Question #d84b7
2 Answers
They are run by private enterprise and private ownership is legal
Explanation:
Communist economies are based on collective ownership of production means, factories and lands are owned by the state, the latter runs the economy. No private company and no private ownership is actually legal in such a system. Planification was also a feature of communist economies.
Capitalist economies are based on competition and the law of supply and demand(No five-year plan of industrial production unlike in communist economies). Men are responsible and free to create businesses, look for work and social equalities exist and are supposed to create emulation by rewarding the worthiest.
Social inequalities are almost inexistent in communist economies and so is economic liberty. It is the precise opposite in capitalist economies.
They differ in the distribution of wealth, degree of individual freedom, and the involvement of the government.
Explanation:
Communism is a form of enforced socialism. The goal of Communism is social justice in terms of wealth. The ideal is that everyone would be equal in terms of their access to wealth and the material things that make life enjoyable and pleasant.
In order to achieve social justice communism uses the power of the state to evenly distribute the wealth of the nation so that everyone gets their "fair share" . The government is actively involved in all economic decisions and production. People are coerced into working to produce their "fair share" and forced to share whatever excess they don't need. The mantra is from each according to his abilities to each according to his needs.
Communism has a high degree of government involvement, a low level of individual freedom and a high level of equality of wealth.
Capitalism is a focus on the individual and his ability to acquire and produce wealth. The goal of Capitalism is equal opportunity to achieve wealth. The ideal is that each person should be free to achieve and acquire to the best of his abilities the things that make life enjoyable and pleasant.
In order to achieve this individual freedom Capitalism uses competition and Free Market enterprise. The Government is only involved in economics decisions in order to make sure that the competition is fair, and open to all people. People are left to success or fail on their own. The mantra is if a person wouldn't work neither let him eat.
Capitalism has a low degree of government involvement , a high degree of individual freedom a low level of equality of wealth.
