The government influence the economy by producing goods and services.
Capitalism: is an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit.
(Basically Capitalism referred to people who believed that the government should not interfere with businesses)
Socialism: the factors of production are owned by the public and operate for the welfare of all.
The main difference between the two was that in capitalism, business owners wanted to run everything themselves. They didn't want help from the government at all. Socialism was when the people wanted "some government" involved within the businesses. In summary, the main difference is the amount of government that was allowed to take over in a business.
In a confederacy, there is no such thing as a strong central government and the purpose of a confederacy is to protect the states in it from foreign incursion, not to solve domestic problems which are all handled by individual local governments. The articles of confederation established such a confederacy of the first states and they needed the constitution in order to turn into a federation.
There were two parties in China after World War 2: the Nationalists and the Communists. The Nationalists were led by Chiang Kai Shek, and the Communists were led by … Mao Ze Dong. The Communists defeated the Nationalists, and Chiang Kai Shek fled to Taiwan to set up a government there.