Communism and Capitalism

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Communism is a social structure and political ideology in which property is commonly controlled. Communism (written with a capital C) is a modern political movement that aims to overthrow capitalism via revolution to create a classless society where all goods are publicly owned. Karl Marx posited that communism would be the final stage in human society , which would be achieved through a proletarian revolution and only becoming possible only after a socialist stage develops the productive forces, leading to a superabundance of goods and services. "Pure communism" in the Marxian sense refers to a classless, stateless and oppression-free society where decisions on what to produce and what policies to pursue are made democratically , allowing every member of society to participate in the decision-making process in both the political and economic spheres of life. In modern usage, communism is often used to refer to Bolshevism or Marxism-Leninism and the policies of the various communist states which had government ownership of all the means of production and centrally planned economies . Communist regimes have historically been authoritarian, repressive, and coercive governments concerned primarily with preserving their own power. As a political ideology, communism is usually considered to be a branch of socialism ; a broad group of economic and political philosophies that draw on the various political and intellectual movements with origins in the work of theorists of the Industrial Revolution and the French Revolution . Communism attempts to offer an alternative to the problems with the capitalist market economy and the legacy of imperialism and nationalism . Marx states that the only way to solve these problems is for the working class (proletariat), who according to Marx are the main producers of wealth in society and are exploited by the Capitalist- class (bourgeoisie ), to replace the bourgeoisie as the ruling class in order to establish a free society , without class or racial divisions. [1] The dominant forms of communism, such as Leninism , Stalinism , Maoism and Trotskyism are based on Marxism , but non-Marxist versions of communism (such as Christian communism and anarcho-communism ) also exist. Karl Marx never provided a detailed description as to how communism would function as an economic system, but it is understood that a communist economy would consist of common ownership of the means of production, culminating in the negation of the concept of private ownership of capital, which referred to the means of production in Marxian terminology. In the schema of historical materialism , communism is the idea of a free society with no division or alienation, where mankind is free from oppression and scarcity. A communist society would have no governments, countries, or class divisions. In Marxist theory , the dictatorship of the proletariat is the intermediate system between capitalism and communism, when the government is in the process of changing the means of ownership from privatism , to collective ownership. In political science , the term "communism" is sometimes used to refer to communist states , a form of government in which the state operates under a one-party system and declares allegiance to Marxism-Leninism or a derivative thereof. What is communism? What are the advantages/disadvantages of communism? 1. a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. 2. (often initial capital letter) a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self- perpetuating political party. 3. (initial capital letter) the principles and practices of the Communist party. 4. communalism. Basically it's what the democrats in America wants. Advantage : *Free government service to you. *Communism is when all people of the society work for the society, and not for themselves. Everyperson, in essense, fills a billet that is designed for the good of the whole. *Benefits, in pure communism, not the monstrosity that the USSR tried to pull off, are that everyone has food on their plate and a place to live. *Communism is the highest and perfect stage of society. In communism there will not be government and any form of social structure. Every one works according to his ability and gets according to his needs. This ideal situation happens because the consciousness of human beings will be very high and work towards the benefits of all unlike the present greedy society. Every thing in communism is advantage and there will not be any disadvantage. Disadvantage: *Downgrade in types of services and NO choice. *The disadvantages, and realilty, people are not equivically rewarded for the job they perform, there is no incentive to better yourself. A doctor would make the same salary as a

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Michelle Anne Tayoba

Transcript of Communism and Capitalism

Page 1: Communism and Capitalism

Communism is a social structure and political ideology in which property is commonly controlled. Communism (written with a capital C) is a modern political movement that aims to overthrow capitalism via revolution to create a classless society where all goods are publicly owned. Karl Marx posited that communism would be the final stage in human society, which would be achieved through a proletarian revolution and only becoming possible only after a socialist stage develops the productive forces, leading to a superabundance of goods and services.

"Pure communism" in the Marxian sense refers to a classless, stateless and oppression-free society where decisions on what to produce and what policies to pursue are made democratically, allowing every member of society to participate in the decision-making process in both the political and economic spheres of life. In modern usage, communism is often used to refer to Bolshevism or Marxism-Leninism and the policies of the various communist states which had government ownership of all the means of production and centrally planned economies. Communist regimes have historically been authoritarian, repressive, and coercive governments concerned primarily with preserving their own power.

As a political ideology, communism is usually considered to be a branch of socialism; a broad group of economic and political philosophies that draw on the various political and intellectual movements with origins in the work of theorists of the Industrial Revolution and the French Revolution. Communism attempts to offer an alternative to the problems with the capitalist market economy and the legacy of imperialism and nationalism.

Marx states that the only way to solve these problems is for the working class (proletariat), who according to Marx are the main producers of wealth in society and are exploited by the Capitalist-class (bourgeoisie), to replace the bourgeoisie as the ruling class in order to establish a free society, without class or racial divisions.[1] The dominant forms of communism, such as Leninism, Stalinism, Maoism and Trotskyism are based on Marxism, but non-Marxist versions of communism (such as Christian communism and anarcho-communism) also exist.

Karl Marx never provided a detailed description as to how communism would function as an economic system, but it is understood that a communist economy would consist of common ownership of the means of production, culminating in the negation of the concept of private ownership of capital, which referred to the means of production in Marxian terminology.

In the schema of historical materialism, communism is the idea of a free society with no division or alienation, where mankind is free from oppression and scarcity. A communist society would have no governments, countries, or class divisions. In Marxist theory, the dictatorship of the proletariat is the intermediate system between capitalism and communism, when the government is in the process of changing the means of ownership from privatism, to collective ownership. In political science, the term "communism" is sometimes used to refer to communist states, a form of government in which the state operates under a one-party system and declares allegiance to Marxism-Leninism or a derivative thereof.

What is communism? What are the advantages/disadvantages of communism?

1. a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. 2. (often initial capital letter) a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party. 3. (initial capital letter) the principles and practices of the Communist party. 4. communalism.

Basically it's what the democrats in America wants.

Advantage:*Free government service to you. *Communism is when all people of the society work for the society, and not for themselves. Everyperson, in essense, fills a billet that is designed for the good of the whole. *Benefits, in pure communism, not the monstrosity that the USSR tried to pull off, are that everyone has food on their plate and a place to live. *Communism is the highest and perfect stage of society. In communism there will not be government and any form of social structure. Every one works according to his ability and gets according to his needs. This ideal situation happens because the consciousness of human beings will be very high and work towards the benefits of all unlike the present greedy society. Every thing in communism is advantage and there will not be any disadvantage.

Disadvantage:*Downgrade in types of services and NO choice. *The disadvantages, and realilty, people are not equivically rewarded for the job they perform, there is no incentive to better yourself. A doctor would make the same salary as a store clerk. *Communism only works for social insects like ants and bees, for humans, socialism is probably the best way to go. *One disadvantage is the government has too much control over your personal lives. ``````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````

*This is to add to GSqueeze...As a disclaimer I am not a supporter of communism, but got into a theoretical argument w/ a friend who is (more or less).

You said that a problem of communism is that people are not proportionately rewarded for the job they perform (I agree) - my friend bit my head off and spewed some theory from up on her high horse of enlightenment...her logic was:1) People are all equal (I think everyone can agree with that)2) The individual fulfills the job he/she is assigned and the output of that individual's time/energy benefits society 3) A doctor holds the same level of importance b/c society (in communism) won't keep running if all the job inputs aren't supplied with workers4) Since the function of each worker is equally important to the society, each worker will be rewarded equally.

So, in this type of theory the store clerk's function is just as important as a brain surgeon's.

I think many people can agree that, yes, they both serve important services. However, this logic doesn't acknowledge the fact that there are very few people who could make it through med school no matter how motivated they are (cost of educ not being a factor). On the other hand, nearly any person - young, old, educ level, etc. could fulfill the role of the clerk. According to my friend the abilities of a doctor are 100% equatable to the abiltities of someone who works a register (been there, done that, it stinks).

Just thought I'd introduce some interesting concepts, concepts I reject but are fun to think about nevertheless.

*basically.. communism would work ONLY if Jesus were president! *its where the government has control over the country without the peoples choices so its pretty much the opposite of countries the U.S. and Canada *i don't know they say it helps poor people but then again it can ruin the economy of a country and make people lazy

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*There are NO advantages of communism. It is anti-liberty. *communism is when one person has a total control, over a state or a country. Under a communist country the communist leader has total control, over money making choices.. it has power over the army and all businesses. also under communist control., the communist leader cannot be easy overpower or overthrown

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Capitalism is an economic and social system in which capital, the non-labor factors of production (also known as the means of production), is privately controlled. labor, goods and capital are traded in markets; and profits distributed to owners or invested in technologies and industries.

There is no consensus on capitalism, nor how it should be used as an analytical category. There are a variety of historical cases over which it is applied, varying in time, geography, politics and culture. Economists, political economists and historians have taken different perspectives on the analysis of capitalism. Scholars in the social sciences, including historians, economic sociologists, economists, anthropologists and philosophers have debated over how to define capitalism, however there is little controversy that private ownership of the means of production, creation of goods or services for profit in a market, and prices and wages are elements of capitalism.

Economists usually put emphasis on the market mechanism, degree of government control over markets (laissez faire), and property rights, while most political economists emphasize private property, power relations, wage labor, and class. There is a general agreement that capitalism encourages economic growth. The extent to which different markets are "free", as well as the rules determining what may and may not be private property, is a matter of politics and policy and many states have what are termed "mixed economies."

Capitalism as a system developed incrementally from the 16th century in Europe, although capitalist-like organizations existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages.Capitalism became dominant in the Western world following the demise of feudalism. Capitalism gradually spread throughout Europe, and in the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world.

What are the advantages and disadvantages of capitalism?

Advantage

*The advantages of capitalism are the government has limited control over business, which lets business compete. Capitalism lets people choose what kind of work they want to do and where they want to work. Capitalism lets people decide what they want to do with their money if they want to put it into a retirement account or in the stock market.

*The advantage is that it provides people an incentive to produce work and innovate, which benefits all of society. If everyone was paid the same amount of money, there would be little incentive to come up with new ideas, work harder, or put in the extra effort to produce higher quality products.

*Advantage: anyone with enough drive and a good idea can become rich since the class system is fluid allowing people to move around easily. (Think Jobs, Gates, and Ted Turner.)

Disadvantage

*But the disadvantages of Capitalism are barriers between people in terms of how much wealth they have or how much money they make. Another disadvantage of Capitalism is that government control is so limited that it lets a few businesses to dominate their industry and then they become able to make the rules for their industry.

*The disadvantage is not with capitalism itself, but with how it is implemented. Without adequate regulation to make sure that businesses do not destroy our environment, cheat the purchasers of their products, create shoddy and dangerous products, or cheat and abuse their employees, the owners of capital will become unfairly rich while the workers and consumers will suffer.

This is the situation today, and it is being made worse under the Bush regime. They want to abandon protecting our environment, limit liability for corporations who produce products that kill people, reclassify more workers as "exempt" from overtime laws, and drive down wages by outsourcing work to foreign countries that have even less regard for workers and the environment.

*Disadvantage: requires at least 5% unemployment to work properly to force people to perform menial labor and serve industry. (If you hate your job you can quit... but there will always be someone to take your place, you are a cog in the industrial machine.)

*Disadvantage: a materialistic society where success is defined by how much you can accumulate before you die. Compare what's important to most people in the US vs. other countries and you'll see what I mean.

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advantages are free enterprise, private ownership, people get to own their own property, everyone has a free opportunity to better themselves, a competitive market helps to keep cost lower for the consumer---i really can't think of disadvantages because i strongly believe in capitalism, however some people might say that it makes the rich richer and the poor poorer, however this is not a bad thing per se...when's the last time you saw a poor person starting a business and hiring somebody? How many poor people provide jobs? NONE--rich people employ the rest of everyone else and they *invest* their money unlike lower socioeconomic classes do, so we need the rich!

The rich get richer and the poor get poorer. Of course this must be prettied up so some where in your books it will speak about the most efficient allocation of scarce resources, the most competitive price in a free market, the accumulation of capitol to fund new business ventures, and the fair distribution of wealth. these are all bullony based on the precepts of a perfectly free market with no manipulation and perfect knowledge of the market by all participants. So the disadvantages are the accumulation of wealth and power by a small elite who use it to further their own interest over the interest of society as a whole.I doubt if this helps but it is a try. look back in the text, these general questions are usually covered in the chapter summaries or in the early part of the chapter.

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How capitalism works

Individuals

Individuals engage in the economy as consumers, labourers, and investors. For example, as consumers, individuals influence production patterns through their purchase decisions, as producers will change production to produce what consumers want to buy. As labourers, individuals may decide which jobs to prepare for and in which markets to look for work. As investors they decide how much of their income to save and how to invest their savings. These savings, which become investments, provide much of the money that businesses need to grow.

Businesses

Business firms decide what to produce and where this production should occur. They also purchase the right inputs (materials, labour, and capital). Businesses try to influence consumer purchase decisions through marketing and advertisement as well as the creation of new and improved products. What drives the capitalist economy is the constant search for profits (revenues minus expenses). This need for profits, known as the profit motive, ensures that companies produce the goods and services that consumers desire and are able to buy. In order to be successful, firms must sell a certain quantity of their products at a price high enough to yield a profit. A business may consequently lose money if sales fall too low or costs are incurred that are too high. The profit motive also encourages firms to operate efficiently by using their resources in the most productive manner. By using less materials, labour or capital, a firm can cut its production costs which can lead to increased profits. Commerce plays an important role in determining the growth rate of the capitalist economy. An economy grows when the total value of goods and services produced rises. This growth requires investment in infrastructure, capital and other resources necessary in production. In a capitalist nation, businesses decide when and how much they want to invest for these purposes.

The market

The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). This results in a market equilibrium, with a given quantity (Q) sold of the product. A rise in demand from D1 to D2 would result in an increase in price from P1 to P2 and an increase in output from Q1 to Q2.

The market is a term used by economists to describe a central exchange through which people are able to buy and sell goods and services. In a capitalist economy, the prices of goods and services are controlled mainly through supply and demand and competition. Supply is the amount of a good or service produced by a firm and available for sale. Demand is the amount that people are willing to buy at a specific price. Prices tend to rise when demand exceeds supply and fall when supply exceeds demand, so that the market is able to coordinate itself through pricing until a new equilibrium price and quantity is reached. Competition arises when many producers are trying to sell the same or similar kinds of products to the same buyers. Competition is important in capitalist economies because it leads to innovation and more reasonable prices as firms that charge lower prices or improve the quality of their production can take buyers away from its competitors. Furthermore, without competition, a monopoly or cartel may develop. A monopoly occurs when a firm supplies the total output in the market and means that the firm can limit output and raise prices because it has no fear of competition. A cartel is a group of firms that act together in a monopolistic manner to control output and raise prices. Many countries have competition laws that prohibit monopolies and cartels from forming. However, even though antimonopoly laws exist, large corporations can form near enterprises in some industries. Such firms can temporarily drop prices and accept losses to prevent competition from entering the market and then raise them again once the threat of entry is reduced. In many capitalist nations, public utilities (communications, gas, electricity, etc), are able to operate as a monopoly under government regulation due to high economies of scale.

Income

Income in a capitalist economy depends primarily on what skills are in demand and what skills are currently being supplied. People who have skills that are in scarce supply are worth a lot more in the market and can attract higher incomes. Competition among employers for workers and among workers for jobs, help determine wage rates. Firms need to pay high enough wages to attract the appropriate workers; however, when jobs are scarce workers may accept lower wages than when jobs are plentiful. Labour unions and the government also influence wages in capitalist nations. Unions act to represent labourers in negotiations with employers over such things as wage rates and acceptable working conditions. Most countries have an established minimum wage and other government agencies work to establish safety standards.

The government

In capitalist nations, the government allows for private property and individuals are allowed to work where they please. The government also generally permits firms to determine what wages they will pay and what prices they will charge for their products.

Under some versions of 'capitalism' the government also carries out a number of important economic functions. For instance, it issues money, supervises public utilities and enforces private contracts. Laws, such as policy competition, protect against competition and prohibit unfair business practices. Government agencies regulate the standards of service in many industries, such as airlines and broadcasting, as well as financing a wide range of programs. In addition, the government regulates the flow of capital and uses things such as the interest rate to control factors such as inflation and unemployment.

While in other versions, the governing body/bodies have no monopoly characteristics or legal exceptions.

How Communism Works

In a perfect world, everyone would have food and shelter, and a true utopian society would be devoid of sexism, racism and other forms of oppression. But for most of the world's population, this perfect society just isn't possible. Communism is one proposed solution to these problems.

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Most people know what communism is at its most basic level. Simply put, communism is the idea that everyone in a given society receives equal shares of the benefits derived from labor. Communism is designed to allow the poor to rise up and attain financial and social status equal to that of the middle-class landowners. In order for everyone to achieve equality, wealth is redistributed so that the members of the upper class are brought down to the same financial and social level as the middle class. Communism also requires that all means of production be controlled by the state. In other words, no one can own his or her own business or produce his or her own goods because the state owns everything.

According to the philosopher Frederick Engels' "Principles of Communism," the plan for ultimate financial and social equality is built on the principle that the system should spread around the world until all countries are on board [source: Engels]. This central goal has caused capitalist nations to keep their guards up, fearing that communist economic practices might spread to their countries.

Who are communists, and why do non-communist cultures consider them radical? Does communism work in practice? Next, we'll take a look at the father of communism.

The Nature of Communism

I make no pretenses: I dislike communism. It is a noble concept, but it is one that can't work without a radical change in the human psyche, and I'm not sure I'd want to live in a world where people were, effectively, labotimized.

My personal belief is that communism, as it exists in the world today, and capitalism are the same thing. True communism doesn't, and can't, exist.

True communism depends on human nature being basically altruistic. For communism to work, the members of the society either need to be altruistic enough to want to work for the benefit of their neighbors, or they need to be forward thinking enough to see that what benefits the whole benefits themselves. They must be very far-sighted indeed, because large-scale social benefits tend to be more abstract in nature, and more difficult to recognise. In contrast, when you get your paycheck, you can buy your VCR, and there it is on your table. You can directly relate your work to the results.

If human nature is basically egoistic, then true communism doesn't work. If people are basically selfish, then they won't work for the common good, and there will be a tendancy to freeload or otherwise take advantage of the system. For communism to work in that case, you would you need to make sure that everybody was doing their fair share. You would need a system of "points", to make sure everybody is doing their part. People then work to earn points, so that they can justify receiving their share -- or else they don't get their share, or they go to jail, or they're kicked out of the community, or some other fascist reaction.

Capitalism is also a value-point system, with the "points" being capital. Therefore, communism is just a form of capitalism, only worse. It is worse because people can't get ahead -- they can still starve, but they can't get rich. I call this commu-capitalism, and it's poster child is the former Soviet Republic.

It is my belief that people aren't bad, but they are by nature selfish. I believe that people, like all animals, are organisms with an genetically programmed desire to prosper, reproduce, and expand. What we see as altruism in people is an evolved sense of mutual benefit -- I help you, you help me, we both prosper. Altruism goes out the window when the benefit is one-way. We cast off dead weight, except in certain situations. Yes, we have a social welfare system in the United States, albeit a very inadequate and ill one. I personally believe that the only reason why we have one at all is as a safety net. It is instructional to notice that we have to give tax breaks to intice charity. It is always the middle class -- the ones closer to that poverty level and more at risk of slipping into the poverty level -- who most support charity for charity's sake.

Ok, so by now you're sure I've got this black view of the human soul, but I don't think I do. I like people, and I think they are basically good, when it suits them. I think it is unfair to expect people to be willing to throw away their own health for the health of others -- it is nice and noble when it happens, but it isn't human nature. And this is why communism, as a pure concept, can't work, and always devolves into capitalism.

The Nature of Capitalism

Capitalism depends on people being basically selfish. The whole point is that, if you work hard, you can get rich, ride to the top, and do whatever (more or less) you want.

As an aside, I'd like to point out that I find this entirely ironic. The point of life is to procreate, because those organisms who's entire being is given up to that drive to procreate are the one's who's genes have the most chance of surviving. However, birth rates in the most industrialized nations is far lower than those in third-world countries, and it isn't because we can't procreate -- it is because it we don't really want to. For some reason, when we get fat and wealthy, we lose the desire to spawn. I'm guessing it is nature's way of keeping humans hungry. The true advances come from the dissatisfied, not from the comfortable.

In any case, we've evolved a system whereby, theoretically, the hardest working reap the most rewards. Only, it doesn't quite work out that way, as you'll see.

Like commu-capitalism, capitalism has its downsides. In a communism, you get points only if you contribute. However, with capitalism, people can, and do, make significant amounts money without making any significant contribution to society whatsoever. In fact, a large portion of the American economy is devoted to doing just this -- making money off of the concept of money alone. "Interest" is a good example of this. Once an entity has a certain amount of money, it can survive off the interest without providing any constructive contribution to society. I phrase it this way, because at that point it doesn't matter whether the entity exists or not. It is capable of becoming a pure consumer, rather than a producer. Banks, therefore, are leeches on the process of capitalism. They don't truely contribute to the advancement of society.

Before I let you get too far into making any assumptions about my beliefs and values, I want to make it clear: I actually like banking. I think they're absolutely necessary, for the same reasons why a true communism would never work. I'd like to have a job working on banking software. Banking is the one, truely universal industry, where your skills are always in demand. For that matter, I'd love to have the opportunity to become a leech on society. I wouldn't actually exercise the ability, but it would be nice to not have to worry about how I'm going to fund my retirement. I'm also a dedicated capitalist. However, I do believe that there is no such thing as a purely good concept, and that any idea can be abused.

So, capitalism encourages non-contributing, support structure industry. Many organizations make fortunes simply by shifting money back and forth, from one place to another. While this is all very integral to our economy, it only exists as a side effect -- it doesn't actually produce anything.

Capitalism allows people to starve. However, unlike communism, capitalism also allows people to better themselves and their situation. Capitalism also allows people to ensure a better future for their offspring, should they have any, and to contribute surplus resources to organizations that they believe in. To quote the old hack, it may not be a perfect system, but it is the best one we have.

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