Capitalism is an economic system based on the private ownership of the means of production, distribution, and exchange. The factors of production are land, labor, capital, and the role of the entrepreneur. It is often called a free enterprise system. It deals with private ownership, profit, and competition.
Socialism is an ecomonic and political philosophy based on the idea that benefits of an economic activity should be equally distributed throughout a society. A major con of socialism is that the countries tend to develop to many layers of bureaucracy, it complicates decision making and has a big effect on individual initiative. A big pro is that it gives workers and ordinary citizens more control over their daily lives.
Communism is a collectivist ideology, which calls for the collective, or state ownership of land and other productive property. Many of the countries that are communist have central planning. A con for this type of government is that the government controls everything they do.
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