Within a capitalist system, a person's standard of living is supposed to depend upon how able they are and how hard they work. Individuals have the right to make as much money as possible and to keep the money they earn. People are taxed on their earnings but in the USA the level of taxation is low. But not everyone thrives in this system. Some live in poverty and the low levels of taxation mean that there is little healthcare and benefits provision for them - much less than in Britain.

This clip is from:
Bitesize: Modern Studies
First broadcast:
26 October 2007

Pupils could compare the current capitalist system in the USA with that of a modern Communist state. Compare both these systems, to those that existed in the 1980s. How have both economic systems changed since that time? Are people in Communist states today any freer than they were in the 1980s? Pupils could then be asked to draw a plan or make a model showing how they believe an economy should ideally be run.