The laissez-faire capitalism is an economic system where the government does not play any role in managing the economy. In this form of economy, no regulation of any kind is directed towards the private sector. Trusts and monopolies are allowed, and furthermore, there are no environmental or safety guidelines. On the other hand, the communist system is concerned with the complete government control over the market where entrepreneurship is restricted, and individuals in the country are given the same living standards. The two systems of the economy are regarded as opposite endpoints of a continuum due to their differences.
Major differences in laissez-faire capitalism and communism emanates from their economic and political ideologies. One area of major difference is the ownership of resources where in the latter the community owns the resources, and in the former system, the private owners own the resources. Other differences come in the sharing of profit, control of resources, and other philosophies concerning individual freedom and private property. Some of the economic systems in between the extremes formed by the continuum include socialism and pure market economy.
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The United States is essentially a capitalist economy as it possesses some of the characteristics that include private property rights, pursuing of self-interest, the freedom of choice, competition, and the fluctuation of market prices due to demand and supply. It is imperative to note that this has an influence on the citizens of the country because the government controls vital aspects of the economy such as education and health. The government controls these entities creating rules and regulations which must be adhered to. Such regulations ensure that every citizen enjoys an equitable gain.
