Free Enterprise vs Communism

Communism vs. Free Enterprise

Free enterprise and communism are completely opposite economic models of each other. Free enterprise is defined as an economic system in which private business operates in competition and is mainly free of state control. Communism is a socioeconomic system that is structured upon the common ownership of the means of production.

In communism, the government controls everything. Communism is a political and economic doctrine that aims the replace private property and a profit-based economy with public ownership and communal control of at least the major means of production and the natural resources of a society. Communism is a higher and more advanced form of socialism, according to some people. Before the Russian Revolution of 1917, socialism and communism were synonyms, both referred to economic systems in which the government owns the means of production. The two terms later diverged due to the political theory and practice of Vladimir Lenin. The most famous person to write about communism and define its ways is a man named Karl Marx, where he states that there is two forms of communism. One form that he mentions is a transitional system in which the working class would control the government and economy, and the other form is where the society would be free of class divisions or government.

Free Enterprise is known as an economic system in which few restrictions are applied to business activities and ownership. In this system, the government has minimal ownership of enterprises in the market place. The aim for this economic system is for limited restrictions on trade and minimal government intervention with the businesses. In the Free Enterprise system, government tries to stay out of things as much as possible, which makes it easier for the people to create businesses and keep them running and obtain a unique supply of goods. Most free enterprise systems are actually a modified type of system. In the modified version, the...