Businesses would differ extremely due to the fact that communism and capitalism are very different forms of government. These five essential parts (Product creation, Marketing, Sales, Finance, and Delivery of your Product) are the key factors in business and these two markets cause these factors to differentiate between the two types of markets. These two environments caused businesses to re evaluate their ways of marketing and getting consumers to get the products. Capitalism is the most fluent system of marketing, but communism has some valid ways of marketing as well.
1.0 Communism Communism is an economic system where, in theory, ownership of everything (e.g. goods, industrial products, businesses, farm produce, etc.) is collectively by the Government and the payment of income is only based one’s need. In communism, individuals have little say or on say at all on what to produce, not even owning anything since ownership is only by the Government. Communism is a socio-economic structure based on classless, stateless society where the means of production are on common ownership. Therefore, communism is the idea of free society where there is no divisions, humanity is not oppressed, no need for Government or countries. A citizen earns according to their needs and gives according to their abilities to do so.
All in all, Adam Smith, Andrew Carnegie, and Karl Marx all had their perspectives and opinions on capitalism. Each person had their views on a “perfect” and ideal society and each person had great intentions. As history played out, Marx’s communist theory did not exactly go as he thought it would pan out. Many different states had their attempts at communism, but things were not all that successful with these attempts. To this day, communist states still exist in some nations, but it is usually looked down upon by the world. On the other hand, free-market capitalist systems are still running freely, much to the dismay of the poor.
In a Capitalist government, citizens have the right to vote for a president, along with having the right to choose a state government. People also have the right to freedom of speech; for instance, they can choose to protest against the government or go on a strike when it comes to their job if the company was to be unjust. In this class of government, means of production of goods or services can be privately owned and operated for a profit. Capitalism has a lot of advantages over socialism; one of them is more
Although pure capitalism and pure socialism don’t exist in the real world, those two economic systems are on complete opposite sides of the spectrum. The basic philosophy of capitalism is that capital is owned, operated, and traded for generating profits for private owners or shareholders. There’s a particular emphasis put on individual profit rather than society as a whole; socialism is essentially the opposite. According to socialism, each person must contribute something to society according to their ability, and profit is distributed among the society or workforce to complement individual wages/salaries.
Capitalistic and communist economic systems have been in the forefront and have been popular and spoken about in recent times. In our world today, we have countries that are either pro capitalistic or procommunist. In this paper we are going to look at the ideas of Milton Friedman, Hernando Desoto, and MacGregor, whom all have different theories. We will take look at two countries, one being the United States, and the other being China. Currently both countries are competition to reach the number one spot in GDP and china has recently been making it to the number #1 spot. Both countries their on ideas of what is best for the people in both eliminating poverty and promoting jobs domestically, but although both countries have similar goals, the major differences lay in the ways the countries regulate economic policy. Would a free market system prevail in making the people well off, or would government institutions set to protect those and create a safety net be better off in boosting the well being of its citizens. Will China’s hybrid system succeed in maintaining the communist party’s dictatorship and rule; archive U.S. levels of wealth?
In terms of production: Capitalism has been proven to be the most effective economic system, but only second to moral economy. Ayn Rand has shown that in “Atlas shrugged” that by its very nature, capitalism is freedom: the freedom for any to do what he wants to do with his mind and effort, and freedom to live.
In the book Power and Prosperity, by Mancur Olson, it talks about the economic and social progression toward a stronger democracy. Throughout the book, Olson explains the differences and flaws of communist and capitalist economies. During the Cold War socialism was not really looked upon as a solution, due to the fact that Soviet Russia, or the USSR, and the United States were battling to show the globe what system created the greatest achievements. So, after the United States came out victorious and showed capitalism’s capability to achieve, governments, people, and general economies started to transition to capitalism. He explains that the reason communism failed to win the Cold War was due to the fact that Soviet Russia was running on a concept of communism while running on a foundation of a market economy which lead to the eventual collapse of growth and failure of sustainability. Although Professor Olson points out that perpetual subsidies for enterprise and failing businesses diminish incentive to use new resources and strategies in order to stay proactive, he believes that a controlled economy would work if running on a completely consistent foundation.
Sociologist Karl Marx (who worked mostly with macro theories) was always credited with the creation of communism, but the fact is that it was being practiced in many countries such as the Soviet Union with little influence from him. He did have promoting theories about the concept, but none of which were used the way in which he predicted they would be. All the while, many seem to ignore the work and studies he did on capitalism as well. A very important theory he devised on capitalism is one that has been built on by many while others have built theories in opposition. This theory is defining capitalism as a system of economy that is supported by capitalist owning the necessities for the proletariats, or workers, to work with in order to earn the
Communism and Socialism are different economic views that were adopted by two very different countries. Adopted first by Russia, communism teaches “the complete merging of the individual in the society to which he belongs. There is no private ownership whatever. (xxx)” On the other hand socialism (first adopted in France) is the belief the economy should be run via a collective ownership of all goods by all the people. However, despite their many differences both had in terms of how to the economy should be run, both also share multiple similarities as well. There are many similarities and differences between socialism and communism include the following: philosophies, centralized ownership, national and global impact, Karl Marx, political