Question

What is the difference between Capitalism, Socialism, Communism, and Trade Unionism?

Answer 1

Communism and socialism are umbrella terms belonging to two political thinking schools of the left; both are opposed to capitalism. Since the 19th century, these philosophies have inspired numerous social and political movements. Although the policies and rhetoric of these parties vary widely, many countries have been or are currently ruled by parties calling themselves communist or socialist.

Communism as an ideology is generally considered to be hard-left, with less concessions to market capitalism and representative democracy than most forms of socialism. As a government system, communism tends to focus on a one-party state that forbids many forms of political opposition.

Socialists can be either pro or anti-market. We may see reform and the elimination of social classes as the ultimate goal, or they may pursue more realistic results, such as universal health care or a universal pension scheme. Social Security is a socialist policy implemented in the unabashedly capitalist United States (like the eight-hour working day, free public education, and possibly universal suffrage). Socialists can run for election, form coalitions with non-socialist parties, as they do in Europe, or they can govern as authoritarians, as does the Venezuelan Chavista regime.

Economically speaking, capitalism is a system that creates and allocates goods and services on the basis of the free market. It is the market that makes these crucial decisions in the economy's activity, not the government. But it's the reverse under communism; it's the government that decides what the economic priorities of society will be. Centralized planning and state regulation of output means are considered critical in meeting the needs of the people.

Capitalism needs a strong legal and regulatory system to function effectively. If they are to invest and grow, it is imperative that companies have a fair degree of certainty. In fact, properties must be protected and contracts upheld, and this can only occur if the rule of law is of paramount importance.In England, where industrial capitalism first developed, trade unionism first emerged. Then, as a natural companion of capitalist industry, it spread to other countries. There have been very special conditions in the United States. The abundance of free unoccupied land, open to settlers, caused a shortage of town workers and relatively high wages and good conditions in the beginning. The American Labor Federation became a force in the country and was usually able to maintain a relatively high living standard for the workers united in their unions.