Major Differences Between Communism and Capitalism New Changes

Filed in Education by on May 20, 2021

Difference Between Communism and Capitalism: Capitalism and communism are different in their political and economic ideologies. Both concepts are two completely different – Communism encourages a classless society. On the other hand, capitalism divides society into rich and poor.

capitalism and communism


Capitalism as a political system gradually has grown up in Europe since medieval times but it was about the middle of the 19th century when many people realized that, despite all of the technological progress, they could not accept the injustices of the social order associated with it.

The term “capitalism” was natural for naming a system where capital and the people enriched by it – capitalists – flourished. “The Communist Manifesto,” published in 1848 by Karl Marx and Friedrich Engels, is considered the pivotal moment in people starting to use the terms “capitalism,” “socialism” and “communism” as descriptions of diverse political concepts.

One should note that from the start, capitalism, as the existing political system, had a bad reputation, and socialism and communism as ideas of a better future were perceived as noble.


  • The system of government is democratic
  • Property is privately owned
  • Driven by free enterprise
  • Wealth distributed unevenly
  • Education and health care provided by private entities
  • Freedom of the press Class distinctions: upper class, middle class, and working-class
  • Focus is on the individual and his/her own progress in life


Communism can refer to specific political parties, at its core; it is an ideology of economic equality through the elimination of private property.

The concept gained popularity with the works of Karl Marx, he centered his ideologies on the inequality and suffering result from capitalism. Under capitalism, private business people and corporations own all the factories, equipment, and other resources called “the means of production” which results in the exploitation of the poor.

Communism differs from socialism, though the two have similarities. Both philosophies advocate economic equality and state ownership of various goods and services.


  • The system of government is totalitarian
  • The property is owned by the state
  • No free enterprise is allowed
  • Wealth distributed equally
  • Education and health care provided by the state
  • Press controlled and owned by the state
  • Classless society: all members of society are considered to be equal
  • The focus is on the progress of the community as a whole.

Notable Distinctions Between Communism and Capitalism

1. Communism stands for abolishing private property while capitalism, on the other hand, stands for private property.

2. In Communism, the community or society solely owns the resources or the means of production. On the other hand, in capitalism, the resources or the means of production lies with a private owner.

3. While the profit of any enterprise is equally shared by all the people in communism, the profit in a capitalist structure belongs to the private owner only.

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4. While the private party controls the resources in capitalism, it is the society that controls the whole means of production in communism.

5. For Communists, society is above individuals. But for capitalists, individual freedom is above the state or society.

6. The most significant disadvantage of communism stems from its elimination of the free market.

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CSN Team.

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