Communism definition,pros, cons, examples gas bubble disease


In communism, central planners replace the forces of competition and the laws of supply and demand that operate in a market economy. They also replace the customs that guide a traditional economy. Difference Between Communism, Socialism, Capitalism, and Fascism

Communism is most similar to socialism. In both, the people own the factors of production. The most significant difference is that output is distributed according to need in communism, and according to ability under socialism. Communism is most different from capitalism, where private individuals are the owners. It is similar to fascism in that both use central plans. But fascists allow individuals to retain factors of production. Many countries turned to fascism to ward off communism. Attribute

Communist command economies can wholly transform societies to conform to the planner’s vision. Examples include Stalinist Russia, Maoist China, and Castro’s Cuba. Russia’s command economy built up the military might to defeat the Nazis. It then quickly rebuilt the economy after World War II. Disadvantages

The most significant disadvantage of communism stems from its elimination of the free market. The laws of supply and demand don’t set prices, the government does. Planners lose the valuable feedback these prices provide about what the people want. They can’t get up-to-date information about consumers’ needs. As a result, there is often a surplus of one thing and shortages of others.

Communist countries are China, Cuba, Laos, North Korea, and Vietnam. They aren’t pure communism but are transitioning from socialism. That’s where the state owns the components of supply. According to Marx, that is a necessary midway point between capitalism and the ideal communist economy. Modern communist societies rely on a mixed economy.

China. In October 1949, Mao Tse Tung established the Chinese Communist party. In the late 1970s, China began moving toward a mixed economy. It phased-out collective farms and allowed private businesses. But it still strictly follows a five-year economic plan. The government’s policies favor state-owned enterprises in sectors vital to its goals. In 2010, China became the world’s largest exporter. In 2016, it became the world’s largest economy.

Cuba. In April 1960, Fidel Castro proclaimed the Partido Communista de Cuba to be the ruling party. The Soviet Union gave economic support to the impoverished country. In return, Cuba supported it patron in the Cold War against its neighbor, the United States. After the fall of the USSR, Cuba suffered. In April 2011, it began allowing economic reforms. Cubans can now buy appliances, cell phones, real estate, and cars. More than 400,000 Cubans have created their own businesses. For example, farmers can now sell goods to hotels.

Laos. In 1949, the nation won independence from France. In 1986, it began decentralizing control and encouraging private businesses. It’s created tax incentives to encourage foreign direct investment. It wants to expand its economy beyond exporting its natural resources.

North Korea. In1953, its allies China and Russia helped create it to end the Korean War. The country followed strict central planning, with communal farming. It suffered famine and poor living conditions in the 1990s and 2000s. In 2002, it allowed semi-private markets to sell some goods.

Vietnam. In 1945, communist leader Ho Chi Minh declared Vietnam independent from France. The French, backed by the United States, seized southern Vietnam. Ho, backed by China, took the northern part. In 1954, the French agreed to divide Vietnam at the 17th parallel. But in 1964, Ho led Viet Cong soldiers to reunite the country. In 1975, the communists were successful. In 1986, Vietnam began transitioning towards a more market-based economy. It still needs to reform state-owned enterprises, reduce red tape, and increase financial sector transparency.