Comparison Essay on Communism and Capitalism

The 1848 copy release of the communist proposal opened up a can of worms for the diehard capitalists all over the world. Karl Marx and his counterpart Friedrich Engels were the force behind the communist reforms.

Before this, most folks in the West adopted capitalism where the world allowed individuals to own private property, conduct private and public businesses, and keep the profits from their investments. Karl and Friedrich cited the uneven distribution of wealth as seen in the capitalist economy. This was the beginning of a global populist uprising in the quest to have the even distribution of wealth. Countries struggle to find a perfect balance between the two conflicting economies.

Capitalism

Capitalism consists of private ownership of assets, production of goods or raw materials for the direct benefit of individual economic freedom. Individuals or groups of people privately own the majority of the existing production companies.

Free Competition

Capitalism runs by free competition devoid of government intervention. Free enterprise assumes that the winner carries the day with prices moderated at low levels to allow free and fair competition among the players.

Supply and Demand

In a capitalist system, supply and demand determines the pricing of goods. The laws of buying power dictate low prices for high supply and high prices when the supply of goods is low. This cycle controls costs to prevent extreme highs and lows in the supply/demand chain.

Communism

Karl Marx was outraged by the rising gap between the rich and poor midway the 19th century. He discredited capitalism as an outdated, exploitative economic system to the regular workers. He instigated an uprising against the rich whom he deemed poorly treated by the wealthy. Marx’s dream was to replace communism with capitalism for equal distribution of resources. Communism is viewed as a means to correct the errors of capitalism.

Equality and Distribution of Resources

Communism does not advocate for individual ownership of property, to discourage greed and unfair competition of the available resources. Marx believed that Property should be shared equally and that people should be in charge of the economy. In communism, the government controls all resources. The goal of communism is to reduce the gap between the rich and the poor, equal distribution of resources and economic equality.