Communism Explained: Global Impact and Lessons for Australians in 2025

Communism is a word that evokes strong reactions—sparking debate in parliament and on social media alike. But what does it really mean for Australians today? As 2025 brings new economic realities, understanding communism’s impact, both historically and globally, can help us navigate an increasingly complex financial world.

The Fundamentals of Communism: From Theory to Reality

At its core, communism is a political and economic ideology advocating for collective ownership of property, the means of production, and the absence of social classes. Karl Marx and Friedrich Engels outlined these ideas in the 19th century, envisioning a society where wealth and resources are distributed according to need, rather than market forces.

• Key principles: Abolition of private property, central planning, and equal distribution of wealth.
• Global examples: The former Soviet Union, Maoist China, Cuba, and contemporary North Korea have all implemented forms of communism—with varying results.
• Australian context: While Australia has never adopted communism, its political presence has influenced union movements and debates about wealth distribution, particularly during the 20th century.

Communism’s Impact on Global Economic Policy in 2025

While pure communism is rare today, the ideology still shapes policy in countries like China, Vietnam, and Cuba. China’s hybrid approach—”socialism with Chinese characteristics”—has led to one of the world’s fastest-growing economies, blending state control with market mechanisms. In 2025, China’s state-owned enterprises play a crucial role in global supply chains, impacting Australian exports, particularly in minerals and agriculture.

For Australians, these are the most relevant impacts:

• Trade relations: China remains Australia’s largest trading partner. Its state-driven economic policies affect commodity prices, tariffs, and bilateral negotiations.
• Investment flows: Chinese investment in Australian real estate and infrastructure is shaped by Beijing’s central planning priorities, which can shift suddenly in response to political decisions.
• Global inflation and supply chains: Centralised planning in large economies can disrupt global supply chains, influencing prices at Australian supermarkets and hardware stores.

Lessons and Reflections: What Can Australians Learn?

Australia’s own economic policy is firmly rooted in capitalism, but debates around wealth inequality, social services, and workers’ rights often echo themes found in communist theory. In 2025, with cost-of-living pressures and housing affordability at the fore, some policymakers are exploring ideas such as:

• Universal basic income: Inspired partly by socialist principles, this concept is gaining traction as a way to address technological unemployment and provide a safety net.
• Public ownership: Renewed interest in public ownership of energy and transport infrastructure is driven by concerns over climate change and equitable access.
• Tax reform: Proposals to increase taxes on high-income earners and multinational corporations reflect ongoing debates about fair wealth distribution.

While Australia is unlikely to embrace communism, understanding its legacy and ongoing influence helps us critically assess economic policy choices. The lessons of the 20th century—both successes and failures—can guide Australia as it navigates a rapidly changing world economy.

Conclusion

Communism’s footprint on the global stage remains significant, even as Australia charts its own path. By examining how different systems operate—and how their underlying principles influence today’s debates—Australians can make more informed decisions about the nation’s future. Whether you’re concerned about trade, social policy, or the cost of living, understanding these big-picture ideologies is more relevant than ever.