Capitalism is a system of governance for economic affairs that has emerged in different settings and continues to evolve over

time. Dictionary of Modern Economics defines capitalism as a: Political, social, and economic system in which property, including capital assets, is owned and controlled for the most part by the private sector. Capitalism is often defined as an economic system where private actors are allowed to own and control the use of property in accord with their own interests, and where the invisible hand of the pricing mechanism coordinates supply and demand in markets in a way that is automatically in the best interests of society. In this perspective, the role of the government here is to regulate & oversee the process of the market & to make sure that the market is competitive and no monopoly is taking place. According to Oxford dictionary, communism is “a political theory derived from Marx, leading to a society in which all property is publicly owned and each person is paid and works according to his or her needs and abilities.”

the resources or the means of production lies with a private owner. In Communism. the profit in a capitalist structure belong to the private owner only. . But for capitalists. While the private party controls the resources in capitalism.It was formed and first implemented in the former USSR “Soviet Union” and other places like China. communism is a government run economy. While capitalism is a self regulated economic system. Contrary to this. On the other hand. One of the major differences between capitalism and communism is with regard to the resources or the means of production. it is the society that controls the whole means of production in communism. individual freedom is above the state or society. For Communists. While the profit of any enterprise is equally shared by all the people in communism. in capitalism. it is the society or the government that determines the price structure in communism. the community or society solely owns the resources or the means of production. Capitalism and Communism never go together. the society is above individuals. Capitalism and communism are different in their political and economic ideologies. the individual has full control over production and decides on the price structure. In capitalism.

3.Communism stands for equal sharing of work. the community or society solely owns the resources or the means of production. Capitalism can be said to be the exploitation of the individual. communism stands for a class less society. But in capitalism. there is a great divide of the class in capitalism. . the resources or the means of production lies with a private owner. the profit in a capitalist structure belongs to the private owner only. it is the society that controls the whole means of production in communism. in capitalism. While the profit of any enterprise is equally shared by all the people in communism. Moreover. While the private party controls the resources in capitalism. While every one is equal in communism. On the other hand. In Communism. While Communism stands for abolishing private property. an individual is responsible for his works and if he wants to raise the ladder. he has to work hard. according to the benefits and ability. 2. Capitalism stands for private property. which doesn’t see any difference between the rich and the poor. capitalism divides the society into rich and poor. On the other hand. Summary 1.

Capitalism stands for private property . individual freedom is above the state or society. For Communists.4. 5. But for capitalists. the society is above individuals. While Communism stands for abolishing private property.

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