Communism vs democracy aims at explaining the similarities and differences that exist between the two systems. For a better understanding, this article explains Communism and democracy as well as their advantages and disadvantages. Before understanding the similarities and differences between these two systems, it is necessary to understand what they stand for. Knowing the roots of communism and democracy is an important factor that will help in establishing their differences and similarities.
Table of Contents
- Communism pros and cons
- 1) Advantages of communism
- 2) Disadvantages of communism
- Free market malfunctioning
- Inefficient spending
- Sovereign default
- Currency problems
- Communism may deter international investors
- Difficulties in wealth accumulation
- Lack of incentives
- Confinement of overall freedom
- Self-fulfillment difficulty
- A narrow view of the world
- Poor international trade relationships
- Information handicap
- General public manipulation
- Slow technological progress
- Democracy pros and cons
- 1) Advantages of democracy
- 2) Disadvantages of democracy
- Communism vs democracy
- Differences between communism and democracy
- Frequently asked questions
Communism stands for a social and economic system whereby the entire community in a state owns and controls all means of production. The share of each individual is greatly dependent on their abilities as well as their needs. That is, every individual contributes according to his ability. The state allocates resources or distributes wealth according to their needs. Like the socialist economy, communism is a classless economy where every individual is equal. This basically has to do with the communal ownership of property rather than individual ownership. While communism is an economic system, it is also a political system or a system of government.
Who is a communist?
A communist is someone who believes that an economy’s challenges do not result due to capitalism, it is not the individuals’ fault. It can also mean a person who believes that the solutions to economic depressions, inflation, poverty, etc. lie in the establishment of socialism. A communist is an individual who believes in total equality, that is people having equal rights and opportunities regardless of tribe, religion, nationality, or race. Another meaning of a communist is a person who believes in, advocates for, or supports communism.
Communist countries that exist in the world include China, Cuba, Laos, Vietnam (Socialist Republic of Vietnam), and North Korea (Democratic People’s Republic of Korea).
Communism pros and cons
1) Advantages of communism
Communism helps in covering up the gap that exists between the rich and the poor. This results from the fact that the system creates a classless society and economy. A very wide gap between the rich and the poor exists in most countries of the world. Because of this, only a minority group of people have the ability to gather almost all the wealth while the general public or the masses possess little and almost nothing. It is clear that this causes the whole thing to look unfair thereby calling for the bridging of this wide gap.
A possible way of narrowing this gap is to introduce the idea of communism. In this economy, individuals can own almost nothing. This implies that those who have accumulated wealth will have to lose their wealth while the masses will enjoy the benefits of wealth distribution.
Food and medical supply assured
Communism guarantees food supply, medical facilities, as well as other infrastructure to the masses. In a case of a health emergency, there is no need to worry since medical facilities are assured. Also, the people do not have to worry about the issue of hunger because the system has assured food supply. This is so because the state is totally in charge of all production activities. With this, the system helps to protect the local population against health challenges and hunger. Because of this, the government can expand its production to make possible the optimal distribution of food supply and health facilities. Because of this, the masses will not struggle to survive.
Enhancement of the education infrastructure
The government is also in full control of all education facilities. They are responsible for funding educational institutions thereby assuring a high level of education. Because of this, people with low-income opportunities will also enjoy the privilege of having to access adequate education. In essence, communism makes it possible for the masses to have a higher level of educational equality.
Investments in infrastructure
Since private property ownership is almost non-existent, the government takes responsibility for the maintenance and expansion of infrastructural facilities within the locality. Of course, this greatly benefits the general public. In this case, the government places more consideration on important projects that they should achieve within a short period of time. It is true that most infrastructural facilities gear towards benefiting the majority of the local population, that is the masses instead of just small interest groups.
This economic system places a greater priority on social goals rather than that of few people. That is, more importance is placed on social benefits and welfare, not on personal interests. Also, lobbying is absent when it comes to the issue of political decisions for the benefit of just a few people. Under this economy, the government ensures that general benefits are in place. With this, communism is a great means of presenting the needs of the masses thereby avoiding lobbying in political decisions.
Lower unemployment rates
Since each individual is meant to contribute their own share to the benefit of the masses, no single individual is unemployed. By implication, almost every single person has the ability to contribute positively in his own unique way. This makes it possible for everyone to remain busy and contribute immensely towards the improvement of the overall standard of living within a country.
Overall safety level improvement
The state does not only have full control over production and employment but also the power to control and improve the overall safety and security levels in a country.
For example, the government can waive certain benefits for an individual who goes against the laws. It can as well engage such a person in jobs that do not have a conducive and favorable atmosphere. They adopt this strategy to help discourage violations of the law.
Avoidance of corporate monopolies
In a free market, higher tendencies of corporate monopolies exist. This happens as a result of the low level of regulations on the economy and politics. Usually, these monopolies are harmful to the economy as well as the general public. This is because of the high prices of goods and services that come in place. By implication, monopoly also implies the loss of social welfare. An important tool for preventing this unfavorable circumstance is the introduction of communism is an important tool for preventing this unfavorable circumstance. In turn, this helps in increasing social welfare through the lowering of products and service prices.
Since a major characteristic of communism is a classless society where each individual enjoys equal opportunities, discrimination reduces to a minimum. That is, communism helps in minimizing the problem of discrimination against some groups of persons. It becomes easy for individuals to have the opportunity to succeed and have access to proper education. In this system, the minority groups have greater chances of minority groups in different facets of life.
In other words, every individual has similar opportunities to succeed in life. That is, the disabled and handicapped will not be behind. This is because communism helps to provide more opportunities for them to have a better and comfortable life.
2) Disadvantages of communism
Free market malfunctioning
Under the communist economy, the free market can no longer function or run properly. In the free-market economy, the forces of supply and demand are the major factors that determine the price level of products and services. This is not the case in the communist economy. Here, the government has full control over prices. Also, it is the government that determines the price to charge for a product and service.
Communism goes after general/social welfare. But when the forces of the free market stop working, it has a tendency of causing serious economic welfare loss. This effect usually manifests in the long run and thereby lowering the efficiency of a country’s production processes.
Under communism, the government is likely to be inefficient in spending funds. This means that the government will always spend in a wasteful manner. The government is bound to spend on projects that are unnecessary and this can amount to the misplacement of priority. Also, government projects are usually expensive when we compare them to private companies. By implication, the government has a higher chance of spending the taxpayers’ money in an inefficient manner.
When communism emerges in a nation, it can amount to sovereign defaults. This is not sustainable in the long run. In this case, too many frictions will result. The state has a higher chance of running into bankruptcy in the future if the government keeps spending inefficiently.
Communist countries usually face currency problems, their currencies are usually weak and unstable. Because of this, institutional investors lose their trust in such currencies. Instead, they sell these currencies rather than buying them. The local population may also lose trust in their own currency. Because of the currency problems communist economies face, they try exchanging these currencies. The aim of this exchange is to protect themselves against currency depreciation.
Communism may deter international investors
Usually, it becomes very difficult for international investors to invest in communist economies. This is because private individuals have almost nothing, so their GDP is very low. Oftentimes, private corporations, sole proprietorships, partnerships, and private limited liability companies are not in existence. So, there is almost no place for foreign investors to invest because such investments may yield nothing, or fail totally. These investors face fears with regard to the deprivation of private property for public use. The effect of this is that there will be a low rate of overall private investment. Certainly, no one wants to lose his wealth. Problems usually arise in this case. It becomes very difficult for a communist government to run important projects due to poor financial opportunities.
Difficulties in wealth accumulation
Under a communist economy, it is almost impossible to accumulate wealth since the system does not permit private ownership of assets. Working for long hours is not an added advantage to the employee as this will yield no special reward. Individuals pay less attention to saving due to the fact that they cannot acquire or accumulate wealth. There will be biased consumption decisions as a result of this. In the long run, this has the tendency of hurting the overall welfare of a country.
Lack of incentives
People lack the motivation to work hard since there is no room for individual wealth accumulation. People lose their zeal towards putting in their best. The long-run effect of this is a massive loss of working power. No single person will want to invest his full potential to work hard since there is no reward for putting in the extra effort.
Confinement of overall freedom
Due to the nature of communism, there is great confinement of individual freedom. In general terms, the freedom of choice of occupation is absent as the state determines job vacancies for the masses. By implication, the system forces people to work in certain places in a lifetime. Even if individuals are not interested in the jobs, t6hey must work in those areas. Another area of the confinement of freedom is the freedom of speech. The government may people for expressing their opinion especially when it does not go with the decisions of the government.
It is difficult for people to achieve self-fulfillment under a communist economy because they seldom do things they desire to do. Under communism, the rule is that everyone should only do things that will benefit the community and the government. This point clarifies that the act of pursuing individual interests contradicts the goals of the community. There are many deprivations of self-interest under this system.
A narrow view of the world
Communism causes the people to have a narrow perspective about life and the world at large. The current political regime configures the behavior of people in a specific manner. Here, no individual has the right to question decisions. Children grow in a specific doctrine that causes them to reject other lifestyles. In essence, the system builds myopic thoughts in the minds of individuals.
Poor international trade relationships
Because of the nature of communism, other countries lose interest in trading with communist countries. This is a result of the conflicts that exist in values and lack of trust in such administrations. The poor international trade relationships are also traceable to currency problems. Such economies are bound to suffer due to a lack of international trade and this reduces a country’s economic power.
Due to many restrictions, individuals make efforts to migrate to other countries thereby leading to a significant decrease in a country. There will also be a corresponding decrease in a country’s overall gross domestic product and this will amount to other economic challenges.
Restriction of information flow exists because the government has full control over the media channels. The press only releases information that will sustain the current government administration. In essence, any information that will be harmful to the political leaders will not be made available to the general public. Withholding information will cause people not to have a clear understanding of what life generally is all about. This however polarizes the people’s perspective about the world.
General public manipulation
It becomes easier for the government to manipulate the people when information flow is biased. The government suggests certain actions to individuals through the mass media. Usually, these actions do not favor the masses, it only favors the government administration. The government sustains its current regime by manipulating people.
In a communist economy, the government has control over everything and this will amount to excessive levels of power. In turn, this amounts to dictatorship since the administration can do what it wishes to. When a government possesses too much power, it will affect the economy negatively. Because the authority feels they have the right to do anything, they do whatever they wish to. When there is an excessive level of power, there will be unfair political outcomes in the long run.
Slow technological progress
Communism tends to slow down the technological progress of a country. Oftentimes, private investment is absent because there is no room for expansion. There is a great limitation on the overall technology since financial capacity is low. Countries that operate under this system lose their competitive edge over capitalist countries. This contributes to weakening the economic position of a country.
What is democracy?
When we talk about democracy, it is a form of government in which the entire citizens or eligible ones have the right to vote directly on issues or elect a representative to make these decisions on their behalf. In other words, it is a structure of government in which the laws come from the people other than the military or the state. Democracy can also be defined as the government of the people, for the people, and by the people.
Due to the fact that it is not possible for everyone to have a hand simultaneously in running a country, the people vote for a representative that will act on their behalf. For instance, the people elect members of the house of representatives and councilors.
Almost everyone believes that democracy is the best system of government available since everyone has the freedom to have a voice and air out their views. A democratic government is not dictatorial and coercive in nature, everyone can speak out and air out their own opinions. Also, a democratic government highly forbids the abuse of human rights.
Democracy pros and cons
1) Advantages of democracy
Personal involvement with the government
Under democracy, the people have the opportunity to get themselves personally involved with their government. Individuals can decide their fate as this form of government is under the control of the people. In other words, the people have the right to decide how to vote in the manner in which their morality dictates. Usually, voters can choose to vote if that will be the most favorable way of expressing their opinions. Every vote is an opportunity to express personal opinions. Even if this expression does not land in the majority, there is an agreement that exists in a democratic government that a vote counts or stands except if there is a clear moral objection to the outcome.
Minimizes the issue of exploitation
Democracy works towards reducing the issue of exploitation because individuals gain votes into powerful positions. In this system, there is an equal distribution of authorities. Checks and balances exist to ensure that no single individual gains supremacy over the legislature. This form of government hinders the elected officials from ignoring the general needs of the people to satisfy their selfish desires. Democracy helps the elected to represent the needs of each community. The aim is for everyone to receive an equal opportunity to pursue their goals.
Democracy encourages equality in a positive manner and this vote gives each vote an equal amount of weight during an election. Everyone has the opportunity to cast votes without any judgment especially while registering for this process. Regardless of economic and social status, everyone has an opinion. Every YES or NO counts as one whether you are rich or poor, have an asset or not.
Faster economic growth
A democratic government tends to grow an economy faster than other forms of government. There is freedom as democracy provides the general public with the opportunity to pursue the result they want. There are legal barriers in place to prevent one person from hurting another even as freedom is in existence. This system of government influences everyone’s work positively in the case of fruitfulness especially as everyone employs their strength. The freedom to seek employment opportunities, schools, or residence exists under this system. As a result, a country’s gross domestic product that features constitutional arrangement is always greater.
Greater levels of consistency
Unlike other forms of government, democracy possesses a high level of consistency and stability. There is more unity in existence in governing processes since individuals have the right to vote on issues. Usually, this arrangement takes different forms but the end result remains the same. Every eligible citizen is free to express his views at the polling unit by casting votes. By implication, every community has the right to continually pursue specific results that they perceive to be helpful. They are also free to switch directions and try something new. Democratic forms of government have a way of bringing people together such that it becomes helpful to virtually everyone.
A stronger level of patriotism
With democracy, people can fight for the things they desire to have in life. This means that every individual pursues their dreams as they work towards molding society in a vision that meets up to their expectations. In some cases, there are ideas that may counter the desires of the majority or morality. It is still possible to express these desires as long as these efforts do not hurt other people. Because of this, there is a greater level of loyalty and patriotism in a democracy. Even when there are disagreements in a community, there is still common ground to fall back to in the course of forming their identity. Everyone has their own way of contribution which the democratic governing structure celebrates unlike other forms of government that dictate these choices.
Less armed conflicts
The tendency of engaging in armed conflicts is less in a democratic government. Fewer cases of violent rebellion exist as decisions have to go through the legislature or the people. This reduces the likelihood of war. Coup attempt tends to be fewer. Also, smooth transmission of power, as well as legitimacy, is in place. In the change of leaders, the checks and balances in this format ease the production of smooth transmission when power changes hands. There are fewer arguments with regard to who replaces a position. This is because the people direct each job or someone who won an election fills that position.
One advantage of democracy is that it favors political education. It serves as a training ground for citizens. During an election, political parties make proposals of their programs and policies that favor their candidates. They do this through the mass media, demonstrations, and speeches. They do this to win the favor of the public. Through these activities, political consciousness is imparted amongst the people.
It promotes change
A democratic government promotes change in government without going through any form of violence. It becomes easier for people to feel great and have a good sense of involvement and participation.
2) Disadvantages of democracy
Dependent upon the will of the majority
History has stated that the will of the majority is usually an unethical or immoral position to be taken. The system tends to be unfair to the minority because the majority carries the vote. In other words, the system tends to make the majority better off while the minority remains worse off. This is because the system does not seem to grant their desires.
Under democracy, the minority groups feel that their votes do not really count. In essence, if an individual find himself outside the will of the majority, it will make his vote look irrelevant, meaning that the vote does not count for something.
The cost of democracy unrealized
A democratic government is the least cost-efficient in the present day. That is, there is a very high cost involved that many people have not realized its existence. The running of the system requires a lot of time and finances especially in conducting elections. Aside from state and national elections, local and regional elections cost a lot. Well, it is important for people to have power in their voice, the government uses the taxes they pay for this opportunity.
More time to implement changes
A democratic government usually requires more time to implement changes, unlike a centralized government that makes a degree, declarations, regulations, or responses, and these are usually absent in a democratic government. Here, the processes of implementing changes may slow down to an extent of taking so many years for these changes to take effect. This happens because it is necessary for every referendum to go to the voters. Every single decision will have to go through a review potentially and this can give rise gives rise to a level of uncertainty.
In this system, it is not a usual thing for elections to involve the thoughts and opinions of every individual based on what they want themselves. Instead of considering what will be useful and helpful for the overall society, individual votes may take the other side. This process has a way of encouraging people to place their needs above that of others. Casting votes on the basis of personal interests is something that will always create a sense of discontent in society. This is due to the feeling that the majority is suppressing the minority. Based on these considerations, there has to be an emphasis on the protection of the rights of the minority or those who find themselves on the outside.
The risk of conflict of interest
There is always a risk of a conflict of interests within the government. So many people work towards retaining what they have after they have earned or acquired them. A democratic government tends to put structures in place that will limit the impact of one person on society although this was not the initial case.
The risk of empty promises
If democracy is established in a representative form, it does not require the same level of accountability. Every politician looks towards the goal of receiving the highest number of votes. Usually, once this person gets into office, he faces fewer levels of control. In turn, this increases the tendency not accurately representing what his community desires. The only remedy for this is to elect a different person for the next tenure which may take time, probably after the damage has taken place. Usually, those contesting for an election do come up with promises that will convince the people to elect them into power, but when they get up there, they will do otherwise.
By implication, empty promises are common in a democratic government. In this case, there is an incentive to offer everything without the requirement to fulfill those promises made. In many instances, there are more lies than truth in regular conversations regarding the occurring government.
Paralysis of the system
Usually, there exists no incentive for people to work together especially when another election tends to change the future outcome. In cases where the incentive to work together is absent, then partisan politics will become a common practice of the government. Usually, the situation is bad in the two-party systems and multi-party systems. This disadvantage is usually present in all democratic forms of government. The bottom line is that gridlock is frequently recurrent in democratic structures.
Voters must accept an entire mandate for single issues
Unless a direct democratic structure is in place, voters will always face compulsion to accept an entire manifesto to carry out votes over issues that are critical to their needs. Instead of having a candidate who will truly represent them, they may have no other choice than to pick the platform that is closest to their stance. For example, if all the candidates of a particular office are seen to be incompetent, the people will have no choice but to look for the one closest to their stance, even if the candidate is not good enough. Also, in some countries, primary elections may rule out the candidates that seem to be competent enough while leaving those that the people will not want want to have as their representatives.
Communism vs democracy
Communism vs democracy similarities
The communism vs democracy similarities explains the similarities that exist between the two concepts. Some of the areas in which they have similar characteristics include;
- Criticize capitalism
- Disapproval of exploitation
- Political system
- Effects on the economy
- Social welfare
One similarity that exists between communism and democracy is that they view capitalism as a form of socio-political governing that is historically outdated and utterly immoral.
Disapproval of exploitation
Both communism and democracy agree to the fact that the practice of capitalists is inappropriate thereby subjecting consumers and employees to economic exploitation. The capitalist practice establishes a situation whereby employees get ill-treatment thereby causing them to have a sensation of societal alienation. This, in turn, hinders laborers from being able to attain happiness irrespective of their professional duties. Both economic and political systems regard this act as inappropriate.
Communism and democracy are both political systems. The difference between them is that communism is both an economic system and a political system.
The two systems agree with the concept of equality and kick against discrimination.
Effects on an economy
Both communism and democracy have effects on a country’s economy. These effects can either be positive or negative based on their advantages and disadvantages. That is, it can either make or mar an economy.
The two political and social ideologies agree with the concept of social welfare. That is, they place societal needs above individual needs.
Differences between communism and democracy
Communism vs democracy comparison chart
The communism vs democracy chart summarizes the differences that exist between communism and democracy. These differences are further explained under the table.
Basis for comparison
Each person contributes according to his ability and receives according to his needs.
Considers the community of people to hold power over how to govern them.
Stateless and classless, the people directly govern it.
Centralized government, centrally planned economy, dictatorial in nature, common ownership of means of production, equality regardless of gender, international focus, undemocratic with a one-party system.
Free elections, that is the right to vote, express an opinion, or participate in a decision process, and majority rule.
Eliminates all class distinctions.
Has the tendency of resisting class distinctions.
A social and economic system whereby the entire community in a state owns and controls all means of production. The share of each individual is greatly dependent on their abilities as well as their needs.
A system of government in which the entire citizens or eligible ones have the right or franchise to carry out direct votes on issues or elect someone to make these decisions on their behalf
Abolished and rejected
Either the rulers of the state or the collective vote make economic and political decisions for the masses.
Individuals can decide for themselves except in cases whereby majority fractions limit individuals.
Communal ownership of means of production and negates the concept of private property ownership
Tend to be free-market economies. Voters or their elected representatives determine the policies governing economies.
Theoretically, the system considers every member to be equal to one another.
All members/citizens theoretically have an equal say with equal treatment. The majority usually has an edge over the minority.
Way of Change
A communist state is an agent of change, not any market or desire on consumers’ part. Government change can either be swifts or slow which depends on ideological changes or even whim.
View of war
Good for the economy
Depending on the majority opinion, but usually inferior as it causes economic and political instability.
Key differences between communism and democracy
Under communism, each person contributes according to his ability and receives according to his needs. The people have free access to the articles of consumption which the advances in technology have made possible thereby facilitating abundance. Democracy on the other hand considers the community of people to hold power over how to govern them. Because of this, the people see kings and tyrants as threats to the rights of the people. Because of this, all eligible citizens have an equal say in decision-making.
A communist nation is stateless and classless it is the people who directly govern it. Practically, this achievement has never been in place and the system is totalitarian in nature. Communism has a central party that governs society. Democracy, as the name implies is democratic in nature. It is important to note that this does not mean a reference to a democratic party.
Communism is a centralized government, centrally planned economy, dictatorial in nature, common ownership of means of production, equality regardless of gender, international focus, undemocratic with a one-party system. On the other hand, free elections exist under the democratic government, that is the right to vote, express an opinion, or participate in a decision process, and majority rule. Decisions take place based on the votes of the majority, this seems to limit the rights of the minority.
The communist system eliminates all class distinctions. This is a society where everyone is both the owner of means of production and their own employees. A democratic government is meant to resist every class separation, both economically and politically. Due to the presence of a capitalist economy, class distinctions can become so pronounced though this varies from state to state.
Communism is a social and economic system whereby the entire community in a state owns and controls all means of production. The share of each individual is greatly dependent on their abilities as well as their needs. Democracy on the other hand is a system of government in which the entire citizens or eligible ones have the right or franchise to carry out direct votes on issues or elect someone to make these decisions on their behalf
Communism totally abolishes the ownership of private property, that is the negation of the concept of private property thereby replacing it with the concept of commons and ownership (communal ownership). Democracy generally permits the ownership of private property. There is a high tendency of majority friction placing certain limits on property rights.
A communist society rejects and abolishes all religion and metaphysics. According to Engels and Lenin, religion was a drug or spiritual booze and must be combated. They agreed that atheism put into practice meant a “forcible overthrow of all existing social conditions. Under democracy, the freedom of religion is generally permitted. Also, majority friction has the tendency of limiting religious freedom for a minority fraction.
Under communism, either the rulers of the state or the collective vote make economic and political decisions for the masses. Practically, the rulers use rallies, force, propaganda, etc. to control the masses. Under democracy, individuals can decide for themselves except in cases whereby majority fractions limit individuals.
Under communism, communal ownership of means of production and negates the concept of private property ownership. The central planners organize production to make direct provision for human needs without making use of money. This economic system is based on the condition of material abundance. On the other hand, democracy tends to be free-market economies. Voters or their elected representatives determine the policies governing economies.
In theory, communism considers all members of the state are considered equal to one another. On the other hand, democracy gives all citizens an equal say, therefore, are treated equally. However, oftentimes, this gives the single ruler of the majority an edge over the minority.
Way of change
A communist state is an agent of change, not any market or desire on consumers’ part. Government change can either be swifts or slow which depends on ideological changes or even whim. On the other hand, democracy effects change through the casting of votes.
View of war
Communists have a belief that war is good for the economy, stating that it is a normal thing that leads to the healthy functioning of an economy. On the other hand, democracy usually views war as inferior and obsolete as it causes economic and political instability. In some cases, the view of war under the democratic government depends on the opinion of the majority.
Frequently asked questions
How does a communist system of government differ from a democracy?
Communism is an economic and social system that is stateless and classless in nature while democracy is not stateless. Also, communism is an economic system as well as a political system, democracy is not an economic system. While communism eliminates all forms of class distinctions, democracy is meant to resist class distinctions. Communism views war as a good thing for the economy while democracy views it as obsolete and inferior. Another difference is that communism abolishes the concept of private property ownership while democracy permits it. Under democracy, change takes place through elections while it does not happen that way under communism. Communism restricts the right to express views and opinions but these rights are present under democracy. While communism abolishes the concept of religion, democracy permits it.
What is the meaning of communist government?
A communist government or communism is a social and economic system whereby the entire community in a state owns and controls all means of production. The share of each individual is greatly dependent on their abilities as well as their needs.
What is the difference between communism and capitalism?
While the principle of capitalism is based on individual rights, the principle of communism is based on community rights. Communism is totalitarian in nature while capitalism is democratic. There is a high level of government control and interference under communism. Under capitalism, government interference is minimal. Under capitalism works for himself to acquire wealth. On the other hand, under communism, the distribution of wealth is based on the people’s needs and abilities. Factors of production are privately owned under capitalism while they are state-owned under communism. Competition is absent under communism while it is present under capitalism. The freedom of choice is present under capitalism, that is the choice of occupation and product brands. This is absent under communism.
What’s the difference between communism and a dictatorship?
Dictatorship is a system whereby a single person rules the nation while in communism, power is not in the hands of a single individual. Under communism, it is the community that governs everything while under dictatorship, it is the dictator who governs everything. Meeting societal needs is a primary goal under communism while this is secondary under dictatorship. The community is the most powerful under communism while the dictator is the most powerful under dictatorship. Communism believes in common ownership of assets while dictatorship believes in individual ownership. The communist society regards everyone as equal while in a dictatorship, there are is no equality. There is an equal share of profit in a communist society but under dictatorship, the accumulation of profit is in only one person.
Chyou is a published author who focuses on the field of international business. After an established career facilitating mergers and acquisitions for medium to large corporations, Chyou turned to writing to help students better understand international business concepts.