State controls not merely productive objects and agents of production but even the objects of consumption. Land, factories, mines, means of transport etc. are all controlled by and belong to the state, and all are nationalized. The entire property of a communist country is treated as public property.

2. Distribution of Property:

Under communism, every individual is to work to the best of his ability and he is given wealth according to his needs, from the public wealth.

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The system does not admit of the exploitation of the workers. He is paid his wages according to his labour and his needs. He does not have to resort to any quarreling for it. In communism, public property is equitably distributed and effort is directed to use it for national welfare. On the other hand, the distribution of property under capitalism is extremely inequitable.

There certainly is a difference between the incomes of people even hi a communist society but not so wide as to make one a beggar and another multimillionaire, whereas in capitalism the difference between the income and financial status of individuals and classes is extremely wide. There is no limit to which an individual can increase his private property. The state does not intervene in any way because the control of the government is in the hands of the rich or their representatives. In this way, while the individual has complete freedom of all kinds and descriptions to improve, in this system there is also, at the same tune, grave exploitation of the poor helpless workers. The rich keep on getting richer and the poor keep on getting poorer. The attention of the capitalist producer is directed towards his own personal interest and not towards the national interest and for this they do not even hesitate injuring the nation.


Difference in Classes:

Due to these reasons, the standards of living and the amenities of life which classes possess are of a widely differing nature in capitalism, and this tends to increase the class struggle and harm the interests of the nation. In communism, the difference between ruler and the rifled is no doubt perceptible but not economic classes of millionaires, beggars who sleep on the roads and slum dwelling workers. It is not a fact that a person has no economic freedom under communist system. Even there too, a person can increase his personal property to some extent but he cannot exploit anybody.

On the other hand in capitalism, there is no restriction on the means to wealth.

4. Competition:

In this way, the efforts towards money making, in the economic field under the capitalists, lead to cut throat competition. Every person wants to earn the maximum sum of money.

Business organizations are created to this end. In the communist system, along with business organization and monopoly, one is not confronted with unemployment, poverty and hunger. Every person must be employed and he must labour. Besides work, he gets wealth enough for his needs.

In communism there is competition in working and the people who produce the most win recognition and awards from the state. In communism, competition in labour is encouraged in place of economic competition.


Insurance and Credit:

Insurance and credit institutions are controlled by individuals under capitalism whose objective is the personal benefit of the people who run these institutions. Communism also has these institutions, but the state has authority over them and they aim at public benefit. The public gets the opportunity to make the most use of them.

6. Control of Price Mechanism:

In capitalism, the basis of the price mechanism is the law of supply and demand. It is not controlled in any way with the result that capitalist, by virtue of monopoly and business organizations, fix any prices of commodities which suit them. In this way the public in general is exploited while the wealthy keep on getting wealthier.

The communist state controls the prices and retains them within some limit. This tends to elevate the standard of living and eliminates any possibilities of exploitation.

7. Other Institutions:

Actually one can broadly state that hi communism the government is in control of most of the institutions while in capitalism most institutions are individually controlled. Thus, under capitalism, such institutions as transport, advertisement, education, health, etc. are controlled by individuals or business concerns.

On the other hand, under communism these are nationalized and controlled by the government in the public interest.