Running Head: ECONOMIC THEORIES
For this discussion, please identify and discuss two of the major differences
between Marxism and Capitalism. In your discussion, provide specific examples of
how each are implemented or used today (cite your sources as necessary).
Marxism Versus Capitalism
Marxism is an ideology attributed to socio-economists Karl Marx and Friedrich Engels.
It revolves around the promotion of communism and the exploration of the effects of social class
stratification on the economy. Here emphasis is given to public, and communal ownership of all
the sectors of the economy. Capitalism, on the other hand, applauds the privatization of the
economic institutions. Here the concept of free market economy is upheld. The economic growth
rate is controlled by the elites of the private sector and is regulated by the government to prevent
the rise of monopolistic markets. Forces of demand and supply are also in play within such
markets (Kowalik, 2014). Communists are keen on social welfare. Thus labor is given depending
on ability and is paid according to one’s living standards. Capitalists are eager on economic
growth rather than social welfare. Capitalists tend to favor competitive individuals thus
promoting uneven distribution of opportunities, and resources especially among the marginalized
populations (Payne, 2004).
Today, communistic ideologies are applied to the economy through taxation, and
government budgeting, aspects that promote the centralization of resources for the benefit of the
masses. In communist countries such as China, the economy is centralized. Therefore, the
government controls all income and distributes profits according to the needs of the public.
Capitalism can be seen when large corporate players are allowed to own unlimited resource such
as Samsung which accounts for a large percentage of South Korea’s economy. This is because
the enormous multinational has been allowed to expand and capitalize on growth rather than
social welfare. However, its corporate social responsibility plans are an indication of
communism whereby it cares for the society without any direct monetary benefits (Przeworski,
Kowalik, T. (2014). Imperialism, and the Process of Capitalist Decline. Rosa Luxemburg,
Payne, S. G. (2004). The Spanish Civil War, the Soviet Union, and Communism.
Rethinking Class, and Class Politics After Communism: Avoiding Marxist
Determinism, and Totalization. (n.d.). Marx, and Modernity, 367-369.
Przeworski, A. (1986). Capitalism, and Social Democracy (Studies in Marxism, and Social
Theory). Cambridge: Cambridge University Press.
Reply to students, 100 words is more than good.
William - Monday, March 12, 2018, 12:31 PM
There are many differences between Capitalism and Marxism one being that Capitalism was a political system the slowly grew,
and molded into what we see today, through changes in technological progress, along with other social and political feelings the
propped up over a long period of time. Whereas Marxism is a system that was created by humans, to feed their desire to take
control every political and social developments.
Another major difference between the two political systems is the freedoms that their citizens receive. In. For example the
citizens living within a capitalist government, they are free to pursue their ideological, scientific, religious, and economic goals
without any interference from their government. A government that practices the capitalist system, should only be responsible for
guaranteeing safety and equal freedoms to everyone. On the other hand, in Marxism freedoms and rights are highly restricted, for
example there is no right to own land, and the freedom of expression is non existent. In Marxism, these things are taken away,
because it was believed that citizens having those rights and freedoms, were not within the best interest of their society.
Kowalczyk, H. A. (2015, November 11). Capitalism, Socialism, and Communism. Retrieved from Huffington Post:
by Kimberlyl - Monday, March 12, 2018, 9:09 PM
One of the biggest differences in Marxism and Capitalism is that capitalism creates competition between companies, services,
and people while Marxism creates equal among the people.
An example of capitalism in the United States take for example a local grocery store sells their eggs for $.22 a dozen. The
grocery store across the street normally charge $1.99 a dozen, however now there is a sign saying HyVee eggs $.22 a
dozen. This is to create a competition among the stores. I have also seen this with gas prices to draw people to their store.
Another difference is possibility of production within a government. By this I mean that in a capital government, people are paid
by the hour or on a salary basis. In a Marxism government, people are paid by the amounts set by the government. For example,
if the people are promised to be paid to produce a certain number of houses, then why would you make more if you are not going
to be paid more for building more houses.
Kowalczyk, H. A. (2016). Capitalism, Socialism, and Communism. Retrieved from Huffington
Post: https://www.huffingtonpost.com/henryk-a-kowalczyk/capitalism-socialism-and-_b_8523486.htmlr difference is that
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