Marx's theory of history is an account of the different stages of government through history. His analysis describes capitalism as the first stage followed by socialism and finally communism. Marx believed that socialism is where workers recognized their interests and became "class conscious". This is where people would be aided, on the basis of social needs. The final goal, Communism is based on a class-less society that will be profitable for the vast majority. Communism and Socialism are united together in their battle against Capitalism. .
What is the difference between Socialism and Communism? Socialism and Communism are systems of production for use based on public ownership of the means of production and centralized planning. Socialist and Communist believe that the inequalities that exist in our society are unjust and the minority of the population should not own the vast majority of the wealth. However, they differ on ways by which this change is to transpire. Some believe the change should be gradual, achieved through parliament, (socialists), while others believe that the change should be rapid, brought about through a revolution. Before the differences between the two ideologies can be explained we must first understand the principles from which they stem from: Capitalism. Socialism cultivates directly out of capitalism where communism is a further development of socialism. In fact, Communism evolved as mutations of socialism. Capitalism leads to high unemployment, separation (what Marx's called alienation), and poverty. Communism in practice leads to political control, the suppression of free speech, and the suppression of religion. Socialism is the in between of the two extremes. .
Capitalism is a political system where privately owned factories exist in order to create profit for the owners. From this political theory comes the economic principle, the law of supply and demand.