Ep. 5 Communism VS. Socialism VS. Capitalism: What’s the Diff?
The terms “socialist” and “communist” are often confused, thanks in large part to the Cold War. Layer on top of that the nuance of the term “democratic socialist,” which is how Sanders describes himself, and it’s easy to see why people might generally be confused.
HOW TO BREAK IT DOWN VERY SIMPLY:
In a COMMUNIST country, the government decides who can own property (generally no one, but them), how much products will cost, how many will be made, and where it is made.
In a CAPITALIST society, the people make those decisions. The businesses, the market decides how much products will cost, how many there are, where it will be made.
In the SOCIALIST system, there’s a mix. The government operates the system to help all, but there is opportunity for private property and private wealth.
WE LOVE ‘COMPASSIONATE CAPITALISM‘
Compassionate Capitalism: Notable economic successes. Nordic countries focus on combining a free market system with several social programs.
The government benefits DID NOT create the wealth of these nations—the wealth of the populous created the government benefits.
The wealth and prosperity of these countries allowed compassion for ALL citizens to be a value they could deliver with their wealth: free education, free health care, and a guaranteed pension program for retirees. For this to take place, the citizens must place an enormous amount of trust in their government and their policymakers- which is probably the biggest barrier in the United States.
FOR COMPASSIONATE CAPITALISM TO WORK: The economy, work, and welfare must work hand-in-hand. Policymakers must address ever-changing social challenges and then pass solutions through a democratic process.
Places like Sweden and Norway have cut the gap between the rich and the poor while still preserving the basic benefits of capitalism. These countries DO NOT bail out companies. EVER. Even if they are an icon. That is the free market principle. Capitalism at its finest.
Whether it is the ‘Green New Deal’ or ‘Healthcare for All’, most of the left-sided plans for change get silo’ed into a socialism bucket as a naughty word. Is it socialism? And what does it have to do with communism? Spoiler Alert: It Does Not… All these questions and more discussed on this episode of Midwest Misfits.