A Capitalist Economy vs Socialist Economy Essay

There is a vast difference between the economic systems of capitalism and socialism. While both are ways to govern a country’s market, they vary tremendously when looked at in depth. Capitalism is more effective and it encourages business growth and economic risk.

However, believers in socialism would completely disagree with this ideal. Socialism is the economic system in which the workers, instead of a rich minority of entrepreneurs, own all industry. Workers receive the full fruits of their labors instead of being given miniscule compensation for backbreaking labor. Since the people are paid well for their work, work becomes a cooperative entity where people come to rely on one another and people actually are more inclined to do their fair share to help the advancement of society as a whole.

Although socialism may have better benefits, capitalism has it perks as well. Such as producers and consumers being able to own their own business. The upside of this is that no one other than the government can take the business away from the owner. This results in more rights for the owner. An example of improved rights of the owner could include the owner making their own regulations, deciding wages for employees, choosing how to insure their business, etc. Now the big picture that this focuses greater upon is that it greatly promotes self-interest, rather than government control.

Socialism allows the government to regulate all aspects of production, sales, and wages. Socialism is used to benefit the people as a whole, not as individuals. Economic equalization eliminates income inequality by lessening income extremes by creating a collective mentality among the people. Implementing socialism protects the middle and lower classes from poverty and prevents the wealthy from accruing too much power by creating shared responsibilities, social programs, and incomes; its unseen flaw is limiting the aspirations of society (Socialism UXL). In a traditional capitalist economy, wealthy elites hold political power; the elimination of economic elitists voids political elitists. Opposers argue that socialism isn’t fair. Wealth is equally distributed among the people due to government interference, despite the amount of work or career aptitude. Unlike capitalism, motivation is not a factor when there is not a direct relationship between work and outcome. Consequently, socialism clashes with natural human behavior. The lack of incentives leads to _______. Socialism is an ideology that fails through

Today using modern time philosophy and the way we think, I believe you cannot have a pure capitalist or socialist system by definition but instead run a mixed economy caring about different characteristics of the two in order to form a civilized yet, productive society.

Capitalism and Communism are both economic systems, adopted by different regions, which has played a major role in how society has been shaped in the 20th century. Capitalism, is simply an economic system where things like property and/or businesses are owned and controlled by individuals instead of the government. The United States was one of the first majorly developed regions to adopt this philosophy and it has had a huge impact on the global economy by allowing free market competition and by promoting the culture of work. Communism, is an economic system in which things like businesses and property are own and controlled by the government. Communism was adopted by the Soviet Union and played a critical role in global politics and social classes.

Capitalism, “is an economic system in which the means of production and distribution are owned by by private individuals or corporations” (“Capitalism”). Because capitalism is a framework of free markets, it allows individuals and businesses the opportunity to invest their capital, or money in whatever way they see fit in order to reap the highest possible profit. A free market economy is an economy in which the government set few restrictions on buyers and sellers in

Free market (capitalism) is a structure where the economy thrives on the forces of demand and supply. In a free market economy, it is every man for him. This means that the most successful people are the ones who work hard and smart. Socialism tends to reward every person regardless of their input in the economy. A free market economy on the other hand rewards people on the basis of their input towards economic growth. As long as there are limited resources, people will always have conflict of

Well, under a capitalist economy, when money is easier to come by, prices rise, making it just as difficult to acquire wealth as before. So, in a socialist economy, the government counteracts this by placing a price on products that are based upon the amount of wealth that is currently being controlled by the government, rather than on the amount of supply. This doesn’t work because humans will continue to buy in surplus that which is cheap, and that would lead to shortages. In a like manner, during the Nixon Administration, a price cap was placed on gasoline. As a result, people wasted it, thinking there was a surplus. They used it in excess, and it led to a major

(Social Ethics) But Socialism is more free of the sense that every able bodied worker is a worker. Capitalism has classes while Socialism is a classless society and no separation in classes. In Socialism workers will have firm control over the means of production and as well democracy. (Social Ethics)Capitalists societies according to Nielsen are further down the corporate road then many other societies. To Nielsen, Socialism would be a great society that would flourish of autonomy . Socialism interferes less in peoples exercise of autonomy then capitalism. Capitalists put a limitation on human freedoms and their being able to live in a self directed manner. If in charge Socialism would prohibit the capitalists from buying and selling and to control the labor market. (Social Ethics) In this society workers would determine how they work, on what they are to work, the hours they work and what conditions they are to work and what they will produce and how much and what will be done with it after. (Social Ethics)With Public ownership means that everyone will have the right to work and no longer the private rights of corporations. Socialism will produce more equality than

Socialism, in which government manages public programs, has led to a community with no incentive to work. Take for example communities in a case study in the United Kingdom which has zero people employed and in some cases there are three generations of those on welfare within a household (Burke 2014). Likewise, the wealthy created by a capitalist society, in which business is the driving factor, pass down wealth to their children. That child can then live a lazy self-seeking life for he already has what he needs. These systems have created citizen that will no long contribute. This provides no economic justice to the middle class who are still required to work hard and subsidize others. Additionally, communist, in which government redistributes wealth, possess no need to put forth effort, for regardless of my work, I will receive the same as everyone else. These forms of government place need on government or the individual and not the community in which we function. Placing greater influence on the individual has led toward self-centered and power seeking people which provide not benefit to society (Burke

Capitalism is the more morally adequate system because it values the individual liberties of each man above the power of a centralized government. In theory, Capitalism is the ideal economic situation because it enables, as Smith argued, the competitive free market to keep one another in check and gradually increase the standard of living. It is under capitalism, that true social justice is achieved, where individuals are rewarded based upon their labor, while it is socialism which suppresses the potential of individuals. Theoretically, Capitalism gives more power to the individual and enables individuals, not necessarily grants, but enables all individuals the pursuit of happiness. It is far more preferred to live a life of poverty and hold sovereignty, than a life of wealth, but as a

In seeking to highlight the key differences between socialism and capitalism, it would be prudent to first offer a concise definition of the two terms. Capitalism in the words of Brinkerhoff, White, Ortega, and Weitz (2007) "is the economic system in which most wealth (land, capital, and labor) is private property, to be used by its owners to maximize their own gain." As the authors in this case further point out, this particular economic system is largely founded on competition. Socialism on the other hand is defined as "an economic structure in which productive tools are owned and managed by the workers and used for the collective good" (Brinkerhoff et al., 2007). From the definitions, it is clear that unlike capitalism, socialism favors a situation whereby there is deliberate control as well as planning of economic activities on behalf of the entire community. In the case of capitalism, no attempt is made to have economic activities controlled from a central point on behalf of the community. Here, enterprises are allowed to compete in the supply of goods and services as they seek to rake in monetary returns. The key

As time goes, the politics is divided by socialist and capitalist. For example, European is capitalist politically and has free marketplace in dominance and China is socialist politically which means government is taking control. In the capitalism countries, the corporate can control profit and market system and produce goods or services according to demands. In the beginning,individual companies have their own consumers. As industry increases, they have many competition. Now the global capitalist politically countries use international trade to rise profit in the internet. In the global market, The currencies and stock are both factors being considered for a company. In the capitalism countries, individuals have rights and entitlement. The private property is not limited to cars houses, but also machine factors and stock. They can spend money to produce more services.They can also make decisions by themselves. Most companies want to make more profit. Thus, the competition appears in the market. When the companies are in the competitions, they will consider ways to reduce competition or increase strength. Maybe they will keep price in the rational range or pay better wages to worker to get products more efficiently. In the capitalism, a perfect company must have moral justification and the natural right to property. And one more thing, invisible hand depends on the division of labor market to achieve wealthy. The criticism of capitalist has inequality, for instance, the

Capitalism is when the rich gets richer and the poor gets poorer. Capitalism has mercy on no one. Each individual lives in a society where the mass crowd complain about how the big business are buying the smaller ones but just doesn’t grasp the idea that all this is happening because of the consumers themselves. Within a system just as there is pros there are also cons, cons that are costly in the end. One of the biggest cons that capitalism promote is wealth inequality. Wealth can be inherited, so some people can be rich just due to luck of their ancestors. The others that are not so lucky has to work hard for their earnings. So this becomes a problem because not only does it promotes wealth inequality, it also promotes inequality of opportunity. Capitalist societies are failing to create both equality of outcomes and equality of opportunities. Example of this is the Great depression which lasted from 1929 to the beginning of World War II, profoundly shook the world’s confidence in the capitalist system. The crisis began with the crash of the New York stock market and resulted in widespread economic damage throughout the world, including bank failures, massive unemployment, and bankruptcies. According to the article Capitalism it states, “In addition, the suffering that resulted from the Great Depression highlighted the vulnerability of the labor force. In the United States, 25 percent of workers lost their jobs, and bank failures wiped out many people’s life savings.”