Capitalism and communism are two terms that will remain to be different in their political and at the same time, economic ideologies. Therefore, in other words, capitalism and communism will never be together. One of the major known difference between capitalism and communism is in the regard of the resources and the means of production. In communism, the community or the society owns the resources or the means of production. However, for the sake of capitalism, the resources or the means of production lies with the private owner.
Besides, the profits of every individual involved in communist are shared equally, but in the capitalist, the entire profit belongs to the private owner of the resources and the production. For the communists, the society is above the individuals while on capitalist, the freedom of the individual is the society or the state. Therefore, about both the communism and capitalism, they can never match, and they will continue to be different always. Concerning the cases of Hernando Desoto, on the mystery of capital and at the same time, Richard McGregor, the Party: the secret world of China’s communist rules, there will be the analyzing the actual differences between the two elements and how they have affected the growth of nations across the world.
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Hernando DeSoto is a name that crops up in the regular readings related with development. Therefore, concerning Desoto, something else is necessary for the capitalist economy to be in a position of production of wealth. According to Hernando, the capitalist nations will not be able to produce wealth if they are not able to come up with a formal system of property rights. The right of owning properties is much important, and it should not be realized to specific individuals in the countries. There is the need for fairness and ensure that each person in a nation has the capability of owning properties whenever he or she wishes (Woodruff & De Soto, 2001).
He claims that the poor are not without the assets; this is because they have homes and farms. Therefore, the difference between the developing countries and the developed countries is that the latter have structured and established property rights as compared to the former, which have informal and local ownership of resources. According to Hernando, there is the need of integrating the extralegal agreements into a unified formal property right system and that the world poor is mostly realized due to the creation of fictitious commodities. Therefore, lack of establishment of the ownership of properties rights is what the capitalists’ nations will make them not wealthy.
Additionally, there are the five mysteries of capital about the analysis of DeSoto. The five secrets include the mystery of missing information, the mystery of capital, the mystery of political awareness, the missing lessons of the United States history and at the same time,
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