Lect. 1.

3 Difference between Communism and Socialism

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Communism and socialism are economic and political structures that promote
equality and seek to eliminate social classes. Sometimes, the two are used
interchangeably, though they are quite different. In theory, socialism and
communism sound appealing, with everyone doing their share and working
together to provide for the greater good. Each utilizes a planned production
schedule to ensure the needs of all community members are met. They are
utopian economic structures that some countries have tried; however, most have
failed or become dictatorships, making reform nearly impossible.

In a communist society everything is owned by the working class and everyone

works toward the same communal goal. There are no wealthy and poor classes.
Instead, all are equal. Production from the community is distributed based upon
need, not by effort or amount of work. It is expected that basic needs for each
worker are met by the community, and there is no more to be obtained through
working more than what is required. For example, if a worker puts in more time at
work, he sees no additional reward, and production is minimally affected. The
worker receives the same stipend and ration as before. Therefore, this type of
economy often results in poor production, mass poverty and little advancement.
This occurred in the 1980s to the Soviet Union when poverty became so
widespread, and rebellions and revolutions caused a dissolution of the nation.

Socialism shares similarities to communism but to a lesser extreme. As in

communism, equality is the main focus. Instead of the workers owning the
facilities and tools for production, workers are paid and allowed to spend their
wages as they choose, while the governing body owns and operates the means
of production for the benefit of the working class. Each worker is provided with
necessities so he is able to produce without worry for his basic needs. Still,
advancement and production are limited because there is no incentive to achieve
more. Without motivation to succeed, such as the ability to own an income-
producing business, workers' human instincts prohibit drive and desire that is
produced through such incentives.

Both communism and socialism are near opposites of capitalism, with no private
ownership and class equality. In capitalism, reward comes naturally without
limitation to workers who exceed the normal minimums. When there is excess
production, the owner can freely keep it, and he has no obligations to share his
spoils with anyone else. A capitalist environment facilitates competition, and the
result is unlimited advancement opportunity.

In modern society, many countries have adopted pieces of socialism into their
economic and political policies. For example, in the United Kingdom, markets are
allowed to fluctuate rather freely, and workers have unlimited earning
potential based on their work. However, basic needs like healthcare are provided
to everyone regardless of time or effort in their work. The welfare programs like
food stamps in the United States are also forms of socialist policies that fit into an
otherwise capitalist society. To stay on top of the latest macroeconomic and
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