Question

What is the main difference between capitalism and communism

Answer 1

Communism; community or society owns the resources or the means of production

• profit is equally shared by all people
• society controls the whole means of production
• society is above individuals
• society/government determines the price structure
• abolishes private property
• equal work for benefits/ability
• class-less society (no difference between rich or poor)

Capitalism; resources or means of production is owned by the private owner

• profit belongs to the private owner
• they control the resources
• individual freedom is above the state or society
• individual has full control over production and decides on price
• ability to have private property
• individual is responsible for their work (want a promotion..you must work harder to get up that ladder)
• society is classified by class (depends on the individual and how well they earn their living)

Step-by-step explanation:

Answer 2

To understand the distinction between the two systems, we have to understand the phrase “means of production.” Means of production are, simply put, the tools used to turn raw materials (some examples might be cotton, steel, or silicon) into commodities (clothing, car, computer chips, etc.).

In capitalism, these means are privately controlled, and are operated for the profits of the owners. Workers have no ownership, except in the rare case of worker-owned co-ops.

In communism, the means of production are controlled democratically by the workers; the people who perform labor own the tools they use to make commodities.