Capitalism Versus Communism

CAPITALISM |COMMUNISM | |
|Definition: *An economic system based on the private ownership of |Definition: *A social, political and economic ideology that tends |
|the means of production (technology, transport, and banking). |to establish a society essentially based on the private ownership of|
| |the means of production. |
| | |
|Historical back ground: *Capitalism came to substitute for |Historical back ground: *Communism appeared in Russia in 1917 then |
|Feudalism in the late 18th and early 19th centuries in Europe |extended to China in 1949 and eastern Europe during the same period |
|particularly in Britain. Capitalism meant liberalism; it was |it also affected other countries like North Korea, North Vietnam, |
|inspired by the Laissez Faire theory of Adam Smith, according to |and Cuba between 1989 and 1990. The founding fathers of Communism |
|which the state must not interfere in the economic life. |are Carl Marks and Frederic Angles who published The Communist |
| |Manifesto. |
|Characteristics: 1) Ownership of Means of Production: |Characteristics: 1) Ownership of Means of Production: |
| | |
| |*The common ownership of the means of production. |
|*The accumulation of capital wage, labour and competitive markets. |*Holding all properties in common and the ownership of the means of |