Question

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

Answer 1

Capitalism---- an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state


communism--- a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Answer 2

Capitalism is based on the principle of individual rights a free market economy an uneven distribution of wealth and very little government interference communism is based on the principle of community rights, controlled economic production, an even distribution of wealth and high levels of government oversight.