The documentation below defines capitalism, socialism and communism and finalizes the work with a comparison and contrast between them.
Capitalism is the economic system that dominated the western world after feudalism demise, characterized by corporate or private ownership of capital property by investments determined through private prices and decisions distribution and production of goods defined by competition mainly. Capitalism regulates everything for the citizens’ benefit while raising debt and tax. It promotes liberty, freedom, allows for optimum individual contribution through ingenuity. It also allows for promotion of individual charity from own will, decision or fortune. In short, it would do no harm concluding capitalism thinkers (Ebenstein, William and Edwin, 23).
Communism involves the idea of having a revolution to overthrow rich capitalists who tend to exploit the employees. It replaces them with a community where all individuals share and own everything equally. In an ideal communist world, the practice is similar to that practiced by Christians in the Bible, Acts 2, where even money gets no allowance. It is extremely complicated to have communism working in a large society, but it can work for a small group in the society, like a country, unless an adequate convincing is done to make citizens buy the idea. Communism opens the gates for those interested in power to practice dictatorship. Communism owns its subjects even if it means death to 10 million of individuals in search of the better future. It has the disadvantage of destroying the economy, terrorizing and enslaving people, making them disappear, not fitting in the elite society.
Communism brings the sad demise of personal freedom, individuality, and ingenuity and kills those who stand out from the statist mentality. Diversity is the key reason, which renders communism unsuitable for the role as the best or core economic system for most modern economy.
Socialism sits between capitalism and communism. It can be defined as the mode of ownership of key industries guided by the benefit/good of the people. It should not be confused with a welfare city although both work out together. It is hard to define socialism as socialists themselves argue how far it should extend. It hampers liberties and freedoms while still promoting many states producing over dependence on others. Mental entitlement is created under communism and tyranny, leading to snatching of money from the genuine earners and therefore, disabling charity.
There is an outstanding humor that if one mixes socialism and capitalism, Britain emerges. They believe that they are capitalists, but with nagging feelings that they cannot do their best for the poorest as it seem like a civilized manner. Excessive social security leads to laziness, making it hard to create a balancing act for those who cannot work. Unlike socialism that promises everything and gives little, capitalism does not promise anything, but it gives the opportunities to earn the desired values.
Capitalism is considered as the most appropriate foundation of any large and diverse nation. It is accompanied diversity and open competition. All this depends on the freedom of expression with proper education and free access. Capitalism may be supplemented through local basis on communistic support of culture, families, religion, and social organizations. Preparedness for the needy times is incremented also encouraging the local culture’s diversity. It forms the most inherent and stable system of the economy (Ebenstein, 102). All the benefits of capitalism are drawn from external competition and diversity. For a capitalistic economy to be considered healthy, it has to provide built-in incentives to all its members with the aim of increasing their participation in the economic system.