COMPARE AND CONTRAST 2 COUNTRIES Free Essay Example, 1500 words

Capitalism entrusts those profits to the entrepreneur or industrialist who invested substantial amounts of money as capital in the firm (Young & Kent, 2004). To maintain these dfferent operations, both systems have different governments to oversee them. Communism holds that the citizens are not above the society. In any circumstance, the good of the society has to be esteemed above the personal needs of the citizens. Capitalism is different because it esteems individual freedoms above all other collective forms of partnership. Essentially, capitalism has an ingrained economic system that is basically self-regulated while in communism, the financial system has to be supervised by the ruling government for it to be able to function as it was intended. Another economically-related factor that demonstrates the difference between communism and capitalism has to do with production processes. In regards to capitalism, private citizens are entrusted with making decisions about price structure and manufacturing limits. In communism, though, it is the government, or community which makes decisions about price structure. Capitalism is based on the efforst of individuals. In capitalist nations such as the United States, from a young age, citizens are taught that their personal effort is the only thing that has the power and capacity to change life and improve the economy. We will write a custom essay sample on COMPARE AND CONTRAST 2 COUNTRIES or any topic specifically for you Only $17.96 $11.86/pageorder now Communism is different because it extols collectivism. Communism encourages its citizens from a young age to believe in the power of equal sharing in all circumstances. This means that it is only through the sharing of jobs that communities can acquire benefits (Harasymiw, 2010). While communism has been responsible for the downfall of different national economies, it was first created in an effort to bring more stability to nations by brigding the gap between the rich and the poor. This is why, unlike capitalism, communisn does not support the acquisition of private property. Communism basically seeks to establish a class-less society in which there are no rich or poor citizens as all people are believed to be equal owners of the community resources. The American government has always sought to encourage the development of free trade in all nations that it seeks to influence (Suri, 2011). The communist system embraced by the Soviet Union sought the opposite by shielding itself as well as all the nations under its influence from global commercial activities. While successive ruling governments in the Soviet Union claimed that this was to protect the system of communism from contamination by Western values, the real reason for refusing to engage in international commerce was to revent Soviet citizens from being exposed to genuine viewpoints which would question the validity of the claims of the totalitarian regime, thus eroding their power.