The main difference between Capitalism and Communism is that in Capitalism the System of government is democratic whereas, in Communism, the system of government is Totalitarian.
Further Explanation:
If we talk about a market system under capitalism, every business as well as individual works in its own interests and focus on their own profits based on their decisions. The role of the government is restricted to provide and enforce the rules of law the same was as the economy but it never interferes with the market. The factors of production under capitalism are privately owned and all the transactions related to the economy take place in the market and businesses as well as employees are given free hand to pursue their own self-interests.
The communism market is an economic sector in which the government has power over most of the factors related to production and it decides the allocation of resources. Another major characteristic of a communist economy is that they mostly focus on the country’s self-reliance and it is against any foreign investment or trade. Countries like Russia and China follow the communism market system.
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Answer Details:
Grade: High School
Chapter: Communism and Capitalism economy
Subject: History
Keywords: Communism, Capitalism, Economy, Market, Trade, Government, Control, Russia, China, Market System.
