This document compares and contrasts capitalism and communism. It defines communism as a socioeconomic system with common ownership and no social classes, money, or state. Capitalism derives from capital, where private individuals can own capital assets and labor is purchased with wages. The document then discusses the historical origins and key figures of each system. It outlines some of the main features of each like democracy and market economy in capitalism versus single-party rule and equality in communism. The impacts, criticisms, and advocacies of both systems are also presented. In conclusion, the document suggests the world is moving toward more liberalization and capitalism while decreasing communist governments.

1. CAPITALISM
VS
COMMUNISM
BY; ASHISH GOSWAMI(A006)

2. CAPITALISM AND COMMUNISM
• Communism (from Latin communism –
common, universal) is a socioeconomic
system structured upon the common
ownership of the means of production and
characterized by the absence of social
classes, money and the state; as well as a
social, political and economic ideology and
movement that aims to establish this social
order.

3. • Capitalist is derived from capital, which
evolved from capitale, a late Latin word
based on caput, meaning "head" —in the
sense of movable property.
• The essential feature of capitalism is the
investment of money in order to make a
profit. In a capitalist economic system capital
assets can be owned and controlled by
private persons, labor is purchased for money
wages.
• Founder of capitalism.(Adam smith)

4. HISTORICAL BACKGROUND
• Actually firstly started in France…Communism
refers to‘ Marxism–Leninism' refers to an
ideology developed and propagated by by
Joseph Stalin
• Run under single-party rule, in contradiction
to Marxism's dictatorship of the proletariat,
which is a democratic state form.
Karl Marx and Friedrich Engels was
founder of communism

5. • Now, coming to capitalism …The defining
feature of capitalist markets, is feudalism, is the
existence of a market for capital goods (the
means of production), meaning exchange-
relations (business relationships) exist within
the production process. Additionally, capitalism
features a market for labor.
• . "Capitalists" are individuals who derive income
from investments. Labor includes all physical
and mental human resources, including
entrepreneurial capacity and management skills,
which are needed to produce products and
services. It is the act of making goods or services
by applying labor power

6. IMPACT ON GLOBE

7. COMMUNISM AND CAPITALISM
FEATURES
• CAPITALISM;
• DEMOCRACY
• ROLE OF GOVERNMENT
• MARKET
• COMMUNISM;
• ONE PARTY SYSTEM
• EQUALITY

8. • CRITISISM; communism
• NO liberty to
• Criticism (COMMUNISM)
• Criticisms of communist party rule is an article
dealing with criticisms of the practical policies
implemented by 20th century governments
claiming to follow the ideology of Marxism-
Leninism (these are usually called "Communist
states" in the West).
• Criticisms of Marxism is an article dealing with
criticisms of Marxist theory itself

9. • Capitalism ;Critics
• Lack of equality
• Over exploitation
• Improper distribution of wealth
• Corruption

10. Advocacies Of Capitalism
• Economic Growth
• Opportunities'
• Increased GDP

11. • Many theorists and policymakers in
predominantly capitalist nations have
emphasized capitalism's ability to promote
economic growth, as measured by Gross
Domestic Product (GDP), capacity utilization
or standard of living. This argument was
central, for example, to Adam Smith’s
advocacy of letting a free market control
production and price, and allocates
resources.

12. • Political freedom
• In his book The Road to Serfdom, Freidrich
Hayek asserts that the economic freedom of
capitalism is a requisite of political freedom. He
argues that the market mechanism is the only
way of deciding what to produce and how to
distribute the items without using coercion.
Milton Friedman, Andrew Brennan and Ronald
Reagan also promoted this view. Friedman
claimed that centralized economic operations
are always accompanied by political repression.

13. • Self-organization
• Austrian School economists have argued that capitalism
can organize itself into a complex system without an
external guidance or central planning mechanism.
Friedrich Hayek considered the phenomenon of self-
organization as underpinning capitalism. Prices serve as a
signal as to the urgent and unfilled wants of people, and
the opportunity to earn profits if successful, or absorb
losses if resources are used poorly or left idle, gives
entrepreneurs incentive to use their knowledge and
resources to satisfy those wants. Thus the activities of
millions of people, each seeking his own interest, are
coordinated.

14. OUTCOME OF THE STUDY
• World is moving, towards
liberalization and faster growth and
hence promoting Capitalism
• Their, has been subsequent decrease in
fascist and communist government all
over the world
• World is getting richer ,but wide gap
between rich and poor.

15. • THANK U…………………