Essay on Merits and Demerits of Communist Economic System

Sat, 03/16/2013 - 07:56 -- Umar Farooq

Advantages and Disadvantages of Communism

Advantages of Communism

Following are the merits and advantages of communist economic system

Elimination of Wastage of Resources. Under comprehensive State planning, goods and services are produced strictly according to need. Anohter befit of communist economy is the elimination of large-scale wastage of resources. Moreover, the cost of advertisement and business mal-practices are entirely eliminated.

Elimination of Concentration of Wealth. Everyone receives compensation which supplies his own needs only and no one has any other source of income except this compensation. It is not possible to restrain national wealth in few hands.

 Eradication of Exploitation. Since there is no opportunity to earn private profit in this system, the exploitation and economic plundering of the weak is eradicated.

 Eradication of Unequal Distribution of Wealth. Under communist economy there is no scope for gaining wealth through rent, interest or private profit. Every member of the society is a worker and receives a fixed wage. So unfair gaps or inequalities" in the distribution of wealth do not take place at all.

Provision of Necessaries of Life. In this system, the provision of necessaries of life to every citizen is the responsibility of the State. It is the responsibility of the State to provide basic necessities of life to every individual.

Immunity from Economic Crisis. In communist economic system goods and services are produced strictly in accordance with national demand. Hence there is no possibility of overproduction in this system. The danger of economic depression is completely eliminated. Moreover, the absence of interest secures the economy against several fatal maladies.

Elimination of Unemployment. In communism the process of production is kept going according to a comprehensive plan, which enables the government to provide jobs to the deserving people.

Disadvantages of Communism

Following are the demerits and disadvantages of communist economic system

End of Liberty. In this system man is treated like a slave. Economic and political power is concentrated in the hands of the government and individuals are completely deprived of freedom of thought and action.

Weakening of the Will to Work. Absence of the profit motive weakens the will of the individuals to think about and discover new techniques of work. The process of inventions and discoveries is adversely affected.

Errors in Planning. In a planned economy, goods are produced in general interest and individual likes and dislikes are not given any importance. Similarly, while determining the goals of planning the capacity and convenience of individuals are not kept in view. All decisions in matters relating to planning are taken according to official priorities and people are forced to meet the official targets.

Materialistic Concept of Life. This system is based on materialistic conception of life. It regards matter as the beginning and end and the supreme fact of life and the universe. Hence man's real problem is to -satisfy material needs and physical urges. The Materialistic conception of life is not only contrary to fact, but it degrades man from his lofty angelic position to the level of a beast. Man thus becomes a slave to his senses. Human life becomes devoid of high moral values.

Failure in Practice. The Communist system has failed to achieve its objectives in practice. In a model Communist country like Russia despite the reign of terror and oppression and lack of freedom, the level of production has fallen below the production of capitalist countries. The rich and poor classes have not been eliminated. Interest-based system also existed in this country in one form or the other. The institution of state not only did not fade away, but actually gained enormous authority and power. Consequently, more and more restrictions were imposed on individual liberty.