This system advocates the amalgamation of the business sector and government ostensibly in the interests of the community, to prevent the exploitation of the community by the capitalists (entrepreneurs). It was the belief of Karl Marx that the government should administer everything through a planned economy which would provide the community with all its requirements and that money would not be required. Everyone would share equally in the production of goods and services. This has never happened in its intended form.

These were high ideals that require men of outstanding capability and exceptional integrity.Marx forgot the human factor and he forgot the freedom of the people. The system provides the leadership with an ideal opportunity to create a dictatorship, autocratic or otherwise. Marx vision was that money would not be required and goods would be taken freely by the community. People need freedom to choose what they want and money gives them that freedom. No one implementing the communist system has in fact got rid of money. The saying that power corrupts and ultimate power corrupts ultimately applies. The centralizing of all power in the government with the actual planning of all production and the distribution of goods and services with the necessary allocation of work, accommodation and all associated services is a task of mammoth proportions. In addition it opens thedoor to favours and corruption on a grand scale.

It is very easy to manipulate the system to provide an echelon of government officials who are exceptionally rich with the majority of the community falling into the category of poor and peasants. The system can create the very wealthy people it is set up to eliminate, however the wealth is often built up through devious means and not through the business acumen of the capitalist.

Having total power means that the government can stay in power through its control of the defence forces, police and justice departments. It opens the door for a one party state.


A system that favours free enterprise and the encouragement of the entrepreneur to build business and accumulate wealth. The emphasis on money and the ability of business to raise money or borrow money to expand. The object of business is to make profits. The businessman will use the cheapest means possible in order to expand his margins. The government responsibility appears to ensure competition exists which helps to keep prices down. The tax systems developed along the lines of earnings and benefits and who can afford to pay.

Karl Marx criticised the system because the business men accumulated vast wealth and influence. Because the system concentrates on freedom and business it often forgets the people of the community and more often forgets the role of the worker as a consumer.


Has the freedom advocated by the Capitalist but the tax system provides the incentive to government to ensure that the community has work and a good standard of living. It needs to allow for democratic elections without the fear of creating a dictatorship. The business sector has freedom to operate and government ministers are there to give guidance rather than dictate terms. The tax system ensures that the government will look after the community.