Capitalism

A form of economic order characterized by private ownership of the means of

production and the freedom of private owners to use, buy and sell their property or

services on the market at voluntarily agreed prices and terms, with only minimal

interference with such transactions by the state or other authoritative third parties.

Communism

1.Any ideology based on the communal ownership of all property and a classless

social structure, with economic production and distribution to be directed and

regulated by means of an authoritative economic plan that supposedly embodies

the interests of the community as a whole. Karl Marx is today the most famous

early theoretician of communism, but he did not invent the term or the basic

social ideals, which he mostly borrowed and adapted from the less systematic

theories of earlier French utopian socialists -- grafting these onto a philosophical

framework Marx derived from the German philosophers Hegel and Feuerbach,

while adding in a number of economic theories derived from his reinterpretation

of the writings of such early political economists such as Adam Smith, Thomas

Malthus, and David Ricardo. In most versions of the communist utopia,

everyone would be expected to co-operate enthusiastically in the process of

production, but the individual citizen's equal rights of access to consumer goods

would be completely unaffected by his/her own individual contribution to

production -- hence Karl Marx's famous slogan "From each according to his

ability; to each according to his need." The Marxian and other 19th century

communist utopias also were expected to dispense with such "relics of the past"

as trading, money, prices, wages, profits, interest, land-rent, calculations of profit

and loss, contracts, banking, insurance, lawsuits, etc. It was expected that such a

radical reordering of the economic sphere of life would also more or less rapidly

lead to the elimination of all other major social problems such as class conflict,

political oppression, racial discrimination, the inequality of the sexes, religious

bigotry, and cultural backwardness -- as well as put an end to such more

"psychological" forms of suffering as alienation, anomie, and feelings of

powerlessness.

2.The specifically Marxist-Leninist variant of socialism which emphasizes that a

truly communist society can be achieved only through the violent overthrow of

capitalism and the establishment of a "dictatorship of the proletariat" that is to

prepare the way for the future idealized society of communism under the

authoritarian guidance of a hierarchical and disciplined Communist Party.

3.A world-wide revolutionary political movement inspired by the October

Revolution (Red Oktober) in Russia in 1917 and advocating the establishment

everywhere of political, economic, and social institutions and policies modeled

on those of the Soviet Union (or, in some later versions, China or Albania) as a

means for eventually attaining a communist society.

Socialism

A class of ideologies favoring an economic system in which all or most productive

resources are the property of the government, in which the production and distribution

of goods and services are administered primarily by the government rather than by

private enterprise, and in which any remaining private production and distribution

(socialists differ on how much of this is tolerable) is heavily regulated by the government

rather than by market processes. Both democratic and non-democratic socialists insist

that the government they envision as running the economy must in principle be one that

truly reflects the will of the masses of the population (or at least their "true" best

interests), but of course they differ considerably in their ideas about what sorts of

political institutions and practices are required to ensure this will be so. In practice,

socialist economic principles may be combined with an extremely wide range of

attitudes toward personal freedom, civil liberties, mass political participation,

bureaucracy and political competition, ranging from Western European democratic

socialism to the more authoritarian socialisms of many third world regimes to the

totalitarian excesses of Soviet-style socialism or communism.