Difference Between Communism, Capitalism and Socialism

-

                                         


WHAT:

The terms Communism, Capitalism and Socialism are ideologies distinct from one another.

  • Communism and Socialism arose as a form of protest against the exploitation of the working class during the age of the industrial revolution (1760 -1840).

  • They are both an alternative to capitalism.

COMMUNISM

CAPITALISM

SOCIALISM

No Private ownership

Total Private ownership

Limited Private ownership

Central Government

Market Forces

Government and Private Entities 

No Class distinction

Class distinction

Limited class distinction

Production for basic needs

Production for profit

Production for societal needs

Karl Marx

Adam Smith

Charles Fourier

 

Differences between Capitalism, Communism and  Socialism

Differentiating Factors

Capitalism

Communism

Socialism

Ideology

Maximization of profit by any means necessary. It also believes in Laissez-Faire, a philosophy which emphasizes on leaving circumstance to run their natural course without any external intervention

From each according to his ability, to each according to his needs

From each according to his ability, to each according to his contribution

Economy Planning

In capitalist societies, the economy is planned as per the functioning of the free-markets

The economy is planned by the Central Government

The economy is planned by the central government

Ownership of Economic Resources

Private ownership of economic resources and property is actively encouraged with little to no government intervention

All economic resources are publicly owned and controlled by the government. Individuals hold no personal property or assets.

Individuals can own personal property but all industrial and production capacity is communally owned and managed by a democratically elected government.

Class distinction

There exists a distinct class whose standing in society is measured by the material wealth in their possession

Class is abolished. The chances of one worker earning more than the other are nonexistent

Classes exist but the differences between them are greatly reduced. It is possible for some people to earn more than others.

Religion

As per the ideology, it is indifferent towards religion, but bias thus exist towards religious groups who are well-off or as rich as another religious group

Religion is effectively abolished

Freedom of religion is allowed

Welfare

The welfare system is available only to those who have the wealth to pay for their services. 

Supports widespread universal social welfare with an emphasis on public health and education

The state will be for the welfare of everyone in the society without any discrimination 

Origins

The modern form of capitalism can be traced to the early Renaissance period in the 15th -16th Centuries. The wealthy merchants of Italian city-states engaged in small industry and wage-labour practices at the time

Although the concept of egalitarian societies existed since the time of Ancient Greece, the foundations of modern-day communism were established in 1848 by the German Philosopher, Karl Marx (May 5th, 1818 – 14 March 1883).

The economy of the 3rd century BC Mauryan Empire was described by economists as “a socialized monarchy” and “a sort of state socialism”.

It became more prominent towards the end of the 18th century and after 1848

Comments

Post a Comment

Popular posts from this blog

6. Financial Relations Between Centre and State

-
Image
WHAT Generally, in a typical federation along with the distribution of legislative and administrative powers, the financial resources of the country are also distributed to ensure the financial independence of the units. However, the Indian Constitution does not make a clear cut distribution of the financial resources and leaves much to be decided by the Central Government from time to time. The financial resources which have been placed at the disposal of the state are so meager that they have to look up to the Union Government for subsidies and contributions.  HOW Taxes Exclusively Assigned to the Union Income from certain subjects like customs and export duties, income tax, excise duty on tobacco, jute,’ cotton, etc.,  Corporation tax, taxes on the capital value of assets of individuals and companies  Estate duty and succession duty in respect of the property and other than agricultural land   Income from the earning departments like the railways and postal d...
Read more

The Evolution of Life on Earth

-
Image
The evolution of life on Earth, from the emergence of eukaryotes to the rise of Homo sapiens, is a complex and fascinating process that spans billions of years.  Here is a step-by-step outline of key evolutionary milestones, focusing on when it occured,  what  happened, where  it took place, why  it was significant, and how  it occurred. 1. Origin of Eukaryotes   When:  2 billion years ago What: Eukaryotic cells appeared, characterized by a nucleus and organelles (like mitochondria and chloroplasts).  Where: Likely in ocean environments. Why: Eukaryotic cells were more complex and versatile than prokaryotes, allowing for more diverse forms of life. How: Endosymbiosis — larger prokaryotic cells engulfed smaller ones (such as bacteria that became mitochondria), forming a mutually beneficial relationship. This marked the beginning of complex multicellular organisms. 2. Multicellularity   When:  1.5 billion years ago What: Single-...
Read more

All about The Taliban

-
Image
WHAT The Taliban emerged as a force for social order in 1994 in the southern Afghan province of Kandahār and quickly subdued the local warlords who controlled the south of the country. By late 1996, popular support for the Taliban among Afghanistan’s southern Pashtun ethnic group , as well as assistance from conservative Islamic elements abroad, had enabled the faction to seize the capital, Kabul , and gain effective control of the country. Resistance to the Taliban continued, however, particularly among non-Pashtun ethnic groups—namely, the Tajik , the Uzbek , and the Ḥazāra —in the north, west, and central parts of the country, who saw the power of the predominantly Pashtun Taliban as a continuation of the traditional Pashtun hegemony of the country. By 2001 the Taliban controlled all but a small section of northern Afghanistan. More significant was the fact that the Taliban allowed Afghanistan to be a haven for Islamic militants from throughout the world, including an exiled Saudi...
Read more