Very Basic Economics

I have been frustrated by the lack of understanding concerning economics. I am no economist, but I try to understand that which feeds me. Because we have an election in the US soon, we hear lots of talk about the economy. We live in a free market (good thing) capitalist society. I say it is a good thing because once the negatives are weighed against the positives, the vast majority of people are allowed to participate in the system with opportunity to earn decent money. So why the post? To discuss what the alternatives are.

When you boil it all down, economic systems define how money is pooled for the purposes of economic development. Capitalism allows the private sector to come up with economic ideas and raise the money (capital) to complete said project. Communism/Socialism has the central gov't plan the ideas and raise the money (taxes) to complete said project. Basically, it comes down to power. Do you want power centralized in one entity, or do you want power devolved to the people?

Both side argue that their system gives power to the people. Communist/Socialists believe that the government is the people and has the peoples interest in mind when making decisions. Capitalists believe the markets give power to the people because power is taken away from the government when individuals have economic freedoms.

I am an avowed free marketeer. The basic reason is power and how it can be concentrated. When a government is formed, it is endowed with the intrinsic right to enforce the law at the point of a gun. Thus, the people must conform to the government's idea of economic planning or face the gulag. Philosophically, I believe the community knows best its needs and will better generate ideas on how to fill those needs compared to a faceless central gov't with guns.