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Capitalism Vs Communism: Adam Smith Vs Karl Marx and Fredrich Engels

This document compares and contrasts capitalism and communism. Capitalism is a free market system where private individuals own capital goods and make private economic decisions, while communism is a system where the means of production and profits are shared equally and all decisions are made by a central authority. The document discusses the pros and cons of each system, including differences in individual rights, wealth distribution, government structure, incentives to work, and who profits from enterprises. It concludes by analyzing that a mixed economy combining aspects of both systems may be ideal.

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khizir
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226 views

Capitalism Vs Communism: Adam Smith Vs Karl Marx and Fredrich Engels

This document compares and contrasts capitalism and communism. Capitalism is a free market system where private individuals own capital goods and make private economic decisions, while communism is a system where the means of production and profits are shared equally and all decisions are made by a central authority. The document discusses the pros and cons of each system, including differences in individual rights, wealth distribution, government structure, incentives to work, and who profits from enterprises. It concludes by analyzing that a mixed economy combining aspects of both systems may be ideal.

Uploaded by

khizir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CAPITALISM VS COMMUNISM

• Adam smith vs Karl Marx and Fredrich Engels


CAPITALISM

•Capitalism is an economic system in which capital goods are owned by


private individuals.
•Private owners make decisions
•Capitalism is free market “laissez-faire” according to Adam Smith.
•people should compete
COMMUNISM
• An economic system where everybody shares equally the means of production and the
profit and losses.
• Pools their resources.
• All decisions are made by central authority. Property is owned by the state.
• System of government is totalitarian.
• Education and health care
• All members of society are considered to be equal each person contributes and
receives according to their ability and needs.
PROS AND CONS OF
CAPITALISM:

 Freedom of choice
 No safety net.
PROS AND CONS OF
COMMUNISM:

 Security measure
 basic needs met everyone would have a job, house, health care, etc.
 Lack of choice
 no reward for being a better worker
DIFFERENCE BETWEEN CAPITALISM AND COMMUNISM

Capitalism Communism

Individual Rights. Community rights

working class and capitalist class there is no gap between rich and poor.

democratic system of government in capitalism. totalitarian government system exists

every individual has to work for himself to create wealth. wealth is distributed as per needs and ability.

profit of the enterprise is enjoyed by the owner only. profit of enterprise is distributed among all the people of the
economy.
THE COMMUNISM VS CAPITALISM
DEBATE
• Ownership
• Income Equality
• Consumer Prices
• Efficiency and innovation
• Healthcare
• Taxation
ANALYSIS

• Yes, I strongly recommend the middle point of capitalism and communism like mixed economy.
• Under this system there is freedom of economic activities and government interferences for the
social welfare.
• Both communism and capitalism are a form of social organization, that is associated with trade and
industry in the economy and discusses the ownership of property.
• As every coin has two aspects, a good and a bad, so as with the case of communism and capitalism. In
capitalism, the distribution of wealth is uneven, due to which rich get richer while the poor become
poorer. On the other hand, in communism, there is an equal distribution of wealth, but it does not allow
individuals to have personal property.

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