Capitalism, socialism and communism are all
political and economic models. In capitalist societies, products and services
are provided by the individual. These individuals employ workers and are allowed
to keep the profit from the excess production the workers create. This system incentivises individuals to come
up with ways of generating wealth for themselves. Competition between rival businesses occurs
naturally, this leads to more productivity which in turn generates wealth and advancement
for the rest of society. Karl Marx – a German Philosopher – identified
that the capitalist model created a sharp divide between the wealthiest citizens and
the poorest. He felt the system exploited the worker and
he promoted the socialist model which he hoped would later develop into communism. In socialist societies it is the government
who own and operate the means for production, i.e land, natural resources, factories etc.
The citizens earn a wage but only receive what they need. The aim of the game is equality between all
people and the elimination of social classes. Marx envisioned that a successful socialist
model would morph into communism. In communism it is the working class who own everything and what the collective produces as a whole is shared out according to need. When socialist models are applied in countries some fundamental issues with the system come to light. As socialism does not reward the individual
to produce more than anyone else there is no incentive to think outside the box and
find ways of creating more production and therefore more wealth. This then leads to low production which then
creates mass poverty. No country has ever developed into a communist
country in the strict sense of what communism means. Countries which have adopted socialism has
seen rampant corruption with people in power abusing their positions. Instead of working
toward a society where they can give up their power they instead work to consolidate it. However there are countries who have seen
success combining both capitalist and socialist ideals. For example Northern European countries reward
the individual for excess production but a heavy system of taxation helps redistribute
wealth amongst the collective so even though everyone may not be equal there is a certain
standard of living that all citizens will enjoy and social and class differences are
not so extreme. And that in a nutshell is capitalism, socialism
and communism explained. As always this is a simplified explanation,
designed to be a springboard for further study. I hope enjoyed this video and remember to
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