capitalism

Communism, Socialism, Capitalism, and Democracy

Communism is one of our top all-time lookups, and user comments suggest that’s because it is often used in opaque ways. In some sources, communism is equated with socialism; in others, it is contrasted with democracy and capitalism. Part of this confusion stems from the fact that the word communism has been applied to varying political systems over time. When it was first used in English prose, communism referred to an economic and political theory that advocated the abolition of private property and the common sharing of all resources among a group of people, and it was often used interchangeably with the word socialism by 19th-century writers. The differences between communism and socialism are still debated, but generally English speakers used communism to refer to the political and economic ideologies that find their origin in Karl Marx’s theory of revolutionary socialism, which advocates a proletariat overthrow of capitalist structures within a society, societal and communal ownership and governance of the means of production, and the eventual establishment of a classless society. The most well-known expression of Marx’s theories is the 20th-century Bolshevism of the U.S.S.R., in which the state, through a single authoritarian party, controls a society’s economy and social activities with the goal of realizing Marx’s theories.

Communism is often contrasted with capitalism and democracy, though these can be false equivalencies depending on the usage. Capitalism refers to an economic theory in which a society’s means of production are held by private individuals or organizations, not the government, and where prices, distribution of goods, and products are determined by a free market. It can be contrasted with the economic theories of communism, though the word communism is used of both political and economic theories. Democracy refers to a system of government in which supreme power is vested in the people and exercised through a system of direct or indirect representation which is decided through periodic free elections. Democracy is contrasted with communism primarily because the 20th-century communism of the U.S.S.R. was characterized by an authoritarian government, whereas the democracy of the 20th-century U.S. was characterized by a representative government.

Did You Know?

Capital is wealth—that is, money and goods—that's used to produce more wealth. Capitalism is practiced enthusiastically by capitalists, people who use capital to increase production and make more goods and money. Capitalism works by encouraging competition in a fair and open market. Its opposite is often said to be socialism. Where a capitalist economy encourages private actions and ownership, socialism prefers public or government ownership and control of parts of the economy. In a pure capitalist system, there would be no public schools or public parks, no government programs such as Social Security and Medicare, and maybe not even any public highways or police. In a pure socialist system, there wouldn't be any private corporations. In other words, there's just about no such thing as pure capitalism or pure socialism in the modern world.