The Differences Between Capitalism and Communism

What is the difference between capitalism and communism?

Capitalism and communism are two different ideologies, with opposing ideas about how to run and organise a country.

What are the differences between capitalist and communist ideas about how to run and organise a country?

Capitalist and communist countries have differing ideas on many subjects, including: how businesses should be run; voting systems that decide who rules a nation; organisation of the economy; distribution of wealth.

What are the differences between capitalist and communist ideas about how businesses should be run?

A capitalist country believes businesses should be owned by private individuals, with no government interference, and allowed to make money for themselves. By contrast, communists believe the government should own all businesses.

What are the differences between capitalist and communist ideas about voting systems?

A capitalist country believes there should be democratic elections, with a choice of 2 or more parties to vote for, when deciding who runs the country. By contrast, a communist country believes in a one-party government, with no voting or choice in who runs the country.

What are the differences between capitalist and communist ideas about how the economy should be run?

A capitalist country believes in a free economy, with businesses in competition with each other. By contrast, a communist country believes in strict controls on the economy, so that everything is run by the state, for the state.

What are the differences between capitalist and communist ideas about the distribution of wealth?

In a capitalist country there are great differences in wealth between groups of people. By contrast, a communist country believes wealth should be shared equally among the people.

What was significant about the differences between capitalist and communist ideas about how a country should be run and organised?

Having different ideas about how a country should be run and organised does not always mean nations have to become enemies. However. this difference in ideas was significant for 4 key reasons:

• ❖ It resulted in the ideological conflict between the USA and the USSR that defined the Cold War between 1945 and 1990.
• ❖ Both the USA and USSR thought their system was the way in which all countries should be organised and run.
• ❖ The USA believed the USSR was intent on spreading communism, so it was seen as threat to the American way of life.
• ❖ The USSR felt the actions of capitalist countries from 1917 to 1945 were aggressive, and that its way of life was under threat.