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In Vic3, you just go to yours Laws tab and switch governance principles from "Monarchy" to "Council Republic".
Hope that helps.
So the unions eventually turn fascist and their ideology start spreading like cancer, before you know it you'll be forced to go towards fascism as well.
Fascism is a partnership between corporate interests and a strong central government. Communism is when the means of production are owned collectively within a classless society. The only way they are the same is that they both use the mechanism of the State.
The problem is that a classless society is pure fantasy. People are never going to be completely equal. Some individuals are always going to be smarter, healthier, and more productive than others.
If all people are forced to be equal, then society loses all the benefits that come from somebody being smarter or healthier, as it won't make sense to be more productive anymore if it doesn't benefit you. Then people are forced to use their intelligence to invent ways to be lazy or to engage in corruption for their own benefit, instead of using their intelligence to be more productive. This is why all communist countries always turn into corrupt hellholes.
Communists also have all kinds of weird assumptions about things like profit. Like profit is stolen from workers. Let's assume this is true and profit is a bad thing. The only problem is that if a company can't make a profit with good products and services, it can't expand its business. Profit is necessary to hire more workers and build more factories. In communism, the company has to give all profits to the workers who already work in that company. This causes goods and services in communism to be of poor quality, as it is considered a crime to expand business and make profits, which are necessary for business expansion.
Then, when these problems become widespread, communist countries are never able to fix them. I mean, issues like corruption or poor-quality products. Instead, they order the police and secret service to ensure that all unhappy people are punished. This is why communist countries always turn totalitarian states as it is more important leaders to stay in power than fix all problems their ideology caused.
I sometimes play communist country or totalitarian country even when I don't think they work in real life just because it fun to be bastard who crush weak liberals. :D It is why games are fun you can do stuffs that you cant in normal life.
Claiming two ideologies are distinct isn't exactly a political statement, but saying they are might be