I need to Compare and Contrast the economic theory of Communism to Capitalism
These sites should help you.
http://www.angelfire.com/il/coldwar/sld003.html
http://dspace.dial.pipex.com/town/street/pl38/sect2.htm
http://en.wikipedia.org/wiki/Capitalism
http://en.wikipedia.org/wiki/Communism
To compare and contrast the economic theory of Communism and Capitalism, you can follow these steps:
1. Understand the basic principles of Communism:
- Communism advocates for the abolition of a class-based society, promoting a society where all property is publicly owned.
- The means of production, such as factories and land, are collectively controlled and managed by the government on behalf of the people.
- The goal is to achieve a classless society where wealth and resources are equally distributed.
2. Understand the basic principles of Capitalism:
- Capitalism supports private ownership of the means of production and allows for individual economic freedom.
- The market plays a significant role in determining prices, production, and distribution of goods and services.
- Profits are generated by private individuals or companies, encouraging competition and private enterprise.
3. Analyze the key similarities between Communism and Capitalism:
- Both systems aim to allocate resources and satisfy people's needs, although they use different methods.
- Each theory provides an answer to the question of how resources and wealth should be distributed in society.
4. Examine the key differences between Communism and Capitalism:
- Property Ownership: Communism advocates for public ownership of resources, while Capitalism allows for private ownership.
- Government Control: Communism requires extensive government control over the means of production, while Capitalism promotes limited government intervention.
- Wealth Distribution: Communism seeks to distribute wealth equally among all individuals, whereas Capitalism is driven by the pursuit of individual profit and allows for income inequality.
- Role of Market: In Communism, the market is either heavily regulated or non-existent, whereas Capitalism relies on market forces to determine prices, production, and distribution.
5. Consider the advantages and disadvantages of each theory:
- Communism can strive to achieve an egalitarian society and reduce income inequality, but it may limit individual freedoms and hinder innovation.
- Capitalism can create incentives for entrepreneurship and innovation, but it may lead to income inequality and social stratification.
By following these steps, you will have a better understanding of the economic theories of Communism and Capitalism, and can effectively compare and contrast their key principles, similarities, and differences.