Essay about Economic Systems Of Capitalism And Communism

1375 Words May 25th, 2016 6 Pages
If people were asked to tell what they know about capitalism and communism, let alone define what both economic systems mean most people would know little to nothing about both. An economic system is a method by which resources are services are distributed. Economic systems are different primarily in who owns the factors of production, and how the resources are used to direct economic activity (Economic Systems: Capitalism, Communism, and Socialism. William C. Spaulding. Web. 21 May 2016.). So what does that say about the election year political debates? It appears that people see all the troubles and dangers in one of the political concepts, and when they disagree with an idea they label it as capitalistic or communist. Capitalism is an economic and political system that is controlled by private owners for a profit. On the other hand, Communism is an economic system where the government owns most of the factories of production and holds most of the nation’s wealth. What are differences between the economic systems of capitalism and communism?
Under capitalism, each individual or business works in its own interest and maximizes its own profit based on its own decisions. (Economic Systems: Capitalism, Communism, and Socialism. William C. Spaulding. Web. 21 May 2016.) This means that any sorts of production with factories and businesses are private owned and not by the government. Private owners make decisions bout when they want to produce and how much the product should…

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