite interesting.