Capitalism and Communism: And their Comparison

To analyze the scope of communist and capitalist counties. Countries belong to them. Their History and the pillars of Communism and Capitalisms'.

1. TEAM A BS-TMM 6th Team Members M Mubeen Afzal (Leader) Ali Hassan Ali hamza Saqib khan Shuqran Babar Sudais khan Ali Ertaza Talha Iqram

2. Topic: Communism and Capitalism

3. Table of Contents: Introduction Capitalism Communism History of Communism and Capitalism. Founders of Communism and Capitalism. Pillars of Communism and Capitalism. Advantages and Disadvantages of Communism and Capitalism. Countries of Communism and Capitalism. Difference Between Communism and Capitalism.

4. Capitalism Capitalism is a widely adopted economic system in which there is private ownership of the means of production. Modern capitalist systems usually include a market-oriented economy, in which the production and pricing of goods, as well as the income of individuals, are dictated to a greater extent by market forces. Capitalism is built on the concepts of private property, profit motive, and market competition.

5. How it Emerges The capitalism emerged in the early modern period between 16th and 18th century. It started spreading from England through different companies Then it changed into industrial capitalism in 18th century. By the beginning of 21st century it is the major economic system worldwide. The future of capitalism depends on people.

6. Communism The beliefs of communism, most famously expressed by Karl Marx, center on the idea that inequality and suffering result from capitalism. An economic system where everybody share equally the means of production and the profit and losses. All decisions are made by central authority.

7. Karl Marx is the founder of communism. He wrote a book communist manifesto. It Was formed in 1840s Derived from French communism It evolved from Russia. front men of communism are Vladimir Lenin, Leon Trotsky , Joseph Stalin. History

8. How it emerges It was began to practice in soviet union USSR. It became famous among workers in Russia. It started in 1919-23 in war communism through Russian civil war Then during cold world war 1947-60 it was spread to east Europe, France Italy and Asia.

9. Pillars of Capitalism and Communism

10. Pillars of Communism Pillars of Communism.” It is alarming how much these pillars have infiltrated America’s social and political framework in the last 171 years. 1. “Abolition of property in land and application of all rents of land to public purposes.” Property taxes are our government’s way of insuring that your private land is used for public purposes, and if you are unable (or unwilling) to pay the government’s toll, your land will be taken and given to someone who is able to pay toll. 2. “A heavy progressive or graduated income tax.” The first progressive income tax was passed in the U.S. in 1862, 14 years after Marx wrote his Manifesto, and had a maximum tax rate of 5 percent. Now, it is 37 percent.

11. 3. “ Abolition of all rights of inheritance.” The “death tax” is especially contemptible because it is the government’s way of enslaving you to the ‘needs’ of the public, even after your death. 4.“Confiscation of the property of all emigrants and rebels.” The deplorable 2005 Supreme Court decision “ Kelo vs. City of New London” held that governments can seize one person’s private property and give it to another who will develop it to benefit the collective. 5. “Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.” 6. “Centralization of the means of communication and transport in the hands of the State.”

12. Pillars of Capitalism These capitalist economies operate on the pillars of private property, supply, and demand, competition, freedom, and incentive. Private Property: Private property allows people to own tangible and intangible assets, with examples of the former being land and houses, the latter stocks and bonds. Supply and Demand: Supply and demand determine the prices of goods and services. If the good or service you are selling is in high demand, it is worth more. 

13. Competition: Competition is at the heart of a capitalist system. Competition drives businesses to work at maximum efficiency and offer their products at the best prices with high quality to avoid getting beaten out by competitors that have better prices, efficiency, and quality. Freedom: Freedom in a capitalist economy means that no one can tell you what to do in order to earn money, and no one can tell you how to spend it. It’s entirely up to you and what you plan to do with your life. Incentive: An incentive in economics is the financial motivation for people to take certain actions. It allows businesses to become more creative and inventive, as everyone competes to have products or services that are better than their competitors.

14. Capitalism and Communism

15. Capitalism Advantages: You can own property. Individuals can prosper/competition for wages. Freedom of speech, press, religion. Embrace ethnic diversity. Makes the individual work worth something.

16. Capitalism Disadvantages: Poverty. Not everyone has healthcare. Monopolies- control too much business. Creates inequalities (ex: rich vs. poor, have vs. have not).

17. “A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.” ― Milton Friedman

18. Communism Advantages: Everyone gets something (equal). No unemployment. Healthcare for all citizens. Cooperation of the people (work for the country to benefit).

19. Communism Disadvantages: Abuse of power. Restrictions- no freedom of speech, press, no religious practices. Censorship. Against ethnic diversity. Government controls property- very little if any, could own private property.

20. “Capitalism is the astounding belief that the wickedest of men will do the wickedest of things for the greatest good of everyone.” – John Maynard Keynes

21. Capitalistic and Communist Countries

22. States Capitalistic Countries: America Hong Kong Singapore New Zealand Switzerland Unites Arab emirates Dubai Communist Countries : China Vietnam Cuba Laos Pakistan India Switzerland Israel Japan

23. America The United States is a capitalist society where means of production are based on private ownership and operation for profit. The United States is not a totally capitalist society, however, because the economy has regulations, taxation, and some subsidization. . Additionally, private businesses must register with government agencies, and certain types of companies need government-approved licenses.

24. Hong Kong and New Zealand: Hong Kong: The economy of Hong Kong is a highly developed free-market economy characterized by low taxation, almost free port trade and well-established international financial market. Interest rates are determined by the individual banks in Hong Kong to ensure they are market driven. New Zealand New Zealand has been a capitalist country since its settlement by Europeans in the ninetenth century. Early settlements were undertaken by private associations bought and sold land to other private individuals, companies and associations.

25. Switzerland and UAE: Switzerland: Capitalist to its core, Switzerland's highest individual tax rate is 36%, the lowest in Europe. Government spending amounts to a third of gross domestic product, compared to half in Scandinavia And Switzerland is more open to trade. Unites Arab emirates: With its towering skyscrapers, vast boulevards, imposing shopping malls, nightclubs, beaches and glittering lights, Dubai is one of the safest sanctuaries of global capital. Being tax free, it is the abode of most of the third world’s tax evaders, corrupt upstarts and mafia dons.

26. China and Vietnam: China: The current constitution was created in 1982 and been continually revised since. The constitution includes many civil rights: free speech, press, worship, the right to trial, and the right to own private property There has been very little done to ensure that new laws instituted follow the constitution. Veitnam: Communism in Vietnam is linked to the Politics of Vietnam and the push for independence. Marxism was introduced in Vietnam with the emergence of three communist parties; the Indochinese Communist Party, the Annamese Communist Party and the Indochinese Communist Union Vietnamese Communist Party with Trần Phú as its first Secretary General.

27. Cuba and Laos: Cuba: The Communist Party of Cuba is the ruling political party in the Republic of Cuba. The Cuban constitution ascribes the role of the party to be the "leading force of society and of the state" Laos: It is a country of 4.5 million people where a small class of entrepreneurs and members of the Communist establishment has attained a level of prosperity reminiscent of the privileged life of those who benefited from French colonialism and the years of American dominance that ended with the Communist victory.

28. Capitalism VS Communism

29. Difference : Definition An economic system in which the trade and industry of the economy are owned and controlled by private individuals to generate profit is called Capitalism. A social system in which country’s trade and industry are controlled by the community and the share of everyone relies on his ability and needs, is called communism.

30. Difference: 1. Base: Capitalism is based on the Principle of Individual Rights, whereas Communism is based on the Principle of Community Rights. 2. Promotes: Capitalism is in favor of class distinction, i.e., working class and capitalist class, hence the degree of class distinction between rich and poor is very high. On the contrary, communism opposes a division of society according to class, as it promotes classless society, so, there is no gap between rich and poor.

31. Difference: 3. Government Interference: Under capitalism, the government does not have much involvement. In contrast communism, there is a high level of government intervention. 4. Wealth Distribution: In capitalism, every individual must work for himself to create wealth. As opposed to this, in communism wealth is distributed as per needs and ability. 5. System of Government: There is a democratic system of government in capitalism. As against this, totalitarian government system exists in socialism.

32. Difference: 6. Factors of Production: The production inputs like land, labor, and capital are privately owned by the individuals and enterprises, while the means of production are held by the state, in the case of communism. 7. Preference to: In communism, more preference is given to society rather than an individual which is not in the case of capitalism, i.e., freedom of individual is vital. 8. Market: In capitalism, fierce competition exists between the firms whereas in communism, as the market is controlled by the state, the competition is quite low.

33. Difference 9 . Individual incentives: In communism, the profit earned by the enterprise is distributed among all the people of the economy. On the contrary, the profit of the enterprise, in capitalism, is enjoyed by the owner only. 10. Labour: In capitalism workers are free to select the employer and occupation. In communism state determines one's employer and employment.