By: Cameron Fluhart
Capitalism is 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. Economic decisions are made by the owners of the companies. competition plays a big role in capitalism because sellers compete to sell their goods at a reasonable price. The United States is an example of a country that uses capitalism.
Socialism is a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. There is no competition in socialism because everyone works together to make a profit. An example of a state where socialism is used is The Republic of Cuba.
In communist economies today, the government decides what to produce, how to distribute, and how much to make. There is no competition because the economy is being run by the government. An example of a country that uses a command economy is North Korea