In a world full of variety and mixed social economies, capitalism and Communism are the most well-known economies. The most attached country to capitalism is the United States, while Communism is mainly attached to Russia and China. Capitalism and communism are both ideologies used in many countries’ societies, however they are different in many ways. The wealth is distributed differently, and the ownership of property differentiates between the two economies.
Capitalism is founded from Adam Smith, a Scottish Philosopher. Smith believed that within a system of markets, individuals respond to the incentive of generating more wealth by specializing their product or service. This theory became widespread and is used in a majority of the world, …show more content…
Capitalism is demonstrated by the people going out and making as much money as they desire if it is earned. However, the working class is stuck making a poor salary while the product they create makes a substantial profit, mostly going to the owners. Dr. Gordon Clark wrote an article called ‘Capitalism and Regional Inequality’ that described capitalism as being “dominated by the interests of individual enterprises.” (Clark) This piece shows that big businesses are only interested in making their profits while letting their own working class suffer with poor wages.
Most of the population in a Communist society makes equal wages. Barry Richman states in his article named ‘Ideology and Management: Communism and Compromise’ that “One can usually tell very little from dress or personal appearance in Chinese enterprises.” (Richman) This shows that a person cannot notice their financial status or rank in China because their Communist society blends together all of their populations incomes to an equal state In conclusion, Communism and Capitalism are both similar in how they are both common ways in which a society is run in different countries. These economies also differ vastly in theory, wealth distribution, and social-class
Capitalism is founded from Adam Smith, a Scottish Philosopher. Smith believed that within a system of markets, individuals respond to the incentive of generating more wealth by specializing their product or service. This theory became widespread and is used in a majority of the world, …show more content…
Capitalism is demonstrated by the people going out and making as much money as they desire if it is earned. However, the working class is stuck making a poor salary while the product they create makes a substantial profit, mostly going to the owners. Dr. Gordon Clark wrote an article called ‘Capitalism and Regional Inequality’ that described capitalism as being “dominated by the interests of individual enterprises.” (Clark) This piece shows that big businesses are only interested in making their profits while letting their own working class suffer with poor wages.
Most of the population in a Communist society makes equal wages. Barry Richman states in his article named ‘Ideology and Management: Communism and Compromise’ that “One can usually tell very little from dress or personal appearance in Chinese enterprises.” (Richman) This shows that a person cannot notice their financial status or rank in China because their Communist society blends together all of their populations incomes to an equal state In conclusion, Communism and Capitalism are both similar in how they are both common ways in which a society is run in different countries. These economies also differ vastly in theory, wealth distribution, and social-class