WHAT IS THE DIFFERENCE BETWEEN SOCIALISM AND COMMUNISM?

Socialism and communism are ideological doctrines that have many similarities as well as many differences. One point that is frequently raised to distinguish socialism from communism is that socialism generally refers to an economic system, and communism generally refers to both an economic system and a political system. The means of production are publicly owned in both systems, but the ways that money and resources are distributed are different. In socialism, each person is allotted resources according to his or her input, or amount of work, and in communism, each person is allotted resources according to his or her needs. Many people consider communism to be a "higher" or more extreme form of socialism.

As an economic system, socialism seeks to manage the economy through deliberate and collective social control. Communism, however, seeks to manage both the economy and the society by ensuring that property is owned collectively and that control over the distribution of resources is centralized to achieve both classlessness and statelessness. Under communism, all people are considered equal and are provided for equally, regardless of their contributions to the economy or to society. This is different from socialism, but both socialism and communism are similar in that they seek to prevent many of the ill effects that are sometimes associated with capitalism, such as economic inequality.

Socialism and communism are based on the principle that the means of producing goods and providing services – such as all factories and companies – should be owned publicly and controlled and planned by a centralized organization rather than being controlled by members of a small class of wealthy people. Socialists assert that wealthy people who own the means of production are able to exploit workers in order to make more money and become even richer, thereby increasing their power over the workers. By eliminating private ownership of factories and companies, socialists believe, the workers can be paid more.

Another difference between socialism and communism is that communists assert that both capitalism and private ownership of the means of production must be done away with as soon as possible in order to make sure a classless society – the communist ideal – is formed. Socialists, however, typically see capitalism as a steppingstone toward the ideal state and believe that socialism can develop out of a capitalistic society. In fact, one of the ideas of socialism is that everyone within the society will benefit from capitalism as much as possible as long as the capitalism is controlled somehow by a centralized planning system.

2.Complete the table below.

TEXT 4

Read the article and choose the most appropriate variant (A-D) for each gap.

1. The black market is______________.

WHAT IS THE BLACK MARKET?

The black market is not a physical place, but rather an economic activity in which merchandise and/or services are bought and sold illegally. Also called the “underground market,” this market gets its name due to the fact that its activity is conducted out of sight and often “in the dark,” outside the sight of law enforcement.

Many factors can make a transaction illegal, thus qualifying it as a black market transaction. The good or service itself may be illegal, such as illicit drugs, weapons, or prostitution.

In other cases, goods may be stolen and then re-sold on the black market. When a good is euphemistically referred to as having “fallen off the back of a truck,” usually it means that it has been stolen for the purpose of being sold illegally. If you are purchasing a new stereo, for example, from an individual at an extremely low price, there’s a good chance that it’s been stolen. Another way that a transaction can be illegal is if it is an otherwise legal good or service that is bought or sold in such a way as to avoid proper licensing or taxes. This is the case with unregistered firearms and cigarettes, which usually include a hefty local, state, or federal tax.

Due to man’s inherently entrepreneurial nature, coupled with government’s pesky tendency to regulate, black markets can and do exist everywhere. They do, however, tend to develop more readily in states or countries with especially heavy regulation. Even though a good or service becomes outlawed or heavily regulated, the market may continue to demand it. As a result, the black market springs up to meet the market’s demand. This is the case when governments place price controls, rationing or complete prohibition on a good or service.

Although the consumer’s demand is met, usually the seller or “black marketeer” is the one who profits from a transaction. Prices on this market tend to be higher due to smaller supply and constant demand. The risk that a marketeer takes in acquiring and selling a good or service is also included in the price. If it is difficult goods to acquire, it will have a higher price as well. At times, prices can be lower if the seller has lower “overhead” because he or she stole the goods or is avoiding high taxes.

Many solutions to the black market have been proposed, including deregulation, legalizing drugs and prostitution, and increasing supply of a particular good. Some argue that this is a concession to criminals and drug users, while others argue that government resources can be put to better use.