Communism V. Capitalism
By: Ryan Zhang 8-6
The Merriam-Webster Dictionary says that "Capitalism" is: a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government.
To make things easier to understand, my definition for "Communism" is: a government which shares profit and wealth created by land, factories and technology/machinery between a community and the government.
My definition for "Capitalism: is: a country whose citizens are the ones who run the companies, and decide what they provide and how much they charge for goods and services.
Pros and Cons
Some of the pros of communism are:
-The standard is the some for everybody
-There aren't many crimes committed because communist countries have strictly enforced laws
-Most communist countries have great education
Some of the cons of communism are:
-To much focus on the group as a whole, no significant benefits for yourself
-No personal freedom and if you went against the government (When communist governments were just beginning to form)
Some of the pros of capitalism are:
-Economic freedom can lead to political freedom because the government doesn't have a huge amount of control
-Efficiency is increased because more companies want to make goods that have a high demand
-With all the companies creating more goods since they have more freedom in the market, the GDP (Gross Domestic Product) is raised and wealth is increased
Some of the cons of capitalism are:
-Firms can lower pay wages to workers
-Firms can increase the prices of their product since they have that freedom
-Capitalist economies can have mass unemployment and recessions