Macroeconomics

Communism

Published Jun 25, 2023

Definition of Communism

Communism is a political theory and social movement advocating for a classless society where all property and resources are publicly owned and controlled. Communism’s goal is to create a society where everyone shares the same social and economic status, regardless of their background or abilities. In a communist society, every individual contributes to the common good, and resources are distributed according to the individual’s needs.

Example

The most explicit example of a communist state is the Soviet Union. After the Russian Bolshevik revolution in 1917, the Communist Party took over and established a one-party state aimed to create a socialist society. The Soviet government nationalized all property, including farms, factories, and other industries. As a result, the state had complete control over the economy and allocated resources according to central planning instead of market demand.

In theory, communism promised many benefits such as a more equitable distribution of wealth, equal opportunities for all individuals, and the eradication of poverty. However, in practice, communism resulted in a lack of individual freedoms, economic inefficiencies, and widespread corruption that ultimately led to the Soviet Union’s downfall.

Why Communism Matters

Communism still matters today despite the Soviet Union’s downfall. The sheer scope and impact of communism on the 20th century make it an essential topic of study for political science and economic history. The study of communism allows us to better understand the impact of ideology on policy-making, the tension between individual rights and state power, and the role of government in managing social and economic life. While communism has failed as an economic system, it remains a critical movement that inspired many historical events, political movements, and social changes across the globe.