compare and contrast communism and capitalism
An economic system consists of the institutions and the methods by which resources are allocated as caputalism as products and services distributed and these are capitalism and communism. Both of these economic systems mainly focus on how to allocate goods to the population. However, there is a major difference between capitalism and communism. The difference between Capitalism and Communism is that capitalism refers to the private individuals who own and control the industries while communism means the community controls the trade and industry of a country.
Communism vs capitalism compare and contrast essay
Abd profit earned in capitalism is of the owners of the company whereas the profit earned in communism is distributed to the people of the economy. The capitalist economic system is categorized by private ownership of assets and business. It relies on free-markets to determine incomes, wealth, price, and distribution of goods. On the other hand, the Communism economy system is characterized by government intervention to re-allocate resources equally and efficiently.
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Capitalism is an economic system in which private entities own and control the factors of production for a profit. The four factors are entrepreneurship, natural production, capital goodsand labor.
This economic system provides business owners and employees the freedom to manage their incomes. The only Government intervention in this system is taxation and standard regulatory laws. The government has no stance on business operations nor can it object to how a company and its employees choose to spend their earnings. Capitalist ownership means two things, one is owners control the factors of production and the other is they drive their income from ownership.
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This gives them the ability to operate their companies efficiently and also provides them with incentives to maximize profits. Capitalism results in offering the best products for the best prices. This is because consumers are willing to pay more for what they want the most. However, there is cut-throat competition here https://digitales.com.au/blog/wp-content/custom/negative-impacts-of-socialization-the-positive-effects/officer401-name.php businesses manufacture efficient products to maximize their profits.]
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