What is Communism?

  1. Remove profit motive from all the “means of production”: That means all factories, shops, companies etc. should not earn any profit OR in other words should either deposit the profit with the Govt or distribute all profits among workers. The justification is: every product is a “crystallized form of Human labor”. And since without labor nothing can be built, all profit should go to people who labor.
  2. Work according to capacity and take according to necessity: Lets take the example of a capable entrepreneur. If (s)he is not allowed to reap the results of his skills and ability, why would he try to work hard, make investments, take risks and build start-ups?
  3. Ownership of all means of production shall be with the Govt: Govt shall have a monopoly and supremacy over all industries, companies etc.

What is capitalism?

  1. Capitalism accepts the reality that profit motive is a basic human nature: It accepts that it is fundamental to human nature to make profits.
  2. RULE OF LAW: A capitalist economy allows people to make profits BUT within a “framework of laws and regulations”.
  3. Equality before law and Equal protection of law: A capitalist economy accepts all are equal before law. All business establishments, irrespective of their ownerships, are governed by the same laws.

Then why eventually the communist countries became corrupt?

  1. All industries are owned by Govt and become Govt. monopolies.
  2. Without competition the Govt. monopolies became inefficient and customers suffered.
  3. For preventing customers going looking out for newer vendors the Govts disallowed all competition which resulted to customers suffering still more.
  4. We have seen, all communist nations are ruled by a singe party which eventually become dictatorships (like North Korea, China and Vietnam etc.).
  5. Hence, any businessman needs to be close to the ruling dictator for doing any busies with the Govt owned enterprises. This resulted to the rise of an economic system called “PLUTOCRACY”.

Today we see all communist nations are ruled by corrupt PLUTOCRATS with a dictator at the head.

Since the PLUTOCRATS have deep influence on the ruling elite:

  1. Extreme corruption is seen in communist nations.
  2. There is no concept of rule of law.
  3. Customer interests suffer due to monopolies and lack of competition.
  4. Cartelization (where few companies join hands and exploit the customers) is very prevalent.
  5. No mechanism for promoting competition.
  6. Communist countries are typically war mongering and expansionist in order to divert the public attention from the corruption scandals by the plutocrats.

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