Characteristics of Communist System
Following are the Characteristics of Communism
Abolition of Private Property
The first feature of the communist economic system is the abolition of the private ownership of means of production. In this system, an individual can own nothing except necessaries of life. No one can run private business.
Collective Ownership of Means of Production
In this system all means of production such as factories, farms, land, trade; construction, mines and means of transport and communication are under state ownership and control.
Central Planning
Utilization of national resources and production and distribution of consumer goods is done through comprehensive planning. In other words, the work of effecting a balance between demand and supply of goods is not left to the Mechanism of Prices. The forces of demand and supply are balanced by central planning.
Elimination of Unfair Gaps in Incomes
Each individual is paid compensation according to his need. This eliminates unfair gaps in incomes. The abolition of revenue, interest and private profit puts the system of distribution of wealth on a just and fair basis.
Provision of Necessaries of Life
In communist system, state is responsible to provide work and compensation according to the capabilities of every individual.
