Economic ideologies significantly influence the well-being of the citizens, external affairs, and the internal conduct of a country. The most contrasting systems that were established in previous centuries are communism, socialism, and capitalism. Each of the economic schools possesses significant disparities and may exist as political regimes and financial systems, which is vital to dissimilate. Nevertheless, three forms of government may correlate in certain aspects, which the essay will demonstrate.
There is a primary difference between the concept of capitalism as opposed to communism and socialism. While communism and socialism may be both economic and governing forms, capitalism can only perform the role of a commercial system (Gilabert and O’Neill). The central purpose of the capitalistic regime is to provide free market conditions for further assurance of wealth. However, other systems rely on a one-party state, where the belongings are collective and regulated strictly by the government.
Relying on the control system in the three ideologies, it is fair to discuss the process of determining the pricing of the production. Capitalistic markets base their pricing on demand and the difficulty in producing; therefore, not consider the customers’ abilities. Communism preached the equilibrium: “from each according to his ability, to each according to his need,” providing each class with subjectively defined goods (World Heritage Encyclopedia). The socialistic system aims to provide equality between all, consequently forming the pricing and access to goods the same for each citizen.
Apart from different economic and governing approaches, capitalism, socialism, and communism have distinct beliefs of freedom and choice. Capitalism is the most democratic system of all, where it creates healthy competition between companies, thus creating liberty of choice for the consumers (“Comparing Economic Systems” par. 4). On the contrary, communism takes control and subjugates the working-class defining or prohibiting social and economic concepts. Socialism takes a middle ground, thriving to eliminate the gap between rich and poor, therefore benefiting those under the poverty line but infringing upon the upper class.
Capitalism, socialism, and communism are three economic systems that once became innovational and changed the world’s business perspective. The primary difference between the three models is their view on freedom of choice and distribution of responsibility. Capitalistic ownership allows for the most autonomy, relying on the abilities of a person. Socialism is a more utopian structure, seeking to provide equality for all people, while communists allow themselves to violently restrict people, defining their needs, beliefs, and worldviews.
References
“Comparing Economic Systems.” US History. n.d. Web.
Gilabert, Pablo, and Martin O’Neill. “Socialism.” Stanford Encyclopedia of Philosophy. 2019. Web.
World Heritage Encyclopedia. “From Each according to His Ability | Project Gutenberg Self-Publishing – EBooks | Read EBooks Online.” Project Gutenberg Self-Publishing Press. n.d. Web.