Veiga1

Jaida Veiga
Mrs. Tubbs
English 1301-054
July 25, 2020
Capitalism vs. Communism
During the twentieth century, two new ideologies called capitalism and communism were

created. They were developed by philosophers’ Adam Smith, capitalism, and Karl Marx,

communism. Throughout this time, capitalism and communism political systems have tried to

benefit their citizens the best way they can despite being criticized by people with different

political views all around the world. These two economic and political systems possibly have the

most different types of governments created from disagreeing on topics like social classes,

ideology, and how much the people can control yet they still have the same goal at the end of the

day.

Karl Marx, the philosopher who developed Communism, a command economy,

described his ideology as a necessity and not as something that should be thought of as useless.

He wanted the goal of communism to be about turning societies classless and stateless, meaning

that every citizen is equal and receives the same treatment. In a communist country, such as

China or Vietnam, the government has total control over the major productions and natural

resources taking place in the country. The form of government in communist countries usually

fall under a totalitarian system, which prohibits different parties to coexist. This might be a

disadvantage looking in as an outsider because a government should not control the thoughts and

personal beliefs of its citizens. Nonetheless, the wealth in the country is divided equally among

the citizens since no social classes take place, which is an advantage. Theoretically, an increase

in childcare, public health and education, and social services can advance societies and labor

efficiency. Capitalism, on the other hand, has a market economy and a political/economic
 Veiga2

ideology that believes everyone has free will to make their own decisions. They can create their

businesses, sell/trade goods, and own private property. This is an advantage in a capitalist

country because people can explore different paths and find new ways to support themselves

without the government limiting them. The wealth in the country is divided unevenly because

there are social classes that divide citizens. This may be beneficial or cause a drawback

depending on your level of education or ability to work.

In capitalism, one major drawback is a firm's power to overthrow the community they

provide financial support for. Since firms can set personal rules and the government does not

control their business, firms can gain monopoly power and utilize consumers. This normally

ends up damaging many lives financially and eventually leads to inequality. It also influences the

differences in social classes. The upper class is made up of the wealthiest in the country while

the middle and low class is made up of people who make less money. These countries usually

have a free market which is a system where private corporations can make decisions based on

prices of the goods in which they make. On the other hand, communist countries have the exact

opposite. Their governments control all businesses within the country and decide on the prices of

goods and services.

However, these two political and economic systems can be similar in a few ways. First

off, the Cold War. The point of the Cold War was primarily between the United States, a

capitalist country, and the Soviet Union, a communist federal socialist state in Northern Eurasia.

The two sides caused issues internationally dealing with who should be the dominant global

doctrine. During the war, the two sides agreed that Adolf Hitler should be taken out of office,

wanted their side to prevail, and agreed that capitalism and communism cannot coexist. Since

both systems believe in opposite ideologies, it makes works out as to why both agree to such

terms. Secondly, both systems are built upon economic beliefs and governments, even though
 Veiga3

they are different types. The definition of economics is the branch of knowledge concerned with

the production, consumption, and transfer of wealth. This makes sense because both systems

transfer wealth and products one way or another. In communism, the government controls both

aspects, while in a capitalist country, the people have the freedom to control the wealth and how

their products go around. Thirdly, the two systems try to figure out what is the best way to

allocate goods around their country. Even though they approach it in two different ways, the goal

is the same. Capitalism approaches it by allowing the people to make their own decisions while

communism allows the government to make decisions for the people. Both economic systems are

primarily doing the same thing, just differently. Lastly, both what to achieve a higher standard of

living for their citizens. While communism distributes the wealth equally among all citizens, it

allows everyone to live at the same level, causing no social classes and wealth differences.

However, capitalism is the exact opposite. It allows the people to compete against each other in

the marketplace, working up the social classes, and increasing their standard of living.

To conclude, capitalism and communism's economic systems are two entirely different

ideologies. Capitalism is a system in which the country's trade and industry are controlled by

private owners while communism is a system in which the country’s trade and industry and

controlled by the government. By the time they were developed in the twentieth century, people

around the world have been choosing which economic system they believe is best. From

disagreeing on topics like social classes, government form, who owns the property, and ideology

the two systems are opposites but have few similarities dealing with the Cold War and end goals

for their people.