CAPITALISM

VS

COMMUNISM

BY; ASHISH GOSWAMI(A006)

CAPITALISM AND COMMUNISM

• Communism (from Latin communism –common, universal) is a socioeconomic system structured upon the common ownership of the means of production and characterized by the absence of social classes, money and the state; as well as a social, political and economic ideology and movement that aims to establish this social order.

• Capitalist is derived from capital, which evolved from capitale, a late Latin word based on caput, meaning "head" —in the sense of movable property.

• The essential feature of capitalism is the investment of money in order to make a profit. In a capitalist economic system capital assets can be owned and controlled by private persons, labor is purchased for money wages.

• Founder of capitalism.(Adam smith)

HISTORICAL BACKGROUND

• Actually firstly started in France…Communism refers to‘ Marxism–Leninism' refers to an ideology developed and propagated by by Joseph Stalin

• Run under single-party rule, in contradiction to Marxism's dictatorship of the proletariat, which is a democratic state form.

Karl Marx and Friedrich Engels was founder of communism

• Now, coming to capitalism …The defining feature of capitalist markets, is feudalism, is the existence of a market for capital goods (the means of production), meaning exchange-relations (business relationships) exist within the production process. Additionally, capitalism features a market for labor.

• . "Capitalists" are individuals who derive income from investments. Labor includes all physical and mental human resources, including entrepreneurial capacity and management skills, which are needed to produce products and services. It is the act of making goods or services by applying labor power

IMPACT ON GLOBE

COMMUNISM AND CAPITALISM FEATURES

• CAPITALISM;

• DEMOCRACY

• ROLE OF GOVERNMENT

• MARKET

• COMMUNISM;

• ONE PARTY SYSTEM

• EQUALITY

• CRITISISM; communism • NO liberty to • Criticism (COMMUNISM)• Criticisms of communist party rule is an article

dealing with criticisms of the practical policies implemented by 20th century governments claiming to follow the ideology of Marxism-Leninism (these are usually called "Communist states" in the West).

• Criticisms of Marxism is an article dealing with criticisms of Marxist theory itself

• Capitalism ;Critics

• Lack of equality

• Over exploitation

• Improper distribution of wealth

• Corruption

Advocacies Of Capitalism

• Economic Growth

• Opportunities'

• Increased GDP

• Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith’s advocacy of letting a free market control production and price, and allocates resources.

• Political freedom• In his book The Road to Serfdom, Freidrich

Hayek asserts that the economic freedom of capitalism is a requisite of political freedom. He argues that the market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman, Andrew Brennan and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression.

• Self-organization• Austrian School economists have argued that capitalism

can organize itself into a complex system without an external guidance or central planning mechanism. Friedrich Hayek considered the phenomenon of self-organization as underpinning capitalism. Prices serve as a signal as to the urgent and unfilled wants of people, and the opportunity to earn profits if successful, or absorb losses if resources are used poorly or left idle, gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Thus the activities of millions of people, each seeking his own interest, are coordinated.

OUTCOME OF THE STUDY

• World is moving, towards

liberalization and faster growth and

hence promoting Capitalism

• Their, has been subsequent decrease in

fascist and communist government all

over the world

• World is getting richer ,but wide gap

between rich and poor.

• THANK U…………………