Definition of Capitalism
According to Karl Marx___”Capitalism is a particular mode of organisation of production which is characterized by wage slavery, production of profit, and creation of surplus value”.
According to Louks and Hoots___”Capitalism is a system of economic organization featured by the private ownership and the use for profit of man-made and nature made capital”.
Karl Marx initiated the idea of Communism, in his book The Communist Manifesto, as a response to Capitalism. These two political theories are in opposition to each other as in the former promotes private ownership, the latter stands against it. Take a full read of the article given below, to have a clear understanding of the differences between capitalism and communism.
Definition of Communism
Political and social sciences, communism is the philosophical, social, political, and economic ideology and movement whose ultimate goal is the establishment of the communist society, which is a socioeconomic order structured upon the common ownership of the means of production and the absence of social classes, money, and the state.
Difference between Capitalism and Communism
|Definition||Capitalism is an economic system in which the trade and industry of the economy is owned and controlled by private individuals, to make profit.||Communism refers to social system in which country’s trade and industry are controlled by the community and the share of each individual relies on his ability and needs.|
|System of Government||Democratic||Totalitarian|
|Wealth Distribution||Every individual has to work for himself to create wealth.||Wealth is distributed as per needs and ability.|
|Factors of production||Privately-owned||government-owned|
|Marketing||Free and Competitive||Controlled by government bodies|
|Profit||Financial gain and wealth is belonging to the private individual only.||here Shared by all the people of economy and country.|