Communism a system of Economics

[Tariq Shehzad]

There are three basic systems of Economics;

1. Communism
2. Socialism
3. Capitalism

Now, we discuss about the first system of Economics.

Communism:

Karl Marx was the father of communism. The communism is society in which the people own all the nation's resources. There is no classification of the people such as the poor, the rich, higher class etc. In such a system

• Everyone contributes according to ability.
• Everyone receives benefits according to need.

The people through the government own and operate all businesses.
Central government planning determines

• What and how much of goods and services will satisfy consumers 'need?
• How to and who will produce the goods and services using what resources?
• How to distribute the goods and services produced?

No true communist economy exits today. In a first look communism appears efficient and equitable. It produce little gap between the rich and the poor. In practice communist economies have low standards of living and shortages of consumers. Russia, Poland, Hungary, and other Eastern European nations have governed by supply and demand. China , North Korea ad Cuba continue use communist principles in their economies.

In the system of Communism the resources are only utilized by the people as a nation without the discrimination of cast, creed, color, poor and rich. And every one has its right for contribution and receiving his benefits.

 

[Alexandoy]

The only type of economy that I know is capitalism in a democracy. When you have the capital then you can start your business. It is as simple as that. Although there are licenses or permits that are needed for the pursuance of the business but they are just regulatory in nature and usually all kinds of legal businesses are allowed to operate. When the business earns the share of the government is the taxes that are paid not only by the business but also by the workers of the business. That is how commerce works in a capitalistic economy. There is freedom that is called free enterprise.