Essay topic and outline
The topic is “Contrasting capitalism and communism economic systems”
The definitions of capitalism and communism
Capitalism implies to Laissez Faire economics. It has its basis on Adam Smith’s ideas
and concepts about an economic system. It places greater emphasis on the need for the
government not to interfere with the economic system. Additionally, labor is presented to
be the most significant factor in economic operations and not land.
Communism implies to collectivism whereby equality is the corner stone of an economic
system. Communism has its basis on the ideas and concepts outlined in the communist
manifesto by Karl Marx. Emphasis is placed on the understanding that ownership of
property hinders equality. For people to lead better lives in the society equality is
considered to be an essential ingredient.
II. The Differences between Capitalism and Communism
i. The means of production or resources
Capitalism: means of production or resources are owned by individuals or private owners
Communism: means of production or resources are owned by the society or community
Capitalism: Individuals determine how much they will get from their work through the
amount of effort they apply
Communism: Work is equally shared and the proceeds or benefits equally shared
iii. Ownership of property
Capitalism: supports the existence of private property in the economic system
Communism: stand for the elimination of private property from the economic system
iv. Class and status in the society
Capitalism: divides the society whereby there are two classes of people, the poor and the
Communism: does not support the division of people in the society in relation to their
In Capitalism, the means of production or resources are privately owned while in
communism these resources are owned by the society. Capitalism presents that the amount of
benefit that one gets within the economic system is determined their input and enjoyed alone. On
the other hand, in communism there is equality in doing work and sharing of the benefits as well.
Capitalism promotes private ownership whereas communism stands for communal ownership of
property. Differences in class and status in the society is founded on capitalism whereas
communism offers equality whereby the society or community is class less.