Well, I helped start this mess, so I guess I got to wade in a bit. There are so many interesting subjects touched upon here that it is hard for me to pick just which one I have time for, so here it goes.
Let us discuss the issue of earning versus entitlement or, more exactly, the means in which to distribute wealth. The essential mechanism for all of civilization is the artificial redistribution of wealth - shared resources. No society can exist without transfering goods from one place to another. Only subsistence farming families who harvest all of their own personal resources can exist in a social vacuum. That means no villages, no cities, no armies, no set standards. Anarchy, where your family has their little plot of paradise and has to defend it from all comers. Now, whether we individually believe that people have to earn their keep or are entitled to some level of basic ammenities (food, shelter, education, employment, health care, things like that) is trickier, but we should all agree on the fact that for people to live together in communities they must share resources somehow! Right?
The key difference between a theoretical pure capitalist state, a state of near total private ownership of resources where the government provides security, law enforcement, and a set monetary standard, and a pure communist state, where the government controls all resources and there is no private ownership, is to whom the common citizen relies in order to "earn" his living.
In a pure capitalist society, the citizen works for an employer who pays a wage and/or some benefits. It is then the responsibility of the citizen to procure his own basic needs: to buy his food, to pay his rent, to contract services such as cable TV, to pay for his own health care, the list goes on and on. The point being is that a myriad of private contractors (merchants, landlords, doctors, so forth) fulfill these requests. This myriad of private contractors provide for immense consumer choice. If the citizen has no employment, then he cannot procure these services and must rely on whatever charity is willing to provide until new employment is gained. This means that the citizen could be in dire trouble and die on the side of the road in a ditch from hunger or neglect and the pure capitalist government cares not. Hope you got folks like family or friends to help you out, because there is no government social safety net.
In the pure communist form of government, the citizen's "employer" IS the government. The government feeds you, houses you, educates you, treats your illnesses, gives you a job. In return for all this wonderful social support, choice is lost. The government dictates who you work for and what services will be available to you. Want to be a lawyer? Tough, the State has decided that since you are a farmer's son who has mechanical experience you are destined to be a tractor mechanic. Need a quadruple bypass? Tough again, the State has decided that no mere factory worker is worth such an advanced and expensive procedure. Want satellite TV? So sad. The State offers basic broadcast in the country side and cable in the capital. You get everything you need for basic survival, but no choices.
The example should clearly illustrate the FLOW of wealth in these theoretical forms of government. The pure capitalist form has wealth and resources flowing sideways through interconnecting layers of producers and consumers. (All producers are also consumers, and all consumers are producers. This is why it is interconnected. Think about it.) The pure communist form has wealth flowing only from the top. (The producers give everything to the government first, which redistributes it to the consumer in a manner of the government's choosing.)
Now, in every society there is an elite class that skims the goods. This is partly why Soviet Communism failed: the party cronies kept taking the creme and letting the rest of the milk sour. This is also why cutthroat capitalism of the late 19th century in America also failed: corporate barons where trying to own all the means of production so that the interconnected flow of wealth between producers and consumers was trying to be funnelled to the baron on top as he bought the other companies out and therefore was reshaping the web of connectivity by limiting choices.
It is human greed that throws the monkey wrench into things. Because of that, we can have neither a pure communist or a pure capitalist state. There cannot be a true "People's Republic" as long as cronies at the top interfere with the flow of goods down to the masses by siphoning off way more than their share. There cannot be a true "free market economy" as long as megacorporations seek to deliberately restrict consumer choice. So both camps try to have something in the middle.
And to think I did not even get into international policy issues such as farm subsidies and tariffs. Merely talking about internal national policy theory can be quite thought provoking, I think. :notsure: