One of the big reasons capitalism aids the government is because people are given chances to run businesses or contribute to them at will. This gives the government chances to tax the businesses income, while the rest goes to the business owners, who eventually spend that money, and a steady flow of money from people to businesses to government is established. In communism however, the businesses are all government owned, and although the government is making all the profit, they must flush that income back to the people so that they will spend the money at the government businesses. In this system, the people are making no income, and the government is having to give money for the people to spend into the economy, instead of the government making profit, and the people making profit of their
One of the big reasons capitalism aids the government is because people are given chances to run businesses or contribute to them at will. This gives the government chances to tax the businesses income, while the rest goes to the business owners, who eventually spend that money, and a steady flow of money from people to businesses to government is established. In communism however, the businesses are all government owned, and although the government is making all the profit, they must flush that income back to the people so that they will spend the money at the government businesses. In this system, the people are making no income, and the government is having to give money for the people to spend into the economy, instead of the government making profit, and the people making profit of their