human
What are the differences between communism and capitalism?
assistant
The main difference between communism and capitalism is the economic system. In a communist system, the government owns and controls the means of production and controls the distribution of goods and services. In a capitalist system, private individuals, companies, or organizations own and control the means of production and the process of selling goods and services is determined by the free market. 2 Another difference between communism and capitalism is the way goods are distributed. In a communist system, goods and services are distributed according to need. In a capitalist system, goods and services are distributed based on individual responsibility, initiative, and reward.3 A third difference between communism and capitalism is the way decisions about production and actions are made. In a communist system, the government or ruling party usually makes decisions about the production and distribution of resources. In a capitalist system, decisions are made by private individuals and organizations based on market forces. 4 The fourth main difference is the level of personal freedom. In a communist system, there is often little to no personal freedom or individual rights. In a capitalist system, there is some personal freedom and individual rights are more likely to be honored.