Political economies are very important and can be found all over the world. Political economies are not all the same and are used differently in various countries. The political economies of capitalism, socialism and communism are best understood as points on a single continuum, which each have unique qualities, but at the same time they all have significant problems associated with them.
In the first place, these different economic systems are best understood as points on a single continuum. Hypothetically speaking if these economic systems were on a line, capitalism could be on the right, socialism could be in the middle and communism could be on the left. Capitalism and communism are two different extremes and socialism has a little
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Socialism is a political economy where there is a little bit of both capitalism and communism. Guentzel talked about how some communists got to the point where they wanted some reform. From 1850 to 1932 Eduard Bernstein came up with the idea that there should be democracy within a socialist society, because workers have the ability to improve their own conditions. By 1950 the reformists were no longer interested in having a complete socialist society. Reformists started to become skeptical of complete communism and so as a result started to believe that some capitalism was necessary to create new inventions and ideas. Last of all, reformists were also against the idea of rebelling against an existing government and supported the idea of having more than one party (Guentzel 707). In socialism the government allows businesses to make a profit without government interference for the most part for the sake of innovation, but at the same time the government makes sure that businesses produce necessary resources for the nation. The government also makes sure that the poor have a means of getting into the Middle Class and receive necessary resources. Socialism shares a little bit of both capitalism and