As for Government in business: governments running and profiting from Prisons (manufacturing and various services), Schools, Banking, Media and Security Services (police, etc.) what's left for anyone else to do? Could the problem with the economy be that Government being in business puts so many out of business and out of jobs as to promote poverty and economic dry spells? Oh wait, didn't the Communists in the Soviet Union pretty much run every 'business' in town?
From the horses mouth? Capitalism is Socialism. Socialism ~= Communism. Freedom of trade and exchange is none of the above. The idea of Capitalism being "freedom of exchange and trade" in a society is one of the biggest deceptions. Capitalism, Socialism and Communism (i.e. Materialism or Resource Control-Ism) all deal with placing control over resources in the hands of a few rather than keeping Government to the business of governing or keeping things lawful and equitable. Free trade and exchange in a society is about fundamental right. Capitalism, Socialism and Communism have the majority going "ooh and ahh" while a minority hijack, rape and pillage their society, landscape and resources.Nobody has combatted State Socialism more than we German Socialists; nobody has shown more distinctively than I, that State Socialism is really State capitalism! (Wilhelm Liebknecht - 1896)
The term {State Capitalism} is not used by the classical liberals to describe the public ownership of the means of production. The Austrian School economist Ludwig von Mises explained the reason: "The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism—until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism." It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from ... Socialism.