When the animals set up their own social system, did it most resemble capitalism or communism?
The system the animals set up after they overthrew Mr. Jones is called "animalism," and it is based on the teachings of Old Major. It is clearly intended to resemble communism, in that it is intended to create equality among the animals. The best example is perhaps the seven commandments painted on the wall of the barn after the revolution:
1. Whatever goes upon two legs is an enemy.
2. Whatever goes upon four legs, or has wings, is a friend.
3. No animal shall wear clothes.
4. No animal shall sleep in a bed.
5. No animal shall drink alcohol.
6. No animal shall kill any other animal.
7. All animals are equal.
The system is intended, like communism in theory, to avoid extremes in wealth or poverty. In the immediate aftermath of the uprising, they all work together to bring in the harvest. The system, like communism, fails to bring about in practice the society they predicted in theory, however, as the pigs begin to manipulate the system to their own ends. The book is a deliberate and rather blatant satire of the Soviet Union under Josef Stalin, which, it was becoming increasingly well known, was attempting to establish a communist society through terror and the labor of millions of ordinary Russians.