Communism, on the other hand, refers to the communal ownership of public resources. Under liberal capitalism, everyone has the same share of resources and there is expected to be as little government intervention as possible. Communism is geared towards placing the ownership of resources to the people where these resources are owned communally. There exist some fundamental differences between communism and liberal capitalism.
The role of individual changes depending on whether communism or liberal capitalism is at work. With liberal capitalism, each individual is independent and is expected to make their personal decisions. Under communism, each individual is supposed to contribute to the common good of the society by being a part of the production system.
Under liberal capitalism, wealth is distributed unevenly unlike in communism where each individual in the society co-owns the wealth and the national resources. Under capitalism, each individual has their own wealth and this wealth is owned privately. Communists believe that each person’s needs are equal and equally important and in this regard argue that resources should be shared equally. At the same time, communists believe that by working together as a team, people can achieve more and this will lead to the welfare of the community as a whole. Liberal capitalists have different views on this. To begin with, a liberal capitalist society, it is believed when individual compete against each other, they will be the most productive and this will eventually work for the best of everyone.
One of the best examples of liberal capitalism is probably the United States of America. Liberal capitalism in America has led to the inventions of so many technologies that have made the lives of people so much easier. In liberal capitalist economies such as the United States of America, individuals are rewarded for their contribution to the societies.