Capitalism versus communism The United States of America and the country North Korea are very different from each other. The USA is a open economy which means it can trade with almost any county over the world. The USA has only a few import tariffs. North Korea is, on the contrary, a closed economy. The economy of North Korea is small because it does not trade with any country. The citizens and companies in North Korea cannot sell or buy anything from outside the country. History shows great differences in thoughts about protection and free markets, the capitalist and the communists. But what ideology is nowadays best for the citizens and the economy of a country? North Korea has problem as a result of the closed economy. They got a food problem because their agriculture cannot always make enough food for the whole population. The USA for example can always import food from any country in the world. But the free market system, which connects many different countries with each other, has also a dark side. In 2007 the USA had some intern problems with the house market. A year later European countries got infected and went in a recession. The government is an important institution which plays a different role in the closed and the open economy. In the free market structure the government does not influences the economy. According to Smith (1776) prices and wages arise by supply and demand. This system works perfectly and should not be interrupted by government intervention. In the protection economy, on the other contrary, the government controls the economy. According to Marx, the communist system is more fair than the capitalism system, because labor gets exploited and the rich people are getting richer. In conclusion, both the communist and the capitalist system have defects. Nowadays the best economic system would be in the middle of the protection and the free market. This is free trading but the government should monitor the economy.