The economic theory is divided into 3 theories; capitalism, socialism, & communism. Capitalism it’s an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. For example, Japan & U.S. Adam smith had explained the workings of the free market within the capitalist economies and the individual freedom and choice emphasized. The second theory is Socialism and it's a theory of social organization that advocates the vesting of the ownership and contra of the means of production and distribution, of capital, land etc. in the community as a whole and it's common in Europe, Latin America, and Africa so that the government helps them to get what they want and the economist that conceptualize it is John Maynard, Government should intervene in economic emergencies through tax and spending (Fiscal Policy) and changing the money supply (Monetary Policy ).The third theory is Communism and it's a theory of social organization based on the holding of all property in common so that people are equal and the government provides them with everything and it's free and some countries like China, Cuba , and North Korea .Karl Marx is the economist who said that government should control economy and distribute goods and services to the people .In my opinion the best theory is Capitalism because the government don't have anything to do with owning your own business or anything else ,it's not involved and it's your private ownership that you own.
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