Capitalism vs. Communism
Communism and capitalism theories are the dominant economic ideologies that reached the peak of their confrontation after the Second World War. The arguments developed to solve socio-economic challenges and the sharing of natural resources. However, they represent a distinct approach. The difference is evident from the definition. While capitalism has an individualistic approach, communism advocates for collective interest before personal needs (Evans and Kelley 316). During the Cold War, the Soviet Union was pro-communism, while America and other western nations advocated for capitalism. The confrontation became so intense and triggered wars between the two camps in different countries. The focus of this paper is to understand the two theories by comparing and contrasting them.
The main difference between capitalism and communism was on ownership of resources and means of production. The proponents of communist ideology require that land and other resources to be owned by the state (King 389). This idea meant that everyone had an equal opportunity to deliberate on the usage of the land, and any decision was made on a democratic process. By consensus, all wages are standardized, and every output is shared. On the other hand, capitalists supported private ownership of land. The capitalist believed that every person has a unique ability, and one is only awarded according to their effort (Peck 1192). Meaning, most profits are taken by the owner of the unit of production, and the workers get paid according to their effort (Piore 237). Don't use plagiarised sources.Get your custom essay just from $11/page
Besides land, communist and capitalist do not agree on individual freedom. To accomplish independence in resource ownership capitalism must give people more freedom (Peck 1193). Others may view this approach as encouragement for human inherent selfish needs. As for communism, it is a noble course that goes against selfish human needs and prioritizes the community by taking away individual freedom (King 389). The interpretation of freedom in the two theories have advantages and disadvantages. Freedom in capitalism creates space for innovation, but it is also a recipe for some people to have exploitative control over others (Evans and Kelley 316). As for communism, it prevents exploitation but denies the personal space for creativity and innovation.
The two theories also differ in the structure of society. Because of equality, communist advocate for a classless society of equal men and women, and the difference in religion, nationality is not an issue (Piore 238). The challenge with this philosophy is that everyone is uniquely different, and it is impossible to confine people in the same line of thinking or ability. The apparent class distinction in capitalist society is of the have and have-nots. The freedom and private ownership of resources make the rich to grow more productive at the expense of the poor (King 390). This process contradicts the promotion of personal freedom as the poor operate according to the wish of the rich.
The main objective of the two theories is to control people and promote development in the best way. Despite the difference, human beings have a selfish desire for power and control. As communism promotes altruism, they forget selfish human nature, and that makes their philosophy unstable. On the other hand, capitalist autocrats have the power to control wealth and people (Evans and Kelley 318). Both theories try to meet human needs that are driven by the same factor. A sustainable philosophy is one that considers personal and communal needs.
In conclusion, communism and capitalism have a vast difference that includes ownership of resources, freedom, society structure, and power. The theories have different approaches but are all limited by selfish human needs and desire for self-determination. The same limitation that affects the implementation of communism and similarly limits the sustainability of capitalism.
Works Cited
Evans, M. D. R., and Jonathan Kelley. “Communism, capitalism, and images of class: Effects of reference groups, reality, and regime in 43 nations and 110,000 individuals, 1987-2009.” Cross-Cultural Research 51.4 (2017): 315-359. Retrieved from: https://doi.org/10.1177/1069397116677963
King, Francis. “Stephen A. Smith, ed., The Oxford Handbook of the History of Communism; Silvio Pons, The Global Revolution: A History of International Communism 1917–1991.” (2017): 388-391. https://doi.org/10.1177/0265691417695979mm
Peck, Jamie. “Problematizing capitalism (s): Big difference?” Environment and Planning A: Economy and Space 51.5 (2019): 1190-1196. Retrieved from: https://doi.org/10.1177/0308518X19850967
Piore, Michael J. “Varieties of capitalism theory: its considerable limits.” Politics & Society 44.2 (2016): 237-241. Retrieved from: https://doi.org/10.1177/0032329216638059