Definition
Communism and Fascism are both political ideologies but aren’t directly related to finance. Communism refers to a socio-economic system where all property is publicly owned and each person works and is paid based on their abilities and needs. Fascism, on the other hand, is a far-right authoritarian political ideology encompassing a dictatorial power, forced suppression of opposition, and control of industry and commerce.
Key Takeaways
- Communism is a socio-economic system where all property is publicly owned and each person works and is paid according to their abilities and needs. This system promotes total equality among its populace, both economically and socially. Conversely, Fascism is a form of government which is a type of one-party dictatorship where a nation is considered more important than individuals.
- One key economic difference is that under Communism, the control of the economy is in the hands of the state or the community. This is meant to ensure that wealth is equally distributed among citizens. However, in a Fascist economy, while the state has power, it allows private property and private enterprise to exist, but under strict regulations and control to serve the nation’s interests.
- The philosophy behind these two ideologies is also largely different. Communism is based on the principles of Marxism, which advocates for class struggle and revolution to establish a society of equality. On the other hand, Fascism is strongly based on the principle of nationalism and often led by a dictatorial power, suppressing opposition, and controlling many aspects of life, including the economy.
Importance
The finance term: Communism vs Fascism is important because it represents two distinct economic and political systems with varying implications on resource allocation, wealth distribution and societal structuring.
Communism, on one hand, advocates for state ownership of resources and wealth, emphasizing equal distribution and abolishment of social class.
Fascism, on the other hand, while still maintaining a strong state control, permits a limited form of private ownership and fosters a society with hierarchical class structures.
Understanding the difference between these two systems is essential for determining the economic freedoms, investment potentials, policy approaches and societal dynamics in a given nation.
Knowing this distinction can greatly impact financial decisions, business operations and economic policies on a global scale.
Explanation
Communism and Fascism are two different political ideologies related to governance and socio-economic organization, but they can have significant implications on a nation’s financial structure and policies. Communism, embodied by states such as the former Soviet Union or Cuba, aims to create a classless society where resources and means of production are commonly owned. Its purpose is to eradicate social inequality by eliminating private ownership and distributing wealth equally among the population.
This means the state controls finances, including the major sectors of the economy, introduction of a planned economy, and centralization of capital. The idea is to significantly diminish wealth disparities and provide each citizen with access to basic necessities. On the other hand, Fascism, as exemplified by Hitler’s Germany or Mussolini’s Italy, is a far-right ideology concentrated in total authority held by a dictatorial power, suppressing opposition, and controlling industry and commerce under a central autocracy.
In fascist systems, while businesses may remain privately owned, they are heavily controlled and regulated by the state. The purpose here is to create a centralized form of government with the aim to promote the nation or race above individuals. The fiscal policies in fascist economies often prioritize military spending, national development, and can neglect social welfare, resulting in significant wealth disparities.
Examples of Communism vs Fascism
Soviet Union (Communism) vs Nazi Germany (Fascism): One of the most notable historical examples is the ideological battle between the Soviet Union and Nazi Germany during World War II. The Soviet Union, led by Joseph Stalin, practiced a form of communism where the state owned and controlled all aspects of production, and there was no private ownership. On the other hand, Nazi Germany under Adolf Hitler was a fascist state with a heavily centralized autocratic government, led by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition.
Cuba (Communism) vs Italy (Fascism): Another comparison can be made between the Cuba after Fidel Castro’s revolution in 1959 when it turned into a communist state with all resources owned by the state, and Mussolini’s Italy from 1922 to 1943, which was a fascist regime that believed in the primacy of the state, with rigid one-party control and an emphasis on nationalism.
China (Communism) vs Spain (Fascism): The People’s Republic of China, since 1949, is a communist state where major industries and sectors of the economy are owned by the government while private enterprise plays a secondary role. In contrast, Francisco Franco’s Spain (1939 – 1975) was a fascist dictatorship characterized by authoritarian state control and a nationalist philosophy. It is important to note though that these are broad strokes and the practices within these states can vary widely, but they provide a framework for understanding some of the differences between these ideologies.
FAQ Section: Communism vs Fascism
What are the core principles of Communism?
Communism is a socio-political ideology that promotes the abolishment of private ownership, and advocates for communal ownership of industry and capital. It believes that the working class should control the means of production to prevent exploitation by the capitalist class. All wealth and resources are shared equally among the populace.
What are the key beliefs of Fascism?
Fascism is a far-right political ideology that promotes a dictatorial form of government, and centralised autocratic governance held by a domineering leader. It typically includes a belief in the supremacy of a particular race or nationality, and often seeks to create a unified and regenerated national community.
How do Communism and Fascism differ ideologically?
Communism and Fascism differ significantly in their ideologies. Communism emphasizes equality and classlessness, seeking to eliminate social hierarchy. Fascism, on the other hand, celebrates hierarchy and asserts the superiority of certain classes or races over others. Fascism also promotes nationalism and often racial superiority, whereas communism seeks to eliminate national barriers.
How are the economic systems of Communism and Fascism different?
The economic systems of Communism and Fascism contrast starkly. Under communism, all property is communally owned, and each person works and is paid according to their abilities and needs. Whereas, a fascist economy allows a semblance of private property, but control and regulation is in the hands of the state. Private enterprise exists, but operates under state directives.
How has the fight between Communism and Fascism influenced world history?
The battle between Communism and Fascism has had profound impacts on world history, particularly in the 20th century. The ideological conflict played a significant role in defining the political landscape of many countries and led to several major wars, including World War II and various proxy wars during the Cold War.
Related Entrepreneurship Terms
- Economic Systems
- Governance
- State Ownership (Communism)
- Dictatorship (Fascism)
- Class Struggle
Sources for More Information
Sure, here are four reliable sources where you can find more information about the terms Communism and Fascism:
- Encyclopedia Britannica: This is a comprehensive encyclopedia that provides information on a wide range of topics including political ideologies like communism and fascism.
- History.com: This is a great source for historical facts, figures and detailed articles about various historic events and ideologies.
- The Economist: It provides high-quality news, analysis, and articles on international politics, business, science, technology and culture. Its section on geopolitical analysis could be particularly helpful.
- The Stanford Encyclopedia of Philosophy: This online encyclopedia is an excellent resource for understanding the philosophical underpinnings of various political ideologies.
