What is the main difference between capitalism, socialism and communism?

Primitive society

Let’s start with the primitive society. After reaching a certain level of historical development, people formed tribes. Then tribal leaders, or the so-called elite, stood out. As a rule, they were the best hunters or gatherers.

Later, the first technological revolution took place. Apart from hunting and gathering, people suddenly discovered agriculture.

The growth of knowledge and further development of skills caused the surplus of resources.

At that time, a tribal leader was not necessarily the best hunter. Tribes chose their leaders for other competencies. For instance, in the course of war or poor harvest he was capable of holding negotiations with neighbouring tribes and making an alliance with them in order to save vital resources and the lives of his tribesmen.

Gradually, the stratification of primitive society was becoming more and more prominent. The implementation of new technologies gave tribal leaders an opportunity to keep special people, who helped them to rule masses and protected them from external and internal threats.


For many centuries human society had been changing with varying success, until another technical revolution put an end to it. The revolution resulted in forming new classes, which made a fortune on advanced technologies. They laid claim to political power but they were denied.

As a result of several bourgeois revolutions, the ruling classes realized that …

a) they should “share their power” and

b) they should take charge of technical progress, otherwise they would be out of the running.

Thus, the monarchy and the ruling class ceased to be the greatest values of human society, their place was taken by money. If one earned money, they would do well. If one worked hard and got money, it was good. If one had workers who brought them money, it was even better. If one did not work and gained money through mediation, it was simply perfect. It would be ideal to lie on a tropical beach, surrounded by beautiful women or men (underline as appropriate) and sip a cocktail, garnished with a small umbrella. Of course, this act should not be interrupted.

As the saying runs, it is the equal opportunity society.

However, it has turned out that the ruling class can use leverage to violate pure competition or anything else, getting in the way.

Besides, equal opportunities are not so equal after all. Being wealthy and well-connected, the ruling class guarantees its children solid education and a promising career.

Any public discontent is silenced in a cunning manner. Later we will speak about it in great details.

Capitalism and ordinary people

Capitalism means that everything can be either sold or bought. However, it is not as easy as it sounds.

Capitalism, also known as the market of pure competition, is generally impossible. It is not less true for modern stock exchanges and standard products.

On the one hand, the impossibility of absolute commodity-money relations make capitalistic states build libraries, free hospitals and schools, as well as grant support and social benefits for physically-challenged people.

On the other hand, the upper classes play for high stakes. Although, they give a small initiative to masses, it still controls the crucial spheres of social life. Namely, the ruling classes adopt “convenient” laws and create other preferential advantages to level down competition. Simply put, while the lower classes are working for the upper ones and providing service for their counterparts, everything will be fine. For instance, even well-qualified workers earn 200 000 $ per year. The bulk of this money is paid as different taxes and goes to the pockets of the upper classes, which own some state companies and fulfill labour contracts.

Yet, capitalism provides the lower classes with food, accommodation, medical care and other benefits, making their lives much better than in the times of feudalism. Back then the lives of common people were dramatically short.

The cons of capitalism are that “opportunities” and “freedoms” are seriously limited. One thing can be freely discussed and the other cannot.


Red flag

Socialism is a peculiar social system. The first experiment started in Russia in 1917 and was well in advance of its time. However, real socialism was built much later.

What is the main difference between socialism and capitalism? In capitalistic society, people have their own possessions. In socialistic one, everything is owned by the state, i.e. it belongs to everyone.

In army, if one commits an offence, all squadron performs push-ups. The same scheme works in socialism. For example, if one breaks a machine tool, this worker does harm to everyone. It is a good way to discipline people.

In capitalism a person searches for a job.

Socialism makes it simpler. For instance, there is a plan on 200 000 engineers this year and only 150 000 the next one. That way future becomes plain and clear.

Education is free. After-school professional profiling is guaranteed. Besides, people can change their profession whenever they like.

The state gives them a job. Gradually, they will get an apartment too. Free health care and other benefits turn their lives into Heaven on Earth. Before we dwell upon the cons of socialism, let’s renew the talk about capitalism.

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