What is Communism?
Communism is a political and economic ideology that aims to create a central unit of governance that shall be responsible for all the decision-making, and the main objective is not profit-making rather their objective is to fulfil the needs of society at large. The business houses will not have the power to make business decisions and central decision-making will regulate and guide the market proceedings. Here the central unit established shall direct businesses and the private sector about the pricing, market offering, and salary structures. Low decision-making power is given to the private sector after a review of the framework of capitalism.
The ideology of communism advocates for the radical uprooting of the wealthy ruling class to set up a democratic free society with no class divisions and shared ownership of the means of production with equal allocation of resources. Karl Marx and Friedrich Engels were two of the most well-known upholders of communism in the nineteenth century.
Key takeaways from Communism:
- Under Communism, the authority to make decisions lies in the hands of central authority and/or governmental units.
- The basis of communism is social welfare and social development rather than profit maximisation.
- The preaching of communism was made by Karl Marx, he strongly supported the ideology of communism after the Industrial Revolution.
- Communism advocates the idea of a free society with no division among classes and common ownership of means of production.
Difference between Capitalism and Communism
Decision-making regarding production, trade, and industry lies in different hands under different conditions. There are generally two basic theories, namely Capitalism and Communism. Under Capitalism, decisions lie in the hands of private individuals with a motive of profit maximisation. Whereas under Communism, such decisions lie in the hands of central authority/government bodies, with a motive of social welfare.
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