Communism, Capitalism, and Socialism Essay

652 Words3 Pages
Three different types of economic systems used by governments are Communism, Capitalism, and Socialism. Each type of system is unique in different ways. Each has distinct aspects that make it what it is. In communism, the government runs everything and there are no social classes. The government in capitalism doesn’t interfere with any businesses and lets the citizens own and operate them. Socialism is basically a mixture of the two economic systems. The government runs certain businesses, but citizens run the rest. The three economic systems are different in the way they run things and regulate things. Communism is an economic system developed by Karl Marx. Communism, also called Marxism, is an economic system used by…show more content…
It is the economic system used by a government that regulates only certain businesses for the welfare of the citizens. The government normally only regulates housing, education, food, and medical issues. Since that is all the government regulates, private citizens are allowed to own businesses. However, the income of these businesses is controlled thru taxes. The strength of socialism is that the government has more control over businesses and can regulate what happens in them. The weakness is that people interested in owning a business in the area of housing, education, food, or medical issues cannot. All the three economic systems are different in unique ways. The most effective out of the three economic systems is capitalism. It is the most effective for a few reasons. First, people are allowed to own any type of business they want. In socialism they can’t own a variety of businesses because the government runs them. In communism, no one can own a business because the government owns everything. If people are allowed to own any type of business that they want and keep the profits of the business, they will want to work harder then they would under communism or socialism. In addition, just because the government doesn’t interfere with businesses a lot doesn’t mean that the businesses aren’t strong. The government still does interfere a little, regulating what the businesses can and cannot sell. Lastly, capitalism is the most
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