Communism V. Capitalism

By: John Yang

Definition of Communism

Communism is a political and economic system in which the government or state owns all resources, land, buildings and mines. Public services such as healthcare and education are also owned by the state. The wealth and profit made by the state or country is equally divided among all citizens based on individual need. The government owns and runs everything in this kind of economy

Definition of Capitalism

Capitalism is an economic and political system where the country's trade and property are owned by private and corporate owners. Prices, production and distribution are determined by the free market . The wealth of the state or country is distributed unevenly resulting in normally 3 classes of people; The working, middle and upper class people. Healthcare and education is provided by private companies or entities. The government normally has very little say in the kind of economy.

Countries that employ capitalism

Most countries in the world are starting to employ a capitalist economy. While there are no countries right now that have a true capitalist economy, these are some countries that are getting very close.
- United States
- Japan
- Germany
- South Korea

Countires that employ Communism

Out of the previously 25 communist countries, only 5 remain. 3 of these 5 countries are even starting to change their communist ways by changing their economy to be more capitalist.
- China (Changing to be more Capitalist)
- Vietnam ( Changing to be more Capitalist)
- Cuba ( Changing to be more Capitalist)
- Laos
- North Korea

Pros and Cons of Capitalism

- economic growth (individuals work hard to create expand their business. This raises the GDP of the county)

- freedom (allows the citizens to be in control, not the government)

- supply and demand and the public decides the price of goods.

- citizens can own property and businesses


- Business giants monopolize the field they are in which prevents other businesses

- makes people materialistic and money oriented

- can exploit workers by paying them very little

- sectors people into 3 classes upper, middle and working

Pros and Cons of Communism

- everyone is entitled to healthcare

- everyone is entitled to education

- very low unemployment rate

- everyone has access to basic needs

- Businesses have a limit on what they can earn

- no personal freedom

- leads to corruption and poverty