Capitalism or Communism Part 1

Companies, land, factories, etc. are all

privately owned.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Prices of goods/services rise and fall based

on supply and demand in a free market.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Taxation is used to equalize incomes.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Socialism

  (Command/Communism)

Individuals and companies have the

freedom to buy and sell properties,

including businesses, as desired.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Since there is little/no competition, there is

no incentive for companies or the

government to spend money on developing

better technology.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Technology improves, since the faster and

cheaper goods can be produced, the

higher the profit.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Lack of incentive to perform well on the job

results in poorer quality goods/services.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Some workers lose their jobs for poor

performance or if poor economic conditions

call for cutbacks to reduce costs.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Workers have greater job security.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Communism

  (Command/Socialism)

Environmental damage can result from

business decisions based on profit, rather

than ecology.

• Capitalism

  (Market)

• Traditional

  (Subsistence)

• Socialism

  (Command/Communism)