Throughout history, there have been many systems developed in order to have a better society. Two of the most analyzed, and debated systems that have tried to change an economy for the best are communism, and capitalism. Communism and capitalism have been compared on many levels, such as why they will or will not work, and which one works better. Throughout this essay I will concentrate on the differences, and similarities of how each operates, along with the benefits, and problems that each of them produces.
The primary point of difference between capitalism and communism is about the ownership of 'means of production' or resources in general. Communism avoids individual ownership of land for everybody. Instead, all these 'means of production' as land and other resources are owned by the state. State means the whole community of people. All lands and resources which enable the production of goods and services will be owned by one power. Everything must be shared and all the decisions about production will be made by the community. There will be equal wages for all, so all the decisions taken will be according to what is good for everyone.
On the other hand, capitalism believes in private ownership of land and production. Everybody will have to earn his worth. The major share of the profits earned from a business will go to the person who owns the means of production, while the workers who are responsible for running the business will get a small share. Every man will get his wages according to his merit and according to the thinking of the man who owns the means of production. Naturally the people who own the means of production, the capitalists, call the shots when it comes to decision making!
This is the major bone of contention between the two ideologies, ownership of means of production! Both are extreme ideas. While communism can kill the idea of individual enterprise, which has led to most of the technological innovations we see today, capitalism has...