Question

Explan the difference between capitalism and communism. What role does the government play in each type of economic system?

Answer 1

@wwhitlock

Answer 2

Capitalism is based on the free marketplace. Someone has something to sell, someone else wants to buy it. They settle on a price and terms. The transaction is done. Capitalism needs government to do things like prosecute thieves, settle contract disputes and provide a common currency. But even those things can be worked out without a government in the free market. Capitalism thrives under the least amount of government possible.

Communism sounds really good but usually doesn't work unless paired with an authoritarian government.
The idea is that everyone owns everything in common. So factories and farms have no owner but the people. Everyone has enough to eat, clothes to wear, a place to live and so on. People will freely work and use only what they need because the people are all equal and will respect each other. That's what people are told.
Communism has worked on a limited basis when everyone involved chooses to be a part. The Amish have a version of communism that fits into capitalist US society. But they all choose to live that way.
Historically, Communism has been forced on people.. The government rises from a revolution and great promises are made to the people. But the government owns all industry and makes rules for every aspect of the economy in the name of the people. The system is ripe for corruption.

Answer 3

Thanks @wwhitlock