Communism vs Capitalism: Two Ideologies (Systemic differences (Private…
Communism vs Capitalism: Two Ideologies
Great differences in wealth but the majority are well off
Wealth more equally shared but majority earn generally less than in the U.S.
Individual freedoms over society
Society over the individual
Resources owned by a private company
Resources owned by the state
Capitalism- an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
Communism- a theory or system of social organization in which all property is owned by the community and each person contributes and receives according to their ability and needs.
The Marshall Plan & The Truman Doctrine
Marshall Plan 1948
An economic plan
Set up to send aid to counties in Europe in the form of cash, machines, equipment & goods
Another branch of the 'Truman Doctrine' that was created because Truman believed that communism spread in countries that were poor & desperate (trees of Communism)
By 1953 the U.S. had spent $17 billion on Marshall Aid for Europe
Truman Doctrine 1947
A political plan
The first time this policy was implemented was in Greece in 1947. After WW2 Britain had 40,000 soldiers in Greece but struggled to fight the war against the communist rebels so the U.S. steped in and aided the Greek government defeat the rebels
Designed to contain communism, known as 'containment'
Truman claimed it was the task of the USA to protect the free countries of the world from the Communist threat
They saw it as a non-military way by the USA to gain control of Europe
Claimed it was 'dollar imperialism'
Set up two organisations to strengthen their control of Eastern Europe & to oppose containment
Cominform & Comecon
A political plan
Enabled the Soviet Union to coordinate communist parties throughout Eastern Europe
Ensured that Eastern European communist states followed Soviet aims in foreign policy & introduced Soviet-style economic policies, such as 'collectivisation of agriculture' and state control of industry
An economic plan in response to Marshall Aid
Aka. 'The Council for Mutual Assistance'
Supposed to be the means by which the Soviet Union could financially support Eastern Europe
In reality Comecon allowed the USSR to control the economies of these states, give the USSR access to their resources, encourage economic specialisation within the 'Soviet bloc'. E.g. Czechoslovakia & East Germany were encouraged to concentrate on heavy industry. Romania, Hungary & Bulgaria specialised in production of food & raw materials