Capitalism, socialism and communism are all
political and economic models.
In capitalist societies, products and services
are provided by the individual.
These individuals employ workers and are allowed
to keep the profit from the excess production
the workers create.
This system incentivises individuals to come
up with ways of generating wealth for themselves.
Competition between rival businesses occurs
naturally, this leads to more productivity
which in turn generates wealth and advancement
for the rest of society.
Karl Marx – a German Philosopher – identified
that the capitalist model created a sharp
divide between the wealthiest citizens and
the poorest.
He felt the system exploited the worker and
he promoted the socialist model which he hoped
would later develop into communism.
In socialist societies it is the government
who own and operate the means for production,
i.e land, natural resources, factories etc.
The citizens earn a wage but only receive
what they need.
The aim of the game is equality between all
people and the elimination of social classes.
Marx envisioned that a successful socialist
model would morph into communism.
In communism it is the working class who own everything and what the collective produces as a whole
is shared out according to need.
When socialist models are applied in countries
some fundamental issues with the system come to light.
As socialism does not reward the individual
to produce more than anyone else there is
no incentive to think outside the box and
find ways of creating more production and
therefore more wealth.
This then leads to low production which then
creates mass poverty.
No country has ever developed into a communist
country in the strict sense of what communism means.
Countries which have adopted socialism has
seen rampant corruption with people in power
abusing their positions. Instead of working
toward a society where they can give up their
power they instead work to consolidate it.
However there are countries who have seen
success combining both capitalist and socialist ideals.
For example Northern European countries reward
the individual for excess production but a
heavy system of taxation helps redistribute
wealth amongst the collective so even though
everyone may not be equal there is a certain
standard of living that all citizens will
enjoy and social and class differences are
not so extreme.
And that in a nutshell is capitalism, socialism
and communism explained.
As always this is a simplified explanation,
designed to be a springboard for further study.
I hope enjoyed this video and remember to
subscribe to LondonCityGirl for more interesting
and educational videos from me.


  1. Whenever people point out Norway 🇳🇴 and Nordic countries they forget that they are fundamentally Capitalist. Even the leaders of the countries came out months ago and decried they are socialist in any form.

  2. The Nordic countries are also among the most atheistic developed countries, which I have a feeling has something to do with their success. Strange how the most religious developed country, the USA, has the most massive social divide.

  3. I think you should talked about anarchy, which is also a response to the inequality and is like a communism without the socialism.

  4. But why doesn't the taxation make the richests seek for a country with less taxes, rise the costs of their products and services or low the salaries?

  5. U perfectly explained the problem with a purely socialist system. I wish you had done the same for overtly captisalist systems like US in which curroption and wealth gap creates a pseudo-democratic oligarchy.

  6. There is one thing that you missed in your video. China, North Korea, Soviet Union, Vietnam, and Cuba all did implement communism, and millions of educated as well as the rich and middle class were tortured and killed by communists in favor of classless-based society or the loss of privacy to own everything.

    True. Capitalism is just as bad as communism, since it favors only the rich owning everything at the cost of the poor and the middle class becoming poorer along with suffering and dying from a lack of resources. Capitalism is mostly implemented in the USA, Venezuela, modern Russia, modern Mainland China, and most countries out there, unlike Nordic countries that adopt more socialist ideas than most countries in the world. In this video link, there are differences between communism and socialism, and a certain number of people falsely define or tainted these terms:

  7. I understand that this is a very simplified description but the practical truth in the west is somewhat different. Today, the employer does not have the 'right' to keep all of the excess profit because the employer/employee relationship is by way of social contract in the same way as any other contract. That is to say that neither has the right to 'impose' a legal contract on the other and it only becomes legal by the agreement of both parties. An employee can revoke a contract in the same way as an employer without breaking the law. Otherwise, it is internationally deemed to be slavery. Socialism also appears when public money (the taxpayer) is used to bail-out the financial sector in a financial crash (2007/8). This is in fact inverted social-security for the capitalist system when capitalism itself would demand that the banks should fail; so you can see that in a modern society, capitalism is actually supported by socialism. Communism is very different from Socialism because the financial sector is government-run from public funds from the get-go. Anything involving support from public funds (the taxpayer), including the military, is 'socialism' unless you have a privately funded army (feudalism). Therefore, claiming that we can be either/or capitalist or socialist is an illusion; we are both but we are definitely not communist. I am not a capitalist nor a socialist but neither is anyone else. It is all political myth devised to promote the confrontational system of party politics. A better description of modern economics throughout the west would be 'social capitalism' no matter what party is in power. The alternative is communism.

  8. I’m in grade 6 and I was absent the day they went over communism and my teacher brings it up frequently. Didn’t really understand but now I do. Thanks!

  9. Didn't even get 10 seconds in, immediately you lead off saying that ALL three are political AND economic, yet I've never heard of a capitalist government unless it's a socalist/communist trying to find a reason to not like it. I live in a capitalist market society with a constitutional representative republic

    Where in there dose it say ANYTHING about the economy?

  10. The Communist Manifesto is Swiss cheese – full of holes. The ten part recommendations are all wrong. For instance, nationalisation of the land is unjust. People are born to land because of their already existing karma and consciousness. Taking that away, or making it impossible are the beginnings or continuation of inexorable conflict.

  11. I hate this refrain that socialism provides no incentives, leading to poverty. We don't need special incentives to produce enough necessities, we already want to do that. Meanwhile, capitalist incentive structures pervert that natural inclination to provide for needs and have tons of people scrambling around, wasting their time and energy trying to game the system and making stupid crap we don't need.

    Walk down the streets of any major American city and you'll see we already have mass poverty under capitalism. Where does this idea that socialism leads to poverty even come from?

  12. Karl Max was insane… You cannot under pay nore restrain the reward of a visionary after all they have gone through which the support system "workers" cannot handle. God balances the market. He parents through gifts. The big hearted get great visions of good works—righteousness and the strength to carry them out and all of these things shall be added unto them.

    Matthew 6:33

    But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.

    Alllllllll of these things shall be added unto you……… Reward….. So why now socialism and communism..

    With the exception of Health care….

  13. ̿̿ ̿̿ ̿̿ ̿'̿'̵͇̿̿з= ( ▀ ͜͞ʖ▀) =ε/̵͇̿̿/'̿'̿ ̿ ̿̿ ̿̿ ̿̿ ▄︻̷̿┻̿═━一

  14. Rich left Australia , retires left Australia to live in Asia . High taxation democratc socailsm caused this

  15. I think socialism is better because you get both sides and I like having it more equal with fewer rich and poor than being super rich while watching others struggle with money with very little help

  16. Both in theory work by as humans we make mistakes so it’s close to impossible for us to get it right I chose what I believe in and I believe having everyone happy than being rich

  17. "In communism, it is the working class who owns everything." Sounds like a terrible system. I want the means of production to be owned by one guy and then for that guy to get tax cuts.

  18. Capitalism has been the economic vehicle which has pulled more people out of poverty than all other economic vehicles combined. Roughly paraphrasing Winston Churchill , "Capitalism is the worst system in the history of the world, unless you consider all of the others."

    The only people who don't like capitalism are the ones who cannot compete. Capitalism is pure meritocracy. It is the only way to expand an economy. Communism, socialism, and even the Scandinavian models always fail. Just give them time. Eventually people in those systems will either figure out that they can get more from the system than they work for, or they get tired of working for more than what they get.

    Capitalism is not corrupt. Capitalism is not exploitative. Capitalism is a free exchange between two parties. If one has money and wants goods more than the money, and another has goods and wants money more, then there can be free trade in a capitalist system. The same is true of labor and compensation.

  19. Marx failed to realize the rapid and organic redistribution of wealth and power that would occur through industrialization and innovation, negating the need for direct political revolt.

  20. I'm trying to understand Socialism, and I keep hearing that workers would only take what they need, huh? What if I say I need millions of dollars while someone else says they only need a couple thousand dollars? How do we determine need? I hear "social justice warriors" talking about equity instead of equality, which sounds good but how is need quantified?

  21. Good. So you would think that the next step would be a new model. For today’s world. Capitalism is not working in this country. Excuse the pun.

  22. What is the social and economic practices carried out by Northern European countries called @2:25 i.e. countries likes Finland and Denmark that use both Capitalism and Socialism to their benefit?

  23. Absolute socialism tries to enforce equality, ultimately forcing poverty on all but the corrupt ruling class. Absolute capitalism enforces inequality by allowing the wealthiest to consolidate their wealth at the expense of the majority. Absolutism doesn't work, a better system is one that strives to give all people the same opportunity to succeed, which is obviously much easier said than done.

  24. Capitalism stagnants development through market protection. YouTube, Facebook etc purchase most new competitors before the technology has the chance to develop. Other corporations use the same tactics to impede development in order to protect their products. Capitalism is a failing model. Only capitalism with high taxes and limits on wealth will stop abuse of the system from those in power to maintain that power. This pushes the ideal back towards socialism. Capitalism will cause more poverty in the long run

  25. Capitalism is not in itself political, although politics often gets involved in things against voluntary trade, such as taxing, protecting and subsidizing select groups.

  26. Communist Soviet Russia was chasing USA on the nuclear spectrum and even surpasses then on their understanding of it. The United States collapsed the economy in the 19080s

  27. What communists say: look at China 🇨🇳
    Capitalists: what about the rest
    Communism:ummm look at…… CHINA 🇨🇳

  28. I don’t think that’s accurate that in communism rules the means of production and spreads it. That’s what she said right ?

  29. I checked sevral videos for clearing my confusion but this video actually helps a lot……🤙
    Awesome work……💯
    Exactly what one need to understand this concept given here…..👍

  30. Capitalism and free market is the best system, it's more inclusive and it usually works, it's imperfect but it's the best we have
    It's common to think the northern European countries have socialism when it's pretty freemarket and capitalist despite taxes

  31. capitalism are modern imperialism and colonialism, cash is the king, capitalist is the nobleman (the 1%), the middle class and working class are all slaves (the 99%).

  32. I always considered a blend of Capitalism and a pinch of Socialism to be ideal. The socialism is there to keep the tyranny in check for it can be expected of the overwhelming wealth to sometimes get in one's head, plus to cushion the one's at the lower end of the hierarchy.

  33. It's not true that there's no incentive under socialism, plenty of people advocate monetary incentive under socialism.

    Violent revolution often leads to people trying to consolidate power. It is by no means exclusive to socialism, and socialism doesn't always lead to corruption. See Vietnam. Many other socialist regimes only became (capitalist!) corrupt dictatorships after America interfered.

  34. you forgot the most important thing about capitalism . the land we live on is taken from us BY FORCE ! then we are told to work for our masters to survive .

  35. Communism is an estelionate: All Marxian theoretical discourse only serves to divert attention from what communism really is: a satanic handbook of lies, deception, betrayal, domination, dehumanization, enslavement, the only way for the disqualified of the worst kind to gain absolute power. .

       Socialist parties are criminal organizations indoctrinated with collective hysteria, their members having removed from them all scruples, values ​​and moral limits.

        Socialism exists only because it is a powerful tool of domination and perpetuation in power, requiring only psychopathy as a prerequisite, exactly what all Communist leaders are, absolutely unscrupulous people.

  36. Socialism caused the death of over 120 million innocent people between 1917/2004 *, they are founding partners of drug trafficking in Latin America **, just stuffing pockets and briefs, drugging our young people, molesting our children!

    Socialists are funded by globalists, supported by NGOs, international foundations such as the "Open Society", devilish men like David Rockeffeler, george soros, to fund and implement puppet governments, imposters whose goal is to steal countries from their peoples, as we see today in venezuela, yet another genocide by hunger and encouraged crime.

  37. And the worst bourgeois is the communist bourgeois, gets rich without ever producing anything, even worse: taking and leaving the porridge who produced … the communist is the worst of the bad guys!

    The communists throw THE PEOPLE into communism, for them the people are cattle, they will NOT live abroad with the mafia that finances them, in luxury, they are the "left caviar", then they will put their children and co-workers at the key points of the power and perpetuate themselves at the expense of the misery and suffering of the people! the communist is the worst of the bad guys, and why are they as they are? They are the sons of Lucifer, the first revolutionary. * BLACK BOOK OF COMMUNISM ** RED COCAINE

  38. Communism started as a noble idea of equality and cooperation. Sadly the truth is humans just aren't as equal as we want to believe, we all have our own talents and ambitions and it should be natural for us to earn as much as we work for, as much as we can push our potential. Capitalism may be cruel at times but it insensitivity growth of society and technology which in time will make comfortable living condition for the poor as well as the rich.

  39. The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

  40. A good argument against socialism is to ask people who work 40hours a week in a restaurant if they are willing to share all the tips with people who work 16hours a week.
    Or ask people who work hard 16hours a week and are extra nice to customers if they are willing to share their tips with someone who also works 16hours but is rude to customers and spends a lot of the time on their phone and doesn’t do any work

  41. And what do they all have in common? They all fail when used in isolation. A hibrid between the 3 would perhaps better correspond to reality and to human behaviour.

  42. 1. socialism is great… until you run out of other peoples money. 2 communism is great … until you run out of morals and greed creeps in. 3.capitalism is great… until you find that 1 and 2 are also correct and life is filled with leeches and hanger-ons. and then we realise that we all end up in a box. so the moral? be happy and fuck the lot of it……

  43. The Scandinavian countries would be miniature superpowers if they hadn't ramped up their state control. They've been severely stunted BECAUSE of their attempts at socialism, they remain relatively prosperous DESPITE their soft-authoritarian governments. Anyone with the sightest understanding of economics will tell you this. Woefully misinformed video.

  44. Can you blend all these systems together and create a very ver good one which benefits all the people. Throw away the bad parts of each system? Why don’t people talk about this idea?

  45. You got one thing wrong about socialism. They don't own the economy, rather they regulate or control it. Emphasis on or.

  46. Capitalism is the most corrupted system in the world. The profiteers of capitalism control the government and try to destroy all the countries where working class people have power.

  47. Theft and tyranny (communism), vs slightly less theft and tyranny (socialism) vs the least theft and tyranny (capitalism)

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