The primary point of difference between capitalism and communism is regarding the ownership of 'means of production' or resources in general. Communism shuns private/individual ownership of land or any vital resources. Instead, all the 'means of production' like land and other resources should be owned by the state. By state here, I mean the whole community of people. All land and resources which enable the production of goods and services will be owned by one and all. Everything will be shared. All decisions about production will be made by the whole community by democratic means. There will be equal wages for all. All the decisions taken will be according to what is good for all.
On the other hand, capitalism believes in private ownership of land and means of production. Every man will have to earn his worth. The major share of the profits earned from a business will go to the person who owns the means of production, while the workers who are responsible for running the business will get a small share. Every man will get his wages according to his merit and according to the thinking of the man who owns the means of production. Naturally the people who own the means of production, the capitalists, call the shots when it comes to decision making.
This is the major bone of contention between the two ideologies, ownership of means of production! Both are extreme ideas. While communism can kill the idea of individual enterprise, which has led to most of the technological innovations we see today, capitalism has the seeds of exploitation, where too much wealth and therefore power, is concentrated in the hands of a few people.
Communism and capitalism have contrasting views about individual freedom. Communism asks one to put the society before the individual, while capitalism puts individual freedom, before society.
Source: Buzzle: http://www.buzzle.com/articles/communism-vs-capitalism.html
