This document outlines the key differences between capitalism, socialism, and communism. Capitalism is based on private ownership and laissez-faire markets, while communism believes in collective ownership and a planned economy with no private property. Socialism is presented as a transition stage between capitalism and communism, where workers take control of the country and its resources. The document then describes Marx's five stages of societal evolution from primitive communism to advanced communism, where boundaries cease and all work to benefit each other.

1. Capitalism, Socialism and
Communism

2. Capitalism
• Ideology Associated with Adam Smith (“Wealth of
Nations”)
– “It is not from the benevolence of the butcher, the
brewer, or the baker that we expect our dinner, but
from their regard to their own interest.” – Smith
• Private Ownership
• Laissez faire Economy
• Competition
• Ensures Quality Products and Services at low Prices
• No Government Intervention in the Market
• Market acting as a Self-regulator

3. Adam Smith

4. Karl Marx

5. Marxism
Basic
Communism
Feudalism
Capitalism
Communism
!!!!
Socialism

6. Communism
• Economic system.
• Believes in collective (group) ownership and a
planned economy.
• No Concept of private Ownership
• The theory is that everybody pools their
resources and labor to evenly distribute
everything.

7. Stage 1: Primitive Communism
• This is how humans lived together
before the emergence of large-scale
agriculture.
• Small hunting and gathering tribes
• Everything was shared amongst the
tribe-food, jobs, belongings.
• No one owned land and no one is
exploited for their labor.
• Eventually one group comes to power
which leads to Feudalism…

8. Stage 2:
Primitive Communism - Feudalism
• Under feudalism, a king becomes ruler over all the
people. Exploitation begins.
• Belief in the Divine Rights of the King to Rule
• The king gives land and privileges to nobles who
rule the people on behalf of him
• As trade develops, some people get richer. This
leads to Capitalism…

9. Stage 3: Feudalism - Capitalism
• Business owners or capitalists get richer while
the workers do the work.
• Capitalists get more power to serve their own
interests.
• Capitalism creates a large working-class of
people who organize, create unions, and
demand changes. This leads to Socialism…

10. Stage 4: Capitalism-Socialism
• In the Socialist revolution all the rulers lose power, wealth,
and privilege.
• Workers take control of the country to produce things for
everyone. No one is exploited.
• Nothing is made for profit therefore all people benefit.
• These ideas spread across the world to create Communism…

11. Stage 5: Socialism-Communism
• Socialism recognizes the boundaries of a country, while
Communism does not recognize the boundaries
• All Across the World, all the property is jointly owned by
the People
• Money Ceases to Exist and people mutually dependent on
each other
• All human activity goes towards benefiting each other-
allowing all to live their lives to the fullest.

12. Communism/Socialism:
What’s the difference?
• Socialism is, “from each according to their ability, to each
according to their Work.”
– Socialism is the stage between Capitalism and Communism. It
builds upon the previous system (Capitalism) by nationalizing the
“means of production” (i.e. corporations, resources, banks, etc.),
but not by making everyone equal.
– Communism is extreme Form of Socialism which aims to set up
Classes, Moneyless and Stateless Society
• Communism is “from each according to their ability to
each according to their NEEDS.”