The Impact Of Communism And Capitalism

1694 Words7 Pages
Stephanie LeBlanc
Professor Wesley Austin
Economics 201
16 October 2016
The Impact of Communism There are faults within both communism and capitalism, but sometimes one can even effect the other. This paper will explore what the possible connection is between North Korea’s communistic economy and how it may have impacted South Korea’s capitalistic economy. At the end of the World War II in 1945, two separate regimes emerged on the Korean peninsula to replace what was once the colonial government. The United States military government took over the southern half, now known as South Korea, while communist Russia set up a Korean leadership in the northern half, now known as North Korea. The political division meant sudden disruption of trade with both Japan and within Korea, causing serious economic issues. While trying to control the chaos that happened after the de-colonization, the United States military government privatized properties previously owned by the Japanese government and civilians. During World War II the economy of the Korean peninsula was in absolute shambles.
Despite all the measures taken by both the new South Korean government and the United States military to help the country get back on its feet, The Korean War then soon broke out in 1950, killing one and half million people and destroying about one quarter of capital stock.
After the war, South Korea followed most other post-World War II countries’ examples and tried to help create economic growth by

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