Why Is It Necessary to Restructure America? Socialism and communism developed as a reaction to the concentration of ownership and the abusive labor practices that developed in the early stages of capitalism. However, after nearly a century of conflict between these two competing economic systems, a century that witnessed two world wars and a protracted cold war, we have seen in the past 10 years the almost complete collapse of all forms of socialism and communism which were based upon public or state ownership of the means of production. Today, China is the only major industrialized nation which still has an official policy of state ownership of the means of production, although here too this policy is being rapidly eroded by the growth of the private sector economy. However, despite the apparent triumph of capitalism over socialism and communism, despite the passage of labor law legislation during the New Deal ... Read More..