The Communist Economic System

A communist economic system is an economic system where, in theory, economic decisions are
made by the community as a whole. In reality, however, attempts to establish communism have
ended up creating state-driven authoritarian economies and regimes which benefit single party
political élite who are not accountable to the people or community.

Communist theory was developed by a German philosopher in the 1800s named Karl Marx . He
thought that the only way to have a harmonious society was to put workers in control. This idea
was established during the Industrial Revolution when many workers were treated unfairly in
France, Germany, and England.

Communist Ideology
The Hammer and Sickle represents the communion of the peasant and the worker.

 Marx did not want there to be a difference in economic classes and he wanted class struggle to be
eliminated. His main goal was to abolish capitalism (an economic system ruled by private
ownership). Marx abhorred capitalism because the proletariat was exploited and unfairly
represented in politics, and because capitalism allows the bourgeoisie to control a disproportionate
amount of power. Therefore, he thought that if everything was shared and owned by everyone, a
worker’s paradise or Utopia could be achieved.

Together with Friedrich Engel, a German economist, Marx wrote a pamphlet called the
Communist Manifesto. This was published in 1848 and it expressed Marx’s ideas on communism.
However, it was later realized that communism did not work. Most interpretations or attempts to
establish communism have ended up creating state-driven authoritarian economies and regimes
which benefit single party political élite who are not accountable to the people at all.

Command Planned Economy

An economy characterized by Command Planning is notable for several distinguishing features:

1. Collective or state ownership of capital: capital resources such as money, property and

other physical assets are owned by the State. There is no (or very little) private ownership.
2. Inputs and outputs are determined by the State: the State has an elaborate planning
mechanism in place that determines the level and proportions of inputs to be devoted to
producing goods and services. Local planning authorities are handed 1 year, 5 year, 10 year
or, in the case of China, up to 25-year plans. The local authorities then implement these
plans by meeting with State Owned Enterprises, whereby further plans are developed
specific to the business. Inputs are allocated according to the plans and output targets are set.
3. Labor is allocated according to state plans: in a command planning economy, there is no
choice of profession; when a child is in school (from a very early age), a streaming system
allocates people into designated industries.
4. Private ownership is not possible: under a command planning system an individual cannot
own shares, real estate, or any other form of physical or non-physical asset. People are
allocated residences by the State.
 5. Prices and paying for goods and services: prices are regulated entirely by the State with
little regard for the actual costs of production. Often a currencydoes not exist in a command
planning economy and when it does, its main purpose is for accounting. Instead of paying
for goods and services when you need to buy them, you are allocated goods and services.
This is often also called rationing.

In western democratic and capitalist societies, the price mechanism is a fundamental operator in

allocating resources. The laws of demand and supply interact, the price of goods (and services)
send signals to producers and consumers alike to determine what goods and quantities are
produced, and helps determine what the future demands and quantities will be.

The law of demand states that the higher the price of a good or service, the less the amount of that
good or service will be consumed. In other words, the quantity of a good or service demanded,
rises when the price falls and falls when the price increases.

Communism, Its Characteristics, Pros, Cons, and Examples

What It Is, How It Works, Comparison to Capitalism and Socialism

Communism is an economic system where the group owns the factors of production. In countries,

the government represents the group. The means of production are labor, entrepreneurship, capital
goods, and natural resources. Although the labor force aren't legally owned by the government,
the central planners tell the people where they should work.

German philosopher Karl Marx developed the theory of communism.

He said it was, "From each according to his ability, to each according to his need." In his view,
capitalistic owners would no longer siphon off all the profits. Instead, the proceeds would go to
the workers.

To Marx, "From each according to his ability," meant people would work at what they loved and
did well. They happily contributed these skills for the good of all. The economy would prosper
because they would work harder than in capitalism. 

"To each according to his need" meant the community would take care of those who couldn't
work. It would distribute goods and services to everyone as they required them. Those who were
able to work would be motivated by enlightened self-interest.

Ten Characteristics of Communism in Theory

In the Communist Manifesto, Marx and  co-auther Friedrich Engels outlined the following 10
points: 

1. Abolition of property in land and application of all rents of land to public purposes.

1. A heavy progressive or graduated income tax.

2. Abolition of all right of inheritance.
3. Confiscation of the property of all emigrants and rebels.
4. Equal liability of all to labor. Establishment of industrial armies especially for agriculture.
 5. The combination of agriculture with manufacturing industries. The gradual abolition of the
distinction between town and country. This will be achieved by a more equable distribution
of population over the country.

1. Free education for all children in public schools. Abolition of children's factory labor. The
combination of education with industrial production.
2. Centralization of credit in the hands of the state. It would own a national bank with state
capital and an exclusive monopoly.
3. The state would control communication and transportation.
4. The state factories and instruments of production. It would cultivate wastelands and
improve the soil. This would follow a common plan.

The manifesto mentions state ownership in its last three points. That makes even this pure vision
of communism sound like socialism. But Marx argued that state ownership is a valid stage in the
transition to communism. 

In a true communist economy, the community makes decisions. In most communist countries,
the government makes those decisions on their behalf. This system is called a command economy.
The leaders create a plan that outlines their choices. It's executed with laws, regulations, and
directives.

The goal of the plan is to give to "each according to his need."  Communist countries have
free health care, education, and other services. The plan also seeks to increase the
nation's economic growth. It secures national defense and maintains infrastructure.

 The state owns businesses on behalf of the workers. In effect, the government owns a monopoly.
The government rewards company managers for meeting the targets detailed in the plan.

In communism, central planners replace the forces of competition and the laws of supply and
demand that operate in a market economy. They also replace the customs that guide a traditional
economy.

Difference Between Communism, Socialism, Capitalism, and Fascism

Communism is most similar to socialism. In both, the people own the factors of production. The
most significant difference is that output is distributed according to need in communism, and
according to ability under socialism. Communism is most different from capitalism, where private
individuals are the owners. It is similar to fascism in that both use central plans.

But fascists allow individuals to retain factors of production. Many countries turned to fascism to
ward off communism. 

Attribute Communism Socialism Capitalism

Factors of production are
Everyone Everyone Individuals
owned by
Attribute Communism Socialism Capitalism
Factors of production are Usefulness to Usefulness to
Profit
valued for people people
Allocation decided by Central plan Central plan Law of demand and supply
From each according to his Ability Ability Market decides
Income, wealth and
To each according to his Need Contribution
borrowing ability

Advantages

Communism has a centrally planned economy. It can quickly mobilize economic resources on a
large scale. It is able to execute massive projects and create industrial power.

Communism can move so effectively because it overrides individual self-interest. It subjugates the
welfare of the general population to achieve imperative social goals.

Communist command economies can wholly transform societies to conform to the planner's

vision. Examples include Stalinist Russia, Maoist China, and Castro's Cuba. Russia's command
economy built up the military might to defeat the Nazis. It then quickly rebuilt the economy after
World War II.

Some say communism's advantages mean it is the next obvious step for any capitalistic society.
They see income inequality as a sign of late stage capitalism. They believe that capitalism's flaws
mean it has evolved past its usefulness to society.

They don't realize that capitalism's flaws are endemic to the system, regardless of the phase it is
in. America's Founding Fathers included promotion of the general welfare in the Constitution to
balance these flaws. It instructed the the government to protect the rights of all to pursue their idea
of happiness as outlined in the American Dream. It's the government's role to create a level
playing field to allow that to happen. That can happen without throwing out capitalism in favor of
another system.

Disadvantages

The most significant disadvantage of communism stems from its elimination of the free market.
The laws of supply and demand don't set prices, the government does. Planners lose the valuable
feedback these prices provide about what the people want. They can't get up-to-date information
about consumers' needs.  As a result, there is often a surplus of one thing and shortages of others.

To compensate, citizens create a black market to trade the things the planners don't provide. This
destroys the trust in Marx's pure communism. People no longer feel the government can give "to
each according to his needs."
Communist Countries

The last five remaining Communist countries are China, Cuba,  Laos, North Korea, and
Vietnam. They aren't pure communism but are transitioning from socialism. That's where the state
owns the components of supply. According to Marx, that is a necessary midway point between
capitalism and the ideal communist economy. Modern communist societies rely on a mixed
economy.

China. In October 1949, Mao Tse Tung established the Chinese Communist party. In the late
1970s, China began moving toward a mixed economy. It phased-out collective farms and allowed
private businesses. But it still strictly follows a five-year economic plan. The government's
policies favor state-owned enterprises in sectors vital to its goals. In 2010, China became the
world's largest exporter. In 2016, it became the world's largest economy.

Cuba. In April 1960, Fidel Castro proclaimed the Partido Communista de Cuba to be the ruling

party. The Soviet Union gave economic support to the impoverished country. In return, Cuba
supported it patron in the Cold War against its neighbor, the United States. After the fall of the
USSR, Cuba suffered. In April 2011, it began allowing economic reforms. Cubans can now buy
appliances, cell phones, real estate, and cars.  More than 400,000 Cubans have created their own
businesses. For example, farmers can now sell goods to hotels.

Laos. In 1949, the nation won independence from France. In 1986, it began decentralizing
control and encouraging private businesses. It's created tax incentives to encourage foreign direct
investment. It wants to expand its economy beyond exporting its natural resources.

North Korea. In 1953, its allies China and Russia helped create North Korea to end the Korean
War. The country followed strict central planning with communal farming. It suffered famine and
poor living conditions in the 1990s and 2000s. In 2002, it allowed semi-private markets to sell
some goods. 

Vietnam. In 1945, communist leader Ho Chi Minh declared his country's independence from

France. The French, backed by the United States, seized southern Vietnam. Ho, backed by China,
took the northern part. In 1954, the French agreed to divide Vietnam at the 17th parallel. But in
1964, Ho led Viet Cong soldiers to reunite the country. In 1975, the communists were successful. 
In 1986, Vietnam began transitioning towards a more market-based economy. It still needs to
reform state-owned enterprises, reduce red tape, and increase financial sector transparency.

Other Examples in History

In 1922, the Union of Soviet Socialist Republics was established with six communist countries:
Russia, Belorussia, Ukraine, and the Transcaucasian Federation. In 1936, the Federation became
Georgia, Azerbaijan, and Armenia.

By 1992, when it dissolved, the USSR contained 15 countries. The remaining nine were Estonia,
Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.

In 1955, the USSR created the Warsaw Pact with other communist military allies. They

included: Albania, Bulgaria, East Germany, Hungary, Poland, and Romania.
The USSR had many other communist allies. Many became communist in the 1970s, but shifted
to another form of government after the USSR collapsed. They
included: Afghanistan, Angola, Benin, Congo, Ethiopia, Mongolia, Mozambique, Somalia, South
Yemen, and Yugoslavia.

Cambodia was a communist country from 1975 to 1979. In his misguided attempts to create an
agricultural communist society, he killed 2 million people.

Economic Systems: Capitalism, Communism, and Socialism

An economic system consists of the institutions and the method by

which resources are allocated and products and services are
distributed. Economic systems differ primarily in who owns
the factors of production, how the allocation of resources is directed
and the method used to direct economic activity. The primary
distinction between the different systems is the degree to which the
government participates in the economy.

Communism

Communism, also known as a command system, is an economic system where the

government owns most of the factors of production and decides the allocation of
resources and what products and services will be provided.

The most important originators of communist doctrine were Karl

Marx and Frederick Engels. Like the socialists before them, they wanted to end
the exploitation of the masses by the few. The capitalist system at that time required
workers to work under harsh and dangerous conditions for little pay. The end goal
of communism was to eliminate class distinctions among people, where everyone
shared equally in the proceeds of society, when government would no longer be
needed.

Karl Marx agreed with Louis Blanc in how labor and income should be
managed: "From each according to his abilities, to each according to his
needs." However, it seems clear from history that Adam Smith had the correct
principle, which is that people work in their own self-interest.

Marx and Engels believed that there was a class struggle between the masses, which
Marx referred to as the proletariat, who could only offer their labor, and the owners
of the means of production, which included land, raw materials, tools and machines,
and especially money. Karl Marx called these members of the ruling class
the bourgeoisie. He believed that a political revolution was essential because the
state was a central instrument of capitalist society, and since the bourgeoisie had a
stranglehold on the government, it would, in many cases, be necessary to use force
and violence to overthrow the capitalists.

Although Marx and Engels believed that property should belong to society, they did
not really give much thought to how economic decisions would be made.
 Communist countries, particularly Russia and China, decided on a centrally
planned economy (aka command economy). The centrally planned economy had
the following major attributes:

 The government owns all means of production, which is managed by employees

of the state.
 These employees operate under party-appointed economic planners, who set
output targets and prices and frequently interfered with the operations to satisfy
personal or party desires.
 And because communist economies are not efficient and because of the
Communist Party's desire to retain power, most economic resources were devoted
to industrialization and to the military, depriving consumers of food and other
necessary products, causing intense competition for these limited necessities,
where many people had to wait in long lines for common consumer goods, such
as toilet paper.

Another major feature of communist economies was their emphasis on the country's
self-reliance, discouraging international trade and investment.

Major decisions were made by the highest-ranking members of the Communist

Party, which, in the Soviet Union, was the Politburo. The Politburo frequently met
with the Central Committee that consisted of the heads of the local Communist
Party factions and government ministries, the military, police, and other major
participants in the economy.

Although the purpose of communism was to serve the needs of the proletariat,
communist governments simply became repressive regimes that exploited their
people to aggrandize their own power, exploiting the masses even more so than the
capitalists.

Capitalism

As long ago as 1776, the Scottish philosopher Adam Smith set down many of the
main principles of capitalism in his now classic book An Inquiry into the Nature and
Causes of the Wealth of Nations.

Under capitalism (aka market system), each individual or business works in its

own interest and maximizes its own profit based on its decisions. A market
economy is one where the allocation of resources and the trading of goods and
services are through the decentralized decisions of many firms and households.
The equilibrium between supply and demand determines prices, which determines
economic output, which, in turn, determines the allocation of resources.

The market system fosters competition that generally produces the most efficient
allocation of resources. In pure capitalism, also known as laissez-faire capitalism,
the government's role is restricted to providing and enforcing the rules of law by
which the economy operates, but it does not interfere with the market. (Laissez-
faire means "let it be.")
 The essential characteristics of capitalism are that:

 the factors of production are privately owned;

 economic transactions take place in markets, where buyers and sellers interact;
 businesses and employees are free to pursue their own self-
interest and are motivated to do so by the potential to earn a
profit;

Because consumers are free to buy what they want, the competition for their funds
will require businesses to satisfy their needs, or else they will cease to exist due to
lack of sales. This consumer sovereignty is what effects the efficient allocation of
resources.

The main purpose of the government in regard to the economy is to promote free
markets, keep inflation low and steady, protect the rights of private property, and to
guarantee contracts, which are necessary to conduct business.

Socialism

The definition of socialism varies widely, but it can be described as an economic

system between communism and capitalism. Like communism, socialism seeks to
redistribute the wealth more equitably by the communal ownership of natural
resources and major industries, such as banking and public utilities. Socialists also
seek to nationalize monopolies, which greatly enrich their owners at the expense of
the proletariat. However, unlike communism, most small or nonessential enterprises
would remain privately owned. Also unlike the Communists, most socialists do not
advocate violence or force to achieve their economic system.

Economic Systems of the Future

History has amply demonstrated that communism and socialism retard the growth of
economies, because there is no competition between businesses, and the people who
manage such businesses are often political appointees, chosen more for their social
and political connections than for their understanding of the businesses that they
manage. Furthermore, large industries are often under the control of many
bureaucrats, who often issue conflicting demands. They care little about whether
society wants their product or service, and do not care as much about costs, since
these costs are paid by the government.

To illustrate how inefficient communism is compared to capitalism, consider the

difference between the 2016 Gross Domestic Products of Germany and Russia:

2016 GDP

Germany  $3,477,796,000,000

Russia  $1,283,163,000,000
 Russia is, by far, the largest country in the world, with a landmass slightly
exceeding 6,600,000 mi.², and natural resources proportional to its landmass. It also
has a population of 144,370,000. By contrast, Germany's land area is 137,879 mi.²,
with a population of 83,249,000. And despite Russia having a landmass almost 48
times that of Germany, with proportionally greater natural resources, and a much
larger population, Germany's GDP in 2016 was 2.7 times that of Russia! Although
Russia is a major military power, it is an economic midget: it achieves its military
prowess by devoting a much larger percentage of its GDP to military spending,
which is why most of the people in Russia live in relative poverty. Other small
countries with a GDP larger than Russia include: Japan, United Kingdom, France,
Italy, and even South Korea.

Or consider the difference between North and South Korea:

The Stark Contrast Between the Lights of Civilizaion and the Darkness of Poverty

As can be easily seen from this 2014 nighttime photograph from the space station, the lights of
civilization are conspicuous in South Korea and China, but virtually absent from North Korea.
The contrast is especially stark along the border separating North and South Korea. Indeed, most
of North Korea looks like the ocean at night.

Of course, this stark contrast doesn't simply result from the difference between pure communism
and pure capitalism, for such systems are nonexistent. The poverty in North Korea is created by
their political leaders using the very limited resources of North Korea to help their leaders
maintain political power. Kim Jong-un is diverting considerable resources to the production and
testing of nuclear weapons and missiles to carry them, to develop the capability of destroying the
United States that will serve as a deterrent to any attempt to topple his regime. That his people are
suffering because of this massive diversion evidently does not faze him. Or, he may be seeking to
use nuclear weapons to blackmail the rest the world, especially the United States. After all, after
he develops hydrogen bombs and the missiles to carry them, what else can he do with them? His
economy will still be in shambles, and since communist economies generally don't do well
without, at least, some degree of freedom, it will probably be the only means of improving the lot
of his people.

North Korea, Cuba, Russia, and China are really, more or less, dictatorships who promote the
ideals of communism as propaganda, to convince the people that the government's exploitation of
them is for their own good. However, the governing kleptocrats have no intention of ever
relinquishing their power. In these dictatorships, it is the government exploiting the people rather
than the capitalists. Here again, Adam Smith was right, people work for their own interest,
including those in government. By allowing the government to own the means of production, they
can also use that means to enrich themselves and their cronies at the people's expense. What Karl
Marx did not realize is that government leaders are the same as capitalists, many of whom exploit
who they can to enrich themselves. Even in the United States, lobbyists continually try to
influence Congress and the president to pass laws in their favor, which is always at the expense of
everyone else. (After all, if the laws were in the best interest of the people, then special interests
wouldn't have to spend so much money to influence politicians to do otherwise, since,
presumably, politicians would actually vote in the people's interest.)
 Communism and socialism give great power to a few individuals who then become
obsessed with retaining their power, even at the tremendous expense of society. For instance,
Cuba and North Korea are almost completely communistic, and even though the Communist
governments in both countries have controlled their countries for years, their people remain mired
in abject poverty. Consequentially, the people of Cuba and North Korea are mere economic slaves
who are used to enrich the communist dictators of these countries.

The other major problem with communism and socialism is that not only are the
major leaders almost completely ignorant of economics and of the needs or wants of their people,
but it is very difficult to remove them, in spite of their detriment to the economy. Even when a
communist, such as Hugo Chávez in Venezuela, is elected in a democratic election, his primary
goal is to retain his own power, even as the economy crumbles around him, because of gross
mismanagement.

Capitalism works best because it promotes competition so that only the most
efficient businesses survive. Survival requires that the business owners be knowledgeable about
their business and able to manage it effectively, that they can minimize costs to produce their
product or service, and that they know what people want. Otherwise, the business will fail, as
most do.

Thus, capitalism provides the best means of achieving the efficient allocation of the
factors of production and providing society with the goods and services that it most desires at the
lowest possible cost. Capitalism maximizes the production possibility frontier, providing the
greatest benefit to society with the available scarce resources.

Drawbacks of Capitalism

Although capitalism is the most effective means of allocating

resources, it does have shortcomings, including the following:

 monopolies that can interfere with free enterprise and reduce allocation efficiency
through their pricing power;
 free markets that do not price in externalities, which is the effect that the
production of a good or service has on people that is not related to the good or
service itself, such as the creation of pollution in producing a product;
 without the direction of government, free markets do not produce public goods,
such as national defense, because public goods are non-excludable, meaning that
people cannot be excluded from the benefit, even if they paid nothing for the
public good.

A capitalist economy also requires a government to enact and enforce laws, to

promote economic stability through monetary policy, to provide services that cannot
be provided by a market system, such as a military to protect society against foreign
invaders, and to redistribute some of the wealth to poorer people, especially by
providing social security programs, such as health care, which is unaffordable for
many people. Because the government plays a prominent role in all economies, all
 capitalistic economies are considered mixed economies, combining some features
of a command economy with a market economy.

The redistribution of some wealth is necessary, because even in a capitalist

economy, some people gain tremendous wealth, then use it to influence
governments to make them even wealthier, usually at the expense of poor people.
For instance, in the United States, working income is taxed at a higher rate than
either investment income or inherited income, income that accrues mostly to the
wealthy. Although there is a progressive, marginal income tax rate in the United
States, the tax is almost a flat tax when payroll taxes are added, and since payroll
taxes do not apply to either investment income or inherited income, most wealthy
people pay a lower percentage of their income in taxes than either the middle class,
or even many of the poor, which is one reason why the top 1% is accumulating an
ever greater portion of the world's wealth.

No doubt that the science of economics will guide the development of future
economies, fine tuning them by promoting what works and eliminating what doesn't
work. But only if the influence of special interests and power grabs by
megalomaniacs can be limited or eliminated. And by understanding economics, the
electorate can avoid bamboozlement by specious advertising and talking points, and
vote for politicians that would better serve the people instead of themselves.

6 Advantages and Disadvantages of Communism

The term “communism” was derived from the Latin word meaning “universal” or “common”. As
an ideology, it encompasses social, political and economic attributes which aims to create a
society of equality devoid of social classes, money and state. Its goal is to provide education and
health care to all citizens with an ideology of common ownership. Despite its good intentions,
however, there are downsides to a communist society. Let us discuss the two sides of this
ideology.

List of Advantages of Communism

1. It embodies equality.
In a communist society, everybody is equal and no one is left alone. That is, no social class is
better than the other because there is no social class system at all. All the resources of a country
like property are under the control of the state and governed by a group that represents the masses.
As such, citizens have the peace of mind that all the people are equal. This is the opposite of
capitalism where there are businesses are owned by capitalists and employees who need to work
in order to survive.
2. It makes health care, education and employment accessible to citizens.
What is seen as a significant advantage of communism is the access it gives to people when it
comes to attending school and given medical attention. This is because in this type of ideology,
even the poorest people can attend schools and provided with health care. It also minimizes
unemployment because everybody gets equal opportunities.
3. It does not allow business monopolies.
Since the government owns and controls the business as well as allots the money to be spent for
production costs, there is no business competition and no manufacturer is better than the other.
This means manufacturers can only produce limited number of goods and are unable to demand
for higher prices for their commodities and monopolize the market.
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List of Disadvantages of Communism

1. It hampers personal growth.

One of the setbacks of communism is its being too controlling on the lives of the people. Since it
is a classless society, everyone is equal in social status and no one is above the other. This can
also be a disadvantage since people will feel they are at the end of the road because there is no
room for personal improvement. In Cuba, for example, all medical professionals, medicines and
hospitals are controlled by the government. The fees of these professionals are regulated by the
government and they cannot demand for higher fees.
2. It dictates on the people.
In a communist society, the government has the power to dictate and run the lives of people.
Although its goal is one of equality, there is basically less or no personal freedom at all to criticize
the government or demand for changes. Moreover, there is no freedom of speech and whoever
goes against the government can be subjected to punishments.
3. It does not give financial freedom.
Another setback of communism is the fact that entrepreneurs cannot expect to make more money
than the others. As opposed to a free market economy, the command economy which is practiced
by most communist countries ties the hands of business people. Consequently, it is hard to get rich
in these countries.

15 Major Advantages and Disadvantages of Communism

Communism is a political theory which was derived from the work of Karl Marx. He advocated
for class war within a society which would eventually lead to all properties being state-owned
instead of private ownership. Then each person would be paid according to the needs of their
community and their unique skills and abilities.

Marx took his theories from ideas posed in the 18th century by French writer and philosopher
Victor d’Hupay.

This form of government falls within the spectrum of socialism structures. Instead of common
ownership belonging to the people, however, the government retains absolute control over every
national resource. That reduces the impact of social classes and money, but it also limits
individual freedom and decision-making opportunities.

These are a list of the most significant advantages and disadvantages which come from this form
of government.

List of the Advantages of Communism

1. It reduces the impact of socioeconomic differences in society.

When Communism is enforced by the government, everyone except the top tier of government
officials is on the same footing. There are few distinctions between urban or rural households.
Each person plays a contributing role to the success of the country. The differences between all
labor forms experience removal too, which means there are no “white collar” or “blue collar”
positions. Everyone works within the industry at which they are needed, creating efficiency levels
which are higher because the differences are smaller.
2. People start life off with the same opportunities.
Marx believed that democracy creates destruction over time because the “haves” would eventually
stop the “have-nots” from having access to needed resources. Lower socioeconomic groups would
go to “war” with the elites in society over income, property, and wealth. Communism eliminated
those factors, basing it on the concept that everyone should have the same chances to create a life
for themselves.Although there are exceptions to classism in Communism (namely oligarchs and
high-level government officials), you don’t get a head start in life because your family is wealthy.
You work based on what you’re good at doing and what others require.
3. Employment opportunities abound in Communism structures.
Everyone who wants a job under Communist supervision gets a job. Some people are compelled
to work because their skills are necessary for the greater good. You don’t get to stop working
because you want to live an alternative lifestyle. You do what the government tells you to do,
which is usually what you’re best at doing. There are no roles considered superior over others in
this government format. You’re either giving the instructions, setting the policy, or implementing
what you’re told to do.
Some might argue that this concept, taking from socialism, offers more equality than what a free-
market system dictates.
4. Educational opportunities increase during Communist rule.
The top priority for a Communist government when it comes to power is to offer educational
opportunities to the general public. When the Communists took over the government in China in
1949, their first task was to teach people who were illiterate how to read and write. They brought
vocational skills to urban and rural communities, showing people how to be productive in
manufacturing, agricultural, and industrial positions. This process gave people practical skills
which could be used to improve their overall quality of life – though granted, that improvement
came at the discretion of the government.
5. It creates a stronger social community.
The design of Communism works toward the full inclusion of every family structure. It eliminates
the idea of cultural or ethnic ideology as a minority, working toward the creation of a “new man”
instead. When people focus on social cohesion through their work and role in society, they
theoretically work toward a stronger nation.
List of the Disadvantages of Communism

1. Public ownership structures are easily manipulated by others.

Because there is no private ownership involved with communism, the public nature of all
properties creates a higher risk of abuse. Those who are at the highest levels of government within
this structure control the most resources. If they decide to make changes within society, then no
one can do anything to stop them. You are always at the mercy of what the governing officials
decide to do with your property, your job, and your resource accessibility.
2. Most employment opportunities are in the agricultural sector.
Communist governments restrict trade and commerce unless the needs of the State require
additional resources. When the Soviet Union existed, their trade activities with the Western
industrialized countries (the U.S., Canada, Japan, and Australia) involved either a direct exchange
of one item for another or purchases made on cash or credit. They might decide to trade vodka for
soft drinks, for example, or offer a direct cash payment for specific items they would import.
That means most employment opportunities involve the agricultural sector under Communism.
There is no society if food resources are scarce. Everyone might have a job and do something that
they’re great at, but it almost always involves this sector in some way.

3. Individual rights are not a top priority under Communist rule.

The goal of Communism, and socialism to some extent, is to increase the well being of the entire
community. This goal occurs when everyone works together for the common good. The difference
between Communism and socialism is that the latter still respects individual rights.
Communism dictates almost every goal or need of the individual. You are only free to pursue your
interests if they contribute to the welfare of the whole. Individuals receive role assignments that
shift whenever the needs of the government change. Socialism permits individuals to pursue
whatever ventures they wish after their work for the community is finished because the group self-
governs themselves without a secondary central authority in the mix.

4. Opposition is not permitted in Communism unless the central authority authorizes it.
Only one entity, the oversight state, controls the agenda, messaging, and performance of society
under Communist rule. The government controls the law at all times. They can instantly decide if
actions or conduct of individuals should become illegal, then apply those changes retroactively if
they so choose. This government format uses absolute rule over all commercial or industrial
production unless they authorize someone else to control those components of society. If you do
not receive authority to offer opposition, engage in innovation, or pursue entrepreneurism, then
there is a good chance that you have violated the law (or will be found in violation in the future).
The result meant actions like profiteering could be viewed as a counter-revolutionary activity,
which would result in a death penalty declaration. The Soviet Civil Code (much of which is still
used today by governments in China, Cuba, and other Communist states) abolished civil liberties,
protection of law, and the rule of law.

5. Communism makes no distinction between propaganda and education.

Offering education to everyone sounds like an advantage under Communism, but it creates results
in reverse. Indoctrination, education, and propaganda work together to change the perspectives of
the general population. Everything from textbooks to newspaper articles is carefully directed,
managed, and monitored to produce results. They might offer reading and writing essentials to the
general population, but in return, they ask for compliance in every aspect of life.
6. Dissent is not permitted under Communist rule.
There are three notable uprisings against the Chinese government since 1949, including the
Tibetan uprising, the Tiananmen Square protests, and the Falun Gong practitioners. Tens of
thousands of people were involved in this surge of dissent, so the government pursued a
combination of censorship, imprisonment, suppression, and “labor re-education” to stop the
activities of activists or dissidents.
Dissidents in the Soviet Union faced an even worse fate, including forced admittance to mental
hospitals, entry to a labor camp, or general exile. Because dissent was considered a criminal act, it
could result in lengthy prison sentences too.

7. There is no way to change the behaviors of the ruling group from within.
Communism bases its ideas on a totalitarian system. There are no mechanisms within that kind of
government to create change from the inside. That leaves people with two options if they find
their circumstances are growing worse: encourage an epiphany within the government or become
outspoken about the issues. When Communism encounters a voice which doesn’t support it, the
first effort involves immediate suppression through repression. People disappear frequently, even
today, because of how the government is perceived.
Forced disappearances occur when the state secretly imprisons or abducts someone, then refuses
to acknowledge their whereabouts or fate. That places the individual outside of the protection
which global laws provide. Under Communist rule, forced disappearance implies either murder or
long-term forced labor with plausible deniability.

8. It reduces levels of meaningful employment in society.

Communism doesn’t earn you a paycheck. It gives you the right to continue living with the basic
essentials and not much more. You’re not permitted hobbies because that is labor which does not
benefit society. The goal is to have you help everyone else in exchange for not needing to worry
about basic needs. The Soviet Union enforced this structure so thoroughly that they even enacted
“jean crimes” because people wanted denim clothing instead of what the government provided
everyone.

Life noted in 1972 that a single pair of jeans could sell on the black market in the Soviet Union for
a full month’s salary for the average Soviet worker.

9. Individuals are given income limits to follow.

Wealth belongs to the government when following the teachings of Communism. That means you
have limits on the amount of cash you’re able to save for a rainy day. Once you earn your capped
salary level from your employment, the remainder goes to the government for redistribution
unless specific exemptions are authorized. That provides less incentive to work harder than
needed since you’re guaranteed a specific income and nothing more. Families push their children
toward specific careers which may not have those exemptions to help them live a better life than
they are because of this structure.
10. The outcome of Communism is often poverty.
Communism might suggest that everyone benefits from its structure, but it is the opposite which
occurs most often. The government can change the rules at any time to help themselves. They
declare how much economic growth occurs, who benefits from it, and industrial emphasis in each
community. This might give the government ways to respond quickly during emergency
situations, but it also puts the population at the mercy of the whims of the State. Most people live
in poverty under Communism unless free-market exceptions, like those passed in recent decades
by China, allow for some freedoms under the structure.
The pros and cons of Communism were first offered as a way to counter the negative impacts of
democracy and free-market systems. As part of the socialism spectrum, it is arguably the most
invasive and dangerous form of government still in use today. Although there are some potential
benefits to look at from an outside perspective, the reality of this governing type is that it hurts
more people than it ever tries to help.

12 Pros and Cons of Communism

Communism is a form of government that was originally advocated for by Karl Marx and
Friedrich Engels. It has the goal of equalizing a society so that every person works and receives
payment based on their needs and abilities. All property within this structure of government is
publicly owned.
This common ownership would eliminate distinctions between intellectual and manual labor,
bridge the gap between rural and urban life, and create the potential for future human
development in every industry, category, or pursuit. This potential outcome is often seen as the
primary benefit of Communism.

The primary disadvantage of Communism is the fact that it can be easily manipulated to serve the
purpose of the state. In the original theory, Marx and Engels suggested common ownership as a
way to negate the power of the State. Governments which have implemented structures which
have been called Communism have switched the concept so that the government holds all the
common property instead of the people.

Although there has never been a pure Communist government structure implemented, we can look
at past examples to think about these additional pros and cons.

What Are the Pros of Communism?

1. Everyone gets the same chance. 

Excluding government officials for the practical application of Communism, it is a theory where
everyone should receive the same chance to build a life for themselves. There aren’t any inherent
household benefits, like existing wealth, that can give certain people an advantage. Ordinary
citizens can be come extraordinary based on their own talents and gifts.
2. Almost everyone is employed. 
In a true Communist structure, you are asked to contribute to the society as you are able. That
means almost everyone is employed in some way. Increased employment can lead to lower crime
rates, especially with a government structure which guarantees the basics of life will be provided.
No role is greater than another, which reinforces the idea of true human equality.
3. Almost everyone is educated. 
Because the goal is to improve the society as a whole, many individuals are sent through advanced
schooling so their skill sets can be improved. Although the choice of subject may be restricted and
other limitations may apply, just about everyone in a true Communist society is offered the chance
to seek out an advanced degree.
4. Agriculture and manufacturing are emphasized. 
These two industry forces tend to be the primary drive behind a growing GDP. Communism
focuses on these two areas because it provides the most needs for the fewest resources. That
builds up the infrastructure for these industries and allows for innovation to drive forward because
there is a need to produce higher yields and cheaper products to stay competitive.
What Are the Cons of Communism?

1. Individual rights are restricted. 

The goal of Communism is to have people working toward common goals and needs. For that
reason, people are not free to pursue their own interests. Their job assignments are based on what
the community requires for survival. Someone might be a great writer on comparing pros and
cons of subjects, but if the community needs an auto mechanic for the common good, then guess
what that writer gets to be? An auto mechanic.
2. There is no unauthorized opposition. 
In a Communist structure, there is one overall entity which controls the message and agenda of the
society. They have an absolute rule over the law and can even outlaw private ownership of any
capitalistic items, such as currency or property. This absolute control is bolstered by the idea that
only authorized opposition to new ideas, strategies, or work assignments may be allowed. If you
don’t agree with the direction of society, you could be imprisoned or worse.
3. People are kept in ignorance. 
The design of Communism feels Orwellian when implemented. The single party can control the
message that people receive within their country. There is rarely any contact with the outside
world that has not been screened by the government first. That means the population can think
they are informed on current events, but in reality, they are purposely kept in ignorance for the
benefit of the community.
4. Violence tends to be the only option for dissent. 
Because only authorized dissent is allowed in Communism, people who feel like their voices are
not being heard tend to resort to violence or violent rhetoric to make their point. The risks of
terrorism increase, which then increases the government response to threats of opposition. Secret
police and other forms of enforcement are then used to maintain control within the governmental
structure.
5. Earning is limited. 
There are specific caps placed on the amount of income that can be earned by individuals within
this structure of government. These hard caps make it difficult for innovation to grow because
there is no motivation to work harder. People know they need to complete a specific level of
productivity to reach their community needs and have no reason to go beyond the bare minimum
because of the compensation caps that are in place.
6. It often results in poverty. 
Communism might have the goal of uplifting everyone in a society, but in reality, it often drives
most households into poverty. The structure is easy to manipulate for government officials
because only one entity has oversight over everything in the society. One politician can tweak the
rules and laws so that their class of people receive the most compensation while still mandating
everyone else to work for virtually nothing. Communism might meet needs, but it is often only the
bare essentials.
7. No savings are allowed. 
Even if a household were to accumulate some level of wealth, that wealth belongs to the
community and not the family. There is no precedent for inheritance under true Communism
because everything belongs to the singular party, state, or government.
8. Employment may go up, but meaningful employment goes down. 
Under Communism, you’re essentially working to earn a paycheck that you’ll never really see.
You get enough to provide for yourself, but the remainder of your wages and productivity goes to
benefit the community. Many people living within this form of government aren’t following their
passions because they don’t have the final say for their career. In many instances, people just give
up trying to work and let the government provide the basics for them.
The pros and cons of Communism might be based on utopian ideas, but the outcomes tend to
example dystopian societies instead. It is a system of government that looks good on paper
because it focuses on equality and building everyone up at the same time. It is also a system that
struggles in practical application because of the demands that the party, state, or government
places on its people.
overarching