The government owns this shop and we you both work in this store
Shop
No I own it!
Controlled Economy
I will give you this box of food for 20 dollars
food
The government controls trade therefore you cannot trade to these people
In a Communist economy, all property is shared amongst the people and everyone is paid according to their skill in labor and needs. Communist economies may also come with a controlled economy meaning that the government regulates trade and citizens must follow government trade laws.
Democratic Economy
Welcome to my shop
Timmy's Sidestreet Shop
I would like a candy bar
Free Market
Free trade allows me to give this to you
food
In a Democratic economy, people can own private property which they can use to make their own capital. Free markets are similar to this in which the government doesn't interfere or has little authority over trade. This allows for an economy to grow because people aren't subjected to government trading laws.
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