There are four main economic systems that are widely used in the world today – capitalism, socialism, communism and mixed. These economic systems have clear definitions and ideologies. However, more often people get confused about the two economic systems, socialism and communism. Despite the big differences, the two are often used synonymously. That’s why we’re here, to clear up your confusion.
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In this article we will learn about the differences between socialism and communism.
What is the meaning of socialism?
Socialism is one of the four main economic systems. Merriam-Webster defines socialism as “any of the various egalitarian economic and political theories or movements that advocate collective or state ownership and management of the means of production and distribution of goods.”
Simply put, socialism is a political and economic theory characterized by social ownership of the production and distribution of goods and services.
In an ideal socialist economy, the rights to produce and distribute goods and services are owned by the state. The government also provides basic services, such as health care, education and transportation.
For example, China and North Korea are socialist economies.
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What is the meaning of communism?
Merriam-Webster defines communism as “a system in which goods are jointly owned and available to all as needed.“
Simply put, communism can be explained as a political and economic system in which the production and distribution of goods, products and services is fully owned by the community.
Communism is based on the ideas of Karl Marx and Friedrich Engels, who believed that true equality could only be achieved in a communist economy. In theory, communism may seem like an ideal economic system, however, in reality, a communist state has never been successful.
For example, the Soviet Union was a communist economy.
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Socialism vs. Communism: What are the differences?
Both socialism and communism reject capitalism entirely and focus on empowering the community as a whole. Now that we have cleared up the definitions of socialism and communism, let’s learn the differences between them:
- Socialism is defined by social ownership of the means of production and trade, as well as the creation of goods and services for consumption. In contrast, communism aims to create a classless society in which all members of the community own and control the means of production.
- In socialism, the means of production such as factories, farms and mines are owned by a democratically elected government. In communism, the means of production are fully owned and controlled by the community. While people can own private property in a socialist economy, it does not exist in a communist economy.
- Income is distributed more equitably under socialism than under communism since the government takes a larger portion of the income and uses it to fund social programs such as health and education. Income is distributed more equitably under communism due to the fact that everyone is equal, with no difference between the rich and the poor.
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SOCIALISM |
COMMUNISM |
|
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Ownership of means of production |
Owned by the state. It also allows partial public ownership. |
Complete abolition of private property. |
|
Class differences |
Different economic and social classes |
A classless society |
|
Economic structure |
Market economic system |
The market has been replaced by government. |
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Examples |
China, North Korea |
Soviet Union |
We hope that this article was able to explain the differences between socialism and communism.
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Source: newstars.edu.vn