Capitalism and Communism Capitalism and Communism are two very different types of government used to some extent today. Capitalism is based on a free market, individual investments and decisions, and making money. Capitalists own capital, means of production, of companies and benefit from others’ labor. Communism is based on liberating the conditions of the proletariat, or lower class. Communism uses communal ownership and has a hope of better economical equality. Communists want to spread the wealth more evenly throughout the people. Carl Marx started the idea of Capitalism, or Socialism, during the Industrial Revolution. He witnessed the horrible conditions the pro