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Capitalism is based on private ownership and motivation by profit. Marx criticizes capitalism for its tendency to abuse the working man, or the proletariat, by paying a wage that barely guarantees the workers survival.
Marxism theorizes that in order to remove the proletariat from its poor economic situation, a socialist revolution must occur to remove the unconcerned ruling class from government.
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Following the revolution, a new, socialist government is created that subsequently becomes communist in nature.