This is probably correct, or at least I feel it is. Problem is the line is harder to draw, and therefore harder to explain to people. Laissez-faire capitalism is minimal government interference in business (do what you want). Communism is no more private property, government runs all the businesses (the state takes care of everything).
Those are easy to explain to someone. There doesn't seem to be a bright and simple line to what we're imagining. You and I can look at a business practice and say "this is wrong, this harms the larger society", mostly because it's a gut reaction. But it isn't always easy to slot it into a neat, simple category. The explanation takes too long. The story has to be simple when selling something to people. We need a simpler way of explaining it, catchy sales pitch. A way to point at something and say, "This is an example of how it should (or shouldn't) be done under this system because X."
