Under what circumstances would capitalism and communism work perfectly respectively?

Answer 1

Communism could work perfectly if there was a computer that could get perfect information about preferences and needs from all economic agents, allowing it to allocate ressource efficiently and fairly.

Answer 2

If by Capitalism you mean free enterprise it does work perfectly. It is just the most efficient means of allocating resources and satisfying needs of the public. Its not mean to solve all social problems or to create a utopia.

Communism doesn't work at all. Because it focuses on distribution of goods. And the distribution is totally separated and disconnected from the production of goods. The result is that under communism there are always shortages of goods. There never is enough of anything to go around. Mainly because there is no reward for production, only a guarantee of consumption.

Answer 3

None. Capitalism exists to be efficient in resource allocation, not to be perfect. Communism never had a chance from the start because it requires politicians to be intelligent. Since this has never happened in the history of mankind, it seems unreasonable that it is ever going to happen.

Answer 4

Apply the second welfare theorem. According to the second welfare theorem, for each efficient solution there exists a realloction such that a competitive market will reach that solution. If the natural allocation of resouces leads to a market equalibrium that matches the communist allocation, you will achieve communists objectives without implimenting a reallocation and communist methods.

If you consider one specific allocation as "communist" then the probablility of intercection is zero. If you provide a reasonable range of allocations acceptable to a socialist ideal, it is possible for the two to intercept.

Answer 5

my suggestion for all governments is a mixture of capitalism and communism. capitalism to control the distribution of limited resources, and communism/socialism to pay for resources that are best distributed by some sort of sharing system (public transport and roads, intellectual property) as for health care, I don't think it is correct to share the cost of other people's faults or unhealthy living choices. But the library system should be expanded to include complete sharing of all intelectual property, and taxes should take care of the payment of popular artists and productive inventors.

(i should add that publicly funded schooling is a bad use of socialism)

Answer 6

It never will, a socialist state can work but capitalism is the ruination of the world, the stroke of the pen is mightier than the sword