Tensions between Capitalism and Communism

The roots of the cold war can be found in the tensions between the different ideologies of Capitalism and communism.

Capitalism - In a capital system money is invested by private business. This money is invested in factories and paying workers. These workers produce goods in the factories. these goods are then sold for profit. The profit then goes back to the business man. This business man and the workers are taxed on their earnings which allows them to the government to pay for education

and other public services.

Communism - In a communism system all business is owned by the people and the state rather than by private business. The state use the taxes to run the State factories where people work. The goods produced are sold in State shops at fixed prices. The profit from these shops are used to pay the workers and fund the state government. Everyone gets an equal share and has access to the same resources.