Capitalism vs. communism and markets vs. central planning

Reading the comments under this excellent article by Unlearning Economics, I am struck by the fact that most of the arguments in the capitalism vs. communism debate are let down by the two sides failing to lay out rigorous definitions from the outset. In order for a proper debate to take place, both sides must specify what they consider to be the necessary and sufficient conditions for an economy to be considered ‘communist’ or ‘capitalist.’

I have pointed out before that markets are not the same thing as capitalism; it would be useful now to note that central planning is not the same thing as communism. Historically, most so-called communist states have attempted to engage in central planning, rather than in market-based solutions to problems of resource allocation; but this does not mean that all conceivable communist states must necessarily engage in central planning.

I’ve just realised I used the phrase ‘so-called communist states’ in my previous paragraph; in doing so, I could be accused of ‘special pleading’, and claiming that ‘true communism’ has never existed. This wasn’t my intention, which was to highlight the fact that just because people give something a particular name doesn’t mean that the name is accurate or descriptive.

So what is communism?

I’m not entirely sure. I can think of several highly limited and unsatisfactory definitions off the top of my head. Marx himself was somewhat vague on the subject of exactly what communism would look like. This continuing vagueness is part of the problem; communism can mean lots of things to lots of different people, just like capitalism. All this just shows how important it is to lay out rigorous definitions at the outset.