The Espionage Act was passed in 1917, right when the United States entered World War I. Considering that the US was about to enter a huge war, the federal government wanted to make sure that American citizens were loyal to the cause and would not disrupt or go against anything being said about the war effort. With the Espionage Act, the federal government made it illegal to say anything negative about the government, the war effort, or the US government in general.
Based on the summary provided, it is clear to see that citizens 1st amendment rights of freedom of speech were severely limited, as saying something bad about the government or being anti-war could land a person in jail. This also limits the freedom of the press (also part of the 1st amendment). Newspaper writers who disagreed with the war or spoke negatively about how the government was handling the war could be arrested for their writings.
In a capitalist system, "b. governments do not control the factors of production" although they do tend to regulate production and ensure that business is being practiced fairly.
