Capitalism Vs Communism

Over the centuries, the economic system was dictated by the ruler and the type of political system he or she sets up. Eventually, the economic system evolves to the point where in modern society, the economy across the world is dictated by two main systems: capitalism and communism. Both have their unique features that contributes to the way societies are functioned. One of the main economic system includes capitalism whom was created by Adam Smith. Smith created capitalism revolving around the idea of laissez – faire, which translates to “hands off.” He believed that the government should not interfere with commercial business. “Capitalism is based on private ownership of the means of production and on individual economic freedom” (US history, “Comparing Economic Systems”). The private owners of the corporate decide on the means of production. The price of an item depends on the demand for it. Furthermore, when the supply increases, the prices usually decrease. The goal of capitalism is for producers and consumers to be able to have freedom of their business and not have the government involve. This increases competition among businesses and as a result, more effort is put into the business to make the product thrive in competition. The theory of capitalism is that “Capitalism assumes
The living conditions of factory workers were horrible and unsanitary with the lack of a sewer system and the uncomfortable space a family would have to share with many other families in a small, shabby building. The wealthier class continues prospering while the working class stays the same, and the working class puts a lot of effort and work into the business. Of course over the decades, capitalism in America has been modified due to the various regulations set by the government to avoid exploitation; however, the idea of private owners having full control of their corporate and the means of production remains