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Capitalism vs. Communism

In: Historical Events

Submitted By Violistgirl
Words 1022
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Liberal capitalism was as well known and tried system in Great Britain during the 19th century. However, around the late 19th century a new system began to appear, communism. These two systems were quite different when it came to their political and economic views. This new system gave rise to some believing that maybe it was time for Great Britain to change their former system of liberal capitalism to one that is more communist in nature. Others believed it was better to leave the system as it was. To decide on which would be better for the country one must first look at the ideas that lay behind both liberal capitalism and communism. One had to delve into the core of both systems and discover not only the positive implications, but also the possible negative implications as well. The term liberal capitalism is one that was well known throughout Great Britain. It was a system based upon the individual. It was a system that was primarily driven by free enterprise and the existence of classes. The government had very little say in what the market was like; this was known as a free market. The primary view was that this was the best form of economic system due to the fact that the individuals themselves set the amount of production and the prices of those products. David Ricardo believed that the wages received naturally fluctuated to meet the minimum subsistence requirements for workers. As he stated, “The market price of labour is the price which is really paid for it” (“Ricardo on Wages”, 2). He believed that allowing the market to regulate itself allowed for workers to make the money required for their survival and was most beneficial to the economy. Another strongly supported ideal of liberal capitalism was the belief that people benefit more from being allowed to function on their own. Samuel Smiles advocated the fact that the best thing institution can do…...

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