“Capitalism vs. Communism”During the Cold War, Europe was divided between communist countries and non-communist countries. The conflict was caused by differences in the underlying values ​​of capitalism and communism. During this period, the United States and the Soviet Union also had opposing ideologies. Despite the different ideologies of capitalism and communism, both have influenced the political, cultural and economic development of Third World countries. Capitalism is “a way of organizing an economy so that the things used to produce and transport products (such as land, oil, factories, ships, etc.) are owned by individuals and corporations rather than by the government” (Merriam-Webster). Capitalists believe in economic freedom, competition and personal responsibility. The key thinker of capitalism was Adam Smith (1723-1790), a Scottish philosopher and economist. Smith is credited with creating most of the key principles of capitalism, such as raising workers' wages so they too can become consumers. “This great increase in the quality of work which, in consequence of the division of labour, the same number of people are capable of doing, is due to three different circumstances…” (Smith, 1). This quote explains the increase in the dexterity of individual workers, the saving of time that is usually lost between the passage of work and the invention of a greater number of machines which contribute to decreasing manpower and individual work among men. Capitalism is the strongest economic system and is used all over the world. Capitalism takes a survival of the fittest approach, only the strongest in business will survive. “…from which so many advantages arise is not originally the effect of any human wisdom…although……middle of paper……1904. Library of Economy and Freedom. May 5, 2014. “The History of the World for All of Us.” World history for all of us. San Diego State University, n.d. Web. May 3, 2014."Curiosities." Curiosity. Np, nd Web. 05 May 2014. “Five Capitalist Democracies and How They Do It.” PBS. PBS and Web. May 05, 2014.Layton, Julia. ""Real Capitalism: The Idea"" HowStuffWorks. Np, nd Web. 05 May 2014. Ritzer, George. "Charles Marx." Sociological theory. New York: McGraw-Hill, 1992. Page no. Print.Rosenberg, Matt. "Communist Countries: A List of Current Communist Countries". About.com Geography. Np, nd Web. 05 May 2014."Russian Government." Information, please. Infoplease, nd Web. 05 May 2014. .