First of all, the ownership of the means of production, the factories, for capitalist are privately owned; whereas, communist means of production are communal. In addition, communist do not allow privately property unlike capitalist who promote private ownership. Capitalist promote entrepreneurship, which is the creation of mainly small privately owned business for the owner 's own benefit. Communist, however, would encourage businesses that benefit the state or community as a whole, and a communist regime would discourage its citizens to improve their status in life since every individual is equal. Also, the profits achieved from production and businesses in a communist society are shared equally among its citizens regardless of each individual 's contribution, society above individualism.
Capitalism and Socialism are types of systems throughout the world in different societies that have had their successful periods of time, but did not show to have the same success at other times during the course of history. Socialism’s theoretical essence says that ownership of property should be in the government’s hands meaning that government has more rights in the assets than individuals do while Capitalism gives to the individuals the right of property, creating a better society since the individuals can produce and purchase as they need to. Capitalism is the political and economic system where land, factories, companies, etc. are owned privately to produce profit for those who own them. Prices of services and goods vary from the costumer’s
This is evident throughout history, where the people at the top exploited the labourers to make a better profit. The ruling system in capitalism and its features like private ownership make it very easy for someone to take advantage of the system and end up exploiting others. But what exactly is capitalism? Capitalism is the main economic system that rules most of the world. The system is –in short- when private entities own the four factors of production.
Thus, communism wants to abolish state structure after attaining the goal of classless society. On the other hand, the exponents of socialism regard state as a positive institution which can effectively implement the economic principles of socialism. They believe that the rights of the wage-earners are better safeguarded when all economic activities are carried out within the rules and regulations enacted by the
The Marxist methodology uses economic and sociopolitical inquiry and employs that to the critique and analyse the development of capitalism and the role of class struggle in systemic economic change. Capitalism according to Marx is a mode of production based on private ownership
Democracy is supposed to enable the capital achieved by a nation by enforcing a sense of control in the country’s accomplishments by its people. A successful, true democracy enables a nation’s prosperity as the input of all leads to compromise for all to achieve to which they strive for. Though this is ideal, the alignment of capitalism to democracy rarely maintain these attributes. Political and economic systems are often are similar in order to correlate for how the society functions as a whole. For example, democracy and capitalism are associated with one another, as are socialism and communism.
Similar to many other concepts in Rand’s novels, the meaning of “money” also contradicts its usage in the real world (Gordon 301). The only economic system that would work is laissez faire capitalism without rules and regulations so that ideas and mental freedom can thrive. All other systems inhibit the qualities that are needed to make society progress. Money is considered to be the root of all evil, but in Atlas Shrugged by Ayn Rand, money is how the effort’s of an individual are measured. Rand proves this by demonstrating the downfalls of socialism as it is shown to be an economic system in which a person’s work goes to benefit the entire society rather than himself (Moore).
In addition, one of the most representative example of illustrating this ideology is the popularization of entrepreneurial budgeting. Entrepreneurial budgeting empowers citizens and uses decentralized authority. It provides departments with more freedom to decide the budget and achieve the goals. The second major American ideology is capitalism. Under capitalism, people tends to limit the role of government and give play to the free market effect.
Karl Marx introduced the theory of class struggle during the industrialisation period that emphasised on one’s financial status. However in this contemporary society, Marx’s monolithic theory fails to encompass other aspects of social life. Building upon Marx’s theory of class struggle, Pierre Bourdieu sets out to rethink the factors involved in the stratification of classes. The addition of cultural capital to economic capital was amongst the many capitals Bourdieu suggested in determining the class of an individual in this society where ‘capital’ is interpreted as a “set of actually usable resources and power” (Bourdieu, 1979, p.114) that allows one to invest and gain returns. Economic capital is wealth and income one accumulates, while cultural