Capitalism and the Free Market Text Version
Let's talk about economic systems. In the modern world, there are three main economic systems: market, mixed, and command. And within those systems are capitalism, socialism, and communism.
In a capitalist country, property, products, and services are privately owned. Companies compete with one another for business, decide which goods and services to produce, and set their own prices. The goal of capitalism is to allow competition and free choice and limit government control. The United States and Japan are capitalist nations.
In a socialist country, the government owns the resources and operates production. It limits, or even eliminates, individual choice and ownership. The government also provides many services, like education and healthcare, for its citizens. The goal of socialism is to spread wealth evenly and fairly amongst the people. Sweden and France are examples of Democratic Socialist nations in the world today.
In a communist country, individuals do not own property or businesses; the government does. Wealth and resources are distributed as the government sees fit. Communist governments are usually run by one person or a small group of people. The goal is to create a classless society. China and Venezuela are considered communist nations. But North Korea is the nearest to true communism in today’s world.
It’s important to understand how different economic systems work, in order to appreciate the freedoms that you have as a U.S. citizen.
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