Communism vs. Capitalism in the New Millennium

By Tony Cantu

As we enter the new millennium the forces promulgating and shaping the manner in which we live as a civilized society continue.

In 1848, written in Brussels, Karl Marx and Engels Manifesto of the Communist Party, later described at length in the three volumes of Das Kapital published in 1867, claimed that since for a long continuance the working people (the proletariat) had been oppressed and exploited by the middle-class (the bourgeoisie), ultimately in the final struggle the overthrow of capitalism was inevitable.

Communist utopia (from the Greek term "ou topos" which means "no place") has appeared in writing since the time of Plato.  The modern doctrine and practice of communism has, as its aims, economic, political, and social justice for all people.

Marx and Engels claimed that a classless society would then emerge without the need of more revolutions.  Everyone would be guided by the dictum "From each according to his ability; to each according to his needs."  The state, or organized government, would no longer be needed and would "wither away."

In utopia, the "Manifesto of the Communist Party" is, in fact, very seducing.  Statements such as "social justice" or "From each according to his ability; to each according to his needs", sound, in fact, very appealing.  However, one of the practical problems Karl and Engels inconspicuously overlooked in their Manifesto was the most significant, the mere nature of the human being.

The statement "From each according to his ability; to each according to his needs" obviously implies that in a communist system there has to be "per se," a clique of persons performing two critical tasks: evaluating each individual's abilities and determining each individual's needs.

First of all, a major consequence of this implication is that the individual nature of the human being is literally taken away.  The individual no longer controls his abilities nor his needs, but as property of the state, submits his individuality for that of the determination of the state.

Secondly, a ruling dictatorial clique, which determines the fate of each individual within the communist system, ultimately emerges with total ruling powers.

It is, therefore, that in practice, like a cone standing on its tip, Communism is an unstable system, which, invariably and inevitably, swirls into a totalitarian government, let it be Stalinist, fascistic or neo-nazi.

In contrast, the word economics comes from a Greek word meaning "household management," which is the performance of the tasks and services that allow a family to survive and prosper.  Thus economic functions are activities devoted to satisfying the primary needs of food, clothing, and shelter; needs that are common to all human beings.  Economic functions also satisfy desires for goods and services that are not genuine needs, but that people in a prosperous society want.

One of the ways goods and services are provided is through an economic system called "capitalism."  Other names for this system are free market economy and free enterprise.  All three terms were made in the late 19th and the early 20th century to describe economic arrangements that began developing in Europe several centuries ago.

The word capital refers to what are called factors of production.  These include the money, land, buildings, and machinery that it takes to operate an enterprise such as a factory or farm.  The "capitalist" is the individual (or group of individuals) who supply the money to get the enterprise going.

The other two terms, free market economy and free enterprise, put a slightly different slant on capitalism.  They have in common the word free.  The implication is that people have the individual liberty and the right to own property and to do what they wish with their property (as long as it does not harm anyone else).  These freedoms set capitalism apart from all other kinds of economic arrangements.  While other systems take a top-down command and control in which personal freedom and the rights of property are sacrificed for the good of the state, the capitalist system is based in giving each individual the freedom to better (or worse) him/herself.

In the context of capitalism, the term private property has a specific definition.  It signifies the means of production.  A farm as property is the means by which food is produced; and a factory as property is the means by which durable goods are produced.  The heart of capitalism is the producer's right to make what he wants and the consumer's right to choose what to buy.

Capitalism is society organized as a market, in contrast to society organized as government and subjects.  Money, land, machinery, labor, channels of distribution, and buying and selling all work together to form such a market.  Some institutions, notably government and religion, should stand apart from the market; but they also depend upon the wealth it creates for their well-being.  Taxes, for instance, are portions of wealth taken from society to pay for government functions.

The division of labor, price, profit, and rules have worked together to establish a society, now on a global scale, connected by an intricate network of market relationships.  This market system was unplanned.  It evolved slowly, as did the rules by which it operates.  The market is a product of spontaneous human action but not human design.  People, impelled by nature to maximize their well-being, created what proved to be workable arrangements that augmented individual and social prosperity.  The market system does not depend on people sharing the same values, belonging to the same ethnic group, or having the same religion.  It does not even depend on their liking each other.  It is rooted only in the common desire to improve the material conditions of one's life.

Supporters of capitalism declare that economic freedom is the most basic of human liberties.  Yet the market system has been strongly criticized by opponents who claim that it has not provided an equally high standard of living for all.  The claim is true: there are inequalities of wealth under capitalism, although they are much less than under other systems.  Success in a free market depends in large part on individual effort and ability and effort and ability are unevenly distributed among human beings.

The goal of equality of wealth can only be pursued by force, and governments must do the forcing.  The economy itself has no mechanisms of coercion available to it.  Yet the 20th-century systems that have relied on force, such as Communism, have badly failed to achieve a high standard of living for any but a ruling minority.  But these are not economic systems; they are political systems.

The market economy, by contrast, does not guarantee equal outcomes for all.  It tries to maintain liberty and equality under law for all participants.

As the new millennium crosses the bounds of time, we must decide how we want to live, either by the rule of government dictating our every move, or by the rule of our own individual freedom.


Tony Cantu has been an activist in the conservative movement and human rights since the early age of fifteen.  This article is composed of the author's writings and several articles and encyclopedias.