Socialism vs Communism vs Capitalism

capitalism vs socialism vs communism graphic

The structure of society and government are two of the most important things a father can start teaching his children. This topic “Socialism vs Communism vs Capitalism” should be considered a basic building block to a child’s education which will lead on to some more pertinent questions in life, such as: Why do some people struggle to put food one the table while others don’t? or Why does daddy have to work so much?

The following article will firstly explain the three in their purist forms but please remember that as soon as humans get involve nothing can exist in purity so what we see today in most western cultures is a mix of capitalism and socialism.

Depending on which side of the productivity fence you sit on (net producer or net consumer) is which end of the capitalism vs socialism spectrum you will naturally find yourself leaning towards.

Purist Capitalism

First up we need to clarify some typical misconceptions. Capitalism (also socialism and communism) is just as much an economic system as it is a cultural system of civilization.

The primary mechanism which drives capitalism is free trade between private businesses. That means the ability for private businesses to do business in any way they see fit with other private businesses. The name comes from the need for these private business to hold their own private capital (I.e. factories, work premises, machinery, farms etc.) in order to control their own destiny.

The Market forces of supply and demand will efficiently and fluidly dictate the value of the good/service in negotiation.

In other words both buyers and sellers act in their own self-interest. The sellers will produce the goods as efficiently as possible to be able to sell at a lower price, beat the competition and gain more market share. Whilst, the consumers will buy the best goods at the lowest prices without any brand loyalty.

Importantly under this model of capitalism (in its purist form) the government has no control over how businesses are.


In the best of circumstances capitalism will encourage private enterprises to take on the risks associated with innovation and hence drive progress and technological advances in the name of profit.

One last consideration is that this system is not only a top down model but also a bottom up model. e.g. a person’s labor and productivity is also freely traded on the open market; if a person is highly skilled and highly sort after their labor rate will reflect such demand and scarcity.

Corrupted Capitalism

Capitalism really took hold during the industrial revolution. Industrial capitalism (as it became known) took over from mercantile capitalism to fund the growth of machinery, factories and equipment which led to the gains in productivity and bigger profits for the capitalists.

Of course nothing can exist in a pure form so capitalism becomes corrupted. Below I am going to explore some criticisms and flaws that capitalism has exposed.

1. Disproportionate wealth distribution – Plenty of people have publicly expressed their distaste for the three tiered class system that resulted from industrial capitalism. It is human nature to want more, to want what someone else has got or to want to cut down the tall poppy but with the large scale wealth that was created by such a small group of people corruption soon followed.

money controlMarket corruption and market domination of course led to monopolies but the real corruption came in social experimentation and agendas of social engineering. Click on the prior link to delve into these corruptions in more depth.

In addition, the manipulation of economic systems by the elite capitalists for profit led to such wide spread corruption of wealth that money is no longer has a material value. It was way back in 1971 that the American became stopped being backed by gold. Since then, the value of the dollar is essentially artificially created by supply and demand.

2. Work conditions and slavery – The industrialists squeeze on efficiency led to a sacrifice of workers conditions to get more profits. Safety became an expense whilst labor became a commodity. At its worst labor was turned into slavery and human life became a material item devoid of consciousness.

Next we are going to take a look at the socialist aspects of economies and cultures. Strap yourself in this is where the world really comes Grey and all your thoughts of black and white, right and wrong, good and evil can be discarded.


Purist Socialism

So the socialist system (modern socialism that is; the way we know it today) was devised as a way of dumbing down industrial capitalism.

The roots of socialism go right the way back to any collection of people who banded together and tried to overpower any other group of people.

raining-moneyThe modern socialist movement took stride during the height of industrial capitalism. It’s intended target was all those factory owners are cashing in, living large on the back their technology assets.

The end goal of this socialist agenda became a balance between too much private productivity (aka wealth generation for the elitists at the expense of the workers) and widespread anarchy leading to civil war.

In this model the major means of production is controlled by government (supposed to be the workers) in order to level out the distribution of wealth

There is still private wealth and private assets but there is also now public assets and public wealth achieved by a redistribution of private wealth through taxation. Governments were the mechanisms by which taxation took its grip. Somehow democracy (as a form of government) was supposed to be the means by which the workers (people) controlled the governments who in turn controlled the public wealth and public assets. What a failure that has become!

Looking beyond the economic system of socialism there is the social construct. Social movements were born with the express aim of changing the fabric of society. Feminism took root in a bid to change the gender politics but soon became a means for the capitalists to get more workers into the workforce (and further drive down labor rates). Of course no one really sees the blatantly obvious though.

Corrupted Socialism

feminist-misandryThere is no clean way of started this section. Everywhere I look in the modern culture you see signs of exaggerated and excessive socialism. I could rant on for weeks but I won’t. Here is the top 5 as I see them today.

1. Over-inflated governments and nanny states.

2. Gynocentrism, Feminism, Welfare State & over-penalising the productive to reward the lazy

3. Political Correctness and control of language (aka freedom of thought)

4. Fear mongering – Fake news etc devised to create a constant threat. Used to control the weak and gain more power for governments

5. Mass Distraction, Dumbification of the people, Collapse of Education systems and Isolation of people from knowledge/history.

Purist Communism (Marx and Engels version)

Communism as defined by Marx and Engels is considered an end goal. A communist society is one where there is no government, no money, and no private property, but instead people work in communal workplaces producing goods which are distributed to whoever needs them.

Communism is a form of socialism.

cooperativeIt is also worth noting that Karl Marx was a philosopher, not a dictator or some sort of communist war lord like a lot of people will have you think. Read his book called the Communist Manifesto and educate yourself.

Looking at the above definition I think you will agree that this version of a utopia is ideal but extremely hard to achieve within the typical constraints of human nature.

A misconception when it comes to communism is the difference between communism and a dictatorship. They are not the same. A dictatorship is a form of government (a democracy is also a form of government) whilst communism is a system of economy & cultural. If you have any form of government (Democratic or dictatorship) you do not have a puritan communist system. A capitalist or a socialist society can just as easily be controlled by a dictator as a communist society can.

An important derivative of communism is that social classes vanish which is supposed to lead to an environment whereby conflict between people (aka classes) becomes redundant.

Marx nominated the mechanisms to achieve such a society would be a revolution. A revolt whereby the working classes take control of the society (vote themselves into power or take it by force) and remove the upper class systems then promote social ownership and an end to capitalism.

There is a lot of conjecture whether socialism and communism are facets of each other. Have a good look at the info graph I created above and I hope you can see as I do that socialism, communism and capitalism are all extreme ends of one three sided spectra.

Two significant groups of people working on such systems are the Ubuntu movement and the Zeitgeist (based on the Venus Project of Jacque Fresco).

Here is a short clip to illustrate a concept.


Corrupted Communism

Corrupt dictatorship’s are the first things that come to mind when the word communism is uttered. This is due to all the propaganda campaigns during WW2, hopefully you are too young to still be influenced.

As I said earlier dictatorship is a form of government but communism is a form of economy/culture. Apples and Oranges.

Governments are used as a means of implementing the economy/cultural systems only.

Fascism is the opposition to Marxism. I won’t delve into that now. Follow the link to real Wikipedia’s take or let me know in the comments below if want me to explore Fascism.



money-manIn very simplistic terms the difference between pure capitalism and pure socialism is the level of taxation and blanket redistribution of wealth from the upper classes to the lower classes. The mechanisms for doing this are varied but include government interventions, market restrictions, society and cultural changes, legislation, seizures and penalties for the productive to provide welfare for the non-productive (in economic terms).

America (as is all western cultures) is a mix of socialist and capitalist systems.

Marxist communism is a utopia (similar to how ancient cultures operated before money) that seeks to create a culture without money, government or private property.

Governmental structure has nothing to do with cultural and or economic systems. Whilst the aim of governments are mostly to enforce minority control over the masses (for the purposes of wealth redistribution to the upper classes) the government itself is a mechanism within a system not the system itself.

There are a lot more dynamics at play when you try to weigh up capitalism vs socialism. Here are a few more final thoughts.

Productivity vs Apathy = Capitalism vs Socialism?

In a strongly capitalist society the most productive people are the ones who are going to build their business most, profit the most from doing the best business and prosper the greatest. They will become the tall poppies that the socialists want to tear down. On the bottom end of the spectrum the most critical and the least productive workers are the ones who stand to gain the most from greater taxation of the wealthy. Social movements like feminism has swung the pendulum of control backwards and forwards along the lines of capitalism vs socialism. Welfare (aka free money for the most non-productive capitalists) systems have brought about volcanic debt levels which threaten to bring down the society again.

{I say again because a lot of people have theorized that it was also an over-inflated welfare system that brought about the collapse of the roman empire too}.

Individuality vs Collectivism = Capitalism vs Socialism?

collective vs individual facesThe power of socialist collectives vs individual wealth.

In some respect capitalism is a game of every man for them self whilst socialism is the bigger the group you can form the more power you can gain.

Unfortunately human nature dictates that it is the weakest link within any group that will dictate the nature of the group. For a group to be united they all need to be dumbed down to the intellect of the dumbest person. Hence, you will see the rise of some really stupid social justice groups in the future.



If you don’t have the knowledge to see the world for what it really is you will find yourself one of the many types of slaves that economic and cultural systems love to create. The chances are that if you are reading this you were not born into an upper class family so you will not be given the big picture and entire set of life lessons from your elders whilst you are young enough to forge a decent life path.

In some small way I hope I can light that fire within you can change that trajectory.

Please share this post with someone, comment below, ask a question and generally take some action. Any action. I dare you.





4 Replies to “Socialism vs Communism vs Capitalism”

  1. Remy,

    I almost don’t know where to begin. While I appreciate you more sublime descriptions of the three economies, reality is what it is. Utopia does not, will not and frankly cannot exist in what is your term, its purest form. Since the beginning of time, Humana have wanted power over other humans.

    I am a capitalist and will never embrace the other forms of economic distress. The other forms, socialism and communism have failed everywhere and left a trails of misery. Look at Venezuela. The USSR was bound to fail, people want to be free! NK, China are all holding on to economies that are failing. China has been a communist/capitalist country for years and it is predicted to collide within the next decade.

    Sorry, but I am not in any way shape of form happy to “share the wealth” with those who are not producers.

    The battle for the heart of the US in on right now. The Party out of power wants it power back! And, it will destroy all the progress that has been made, so they can continue to steal our money.

    Utopia? LOL. Capitalism is the only economic path that has lifted millions out of misery and poverty.

    Your youtube video reminds me of the UN’s Agenda 21 where the political elites will STILL be in control of the people. No Thanks!

    1. Hello Jacqueline,

      Judging from your response you on the more educated and enlightened end of the scale of my readers.  If you want to isolate the conversation just to capitalists there is a lot of conversations going around as to why has capitalism failed (probably a backlash still from the GFC) and why so many “capitalists” are fleeing america. 
      Have a look at the soaring rate of people handing in their american passports of the last few years, strange movements are afoot.
      There is a big difference between capitalism and what America is today. Socialist politics seems to have taken a hold. Debt followed.

  2. helooo dear, thanks alot for such an concised and amazing post, it really has been amazing. it brought me back to government class, when i kept on reading it, thanks for the info, i will surely do some recommendations, i believe these is exactly what i need to take my business to the next level so as to get more people on my channel thanks alot for the info ill surely do some recommendations

  3. There as been a lot of debate about this for a long time and for my own opinion I feel, there as been a lot of good things about both but it all depends on the how it treats is subordinate and the affair of the state are run. If the populise are okay with it then it okay. Thanks for sharing this great review here with us 

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