Overall, Capitalism and Communism are typically considered opposites from each other. They each are derived from different economic ideologies, and usually go head-to-head with clashing beliefs.
In a capitalist economy, people are free to make their own buying and selling decisions. Resources and businesses can be privately owned and there is high competition to attract consumers. This generally lowers prices as one tries to make itself more appealing or better than a rival company.In this system, people can advance through their own gains in a company. This provides a desire to keep growing and improving one's economic standing. However, there are limits, such as level of education/ schooling and type of work that affects how much a person can grow and earn. This, therefore, creates several levels of social classes spanning from the incredibly wealthy all the way down to the incredibly poor. Additionally, with major companies having such an influence on the economy, there are often sacrifices made to make profits. Big businesses can lay off workers or cut corners to lower production costs and raise profit.
Communism works to counteract the negative competition in a Capitalist economic system. The government decides what is best and controls the number of products and amount of resources used and distributed to maintain a balance between the people.In its effort to provide for everyone, this system sacrifices the day-to-day things that can be seen as important to consumers. Consumers do not have the liberty to influence what is made and produced. This can cause problems with providing for their needs. Additionally, since wealth is redistributed, there is little reward for work an individual does. The amount of work an individual puts in is not proportional to what they gain. Of course, the same could be argued in a Capitalist economy too. On the flip side though, this economic system has the ability to grow rapidly in an area the government wants to expand or improve. This allows an economic area to thrive due to the emphasis put on one or more aspects.
Together, both economic systems have flaws that the other likes to point out in a game of one-up to determine which is better. In the end, both have people who gain advantages at the expense of others and the government regulates what it deems to be right and wrong. Individual competition or not, the economy grows or declines based on what is being made and sold, and the consumers' satisfaction of these products, goods, and services.
In a capitalist economy, people are free to make their own buying and selling decisions. Resources and businesses can be privately owned and there is high competition to attract consumers. This generally lowers prices as one tries to make itself more appealing or better than a rival company.In this system, people can advance through their own gains in a company. This provides a desire to keep growing and improving one's economic standing. However, there are limits, such as level of education/ schooling and type of work that affects how much a person can grow and earn. This, therefore, creates several levels of social classes spanning from the incredibly wealthy all the way down to the incredibly poor. Additionally, with major companies having such an influence on the economy, there are often sacrifices made to make profits. Big businesses can lay off workers or cut corners to lower production costs and raise profit.
Communism works to counteract the negative competition in a Capitalist economic system. The government decides what is best and controls the number of products and amount of resources used and distributed to maintain a balance between the people.In its effort to provide for everyone, this system sacrifices the day-to-day things that can be seen as important to consumers. Consumers do not have the liberty to influence what is made and produced. This can cause problems with providing for their needs. Additionally, since wealth is redistributed, there is little reward for work an individual does. The amount of work an individual puts in is not proportional to what they gain. Of course, the same could be argued in a Capitalist economy too. On the flip side though, this economic system has the ability to grow rapidly in an area the government wants to expand or improve. This allows an economic area to thrive due to the emphasis put on one or more aspects.
Together, both economic systems have flaws that the other likes to point out in a game of one-up to determine which is better. In the end, both have people who gain advantages at the expense of others and the government regulates what it deems to be right and wrong. Individual competition or not, the economy grows or declines based on what is being made and sold, and the consumers' satisfaction of these products, goods, and services.