Fascism, Capitalism, Socialism and Communism

Fascism, Capitalism, Socialism and Communism

Introduction

A political system can be defined as a body that is responsible for government official decision-making process. The movement makes decisions on economy, legal systems, culture and all other departments of a country affecting the economic status of a nation. This discussion will elaborate on capitalism, communism, fascism and socialism political systems.

Capitalism

Capitalism refers to an economic scheme where almost all means of production are privately possessed and run. Additionally, the capital and manufacture reserves, delivery and commodities’ charges are determined by the free market but not by the state; hence production is run for profit generation by private entities. In capitalism, private entities all the four factors of production, including labour and entrepreneurship. It is characterized by private ownership and the income derived from the purchase. The supply of goods and services depends on laws of supply and demand, which call for an increase in price with increasing demand (Holcombe, 2015).

Additionally, in capitalism, there is a free capital market operation where demand and supply set prices of commodities. Capitalism has some advantages such as the provision of most excellent goods at best charges and economic expansion through inherent recompence for invention. Capitalism also has disadvantages which comprise of inequality and ignorant to external costs such as climatic changes and environmental pollution. Examples of a capitalism country are united states of America and united kingdoms.

Communism

From the word community, communism means society owns the property intending to render societal equality through economic equivalence. In communism countries, the civilians work together towards the achievement of a common financial goal. Communists argue that labour profit belongs to the labourer but not those who control the production. Although the government does not possess the force of labour legally, the central organizers inform the public where to work (Engels, 1847). Communism was developed by Karl Marx, a philosopher of German who believed in equivalent responsibility of all citizens to work and institution of industrial forces. Main Advantage of communism is the easy mobilization of economic resources as a result of central planning. The major disadvantage of communism is facing isolation from the free market. This means that demand and supply laws do not apply. Examples of countries practising communism up to date are China and North Korea.

Fascism

Fascism refers to a political structure led by a dictator where the government takes control of businesses and opposition of labour is forbidden. Fascism promotes state and race above the individual and stands for tyrannical federal governance. It is characterized by severe economic and social oppression and violent suppression of opposition. It originated from Italy. Its advantages include the creation of wealth through the quick decision making and hence economic development as well as the lessening of crime as a result of dictatorship. Disadvantages include suppression and violation of human rights as well as disregarding intercontinental regulations. Example of a country that practised fascism was Italy.

Socialism

Socialism refers to the economic structure where everybody in the community owns factors of production equally. The ownership is obtained through independent voting or civic collaboration where everyone participates. The postulation of this political structure is that the elementary nature of human being is cooperation. Here, the government values the wellbeing of the community rather than individual intentions and hence the equal distribution of resources to its citizens (Bevir, 2016). Advantages of socialism are equal profit sharing and no workers’ exploitation and thus, poverty elimination. Disadvantages include ignoring the competitive and personal gain individuals since it is based on cooperation, and it does not reward entrepreneurs; hence innovation and creativity are not enhanced. Example of a country that applied socialism in Cuba.

Conclusion

In concluding, the economic development of a country depends on the political structure applied. Use of communism means private entities will benefit and use of communism and socialism means that everyone will benefit economically. Living standards of civilians is also determined by the political structure used.

Reference

Bevir, M. (2016). The making of British socialism. Princeton University Press.

Engels, F. (1847). The Principles of Communism’, translated by P. Sweezy. Marx and Engels: Selected Works, 1, 81-97.

Holcombe, R. G. (2015). Political capitalism. Cato, J., 35, 41.