Socialism And The Second Is Capitalism

922 Words Mar 1st, 2015 4 Pages
There are to forms of economic systems that will be explained in the paper. Both of the topics will be about the origins of each form of economic system, what each hopes to achieve, and the pros and cons. The first is going to talk about socialism and the second is capitalism.
Socialism is a government run by the public rather than by private individuals. Thus, in a socialistic country, the common public owns the factors of production and makes economic decisions. Therefore individuals do not work alone, but together. Everyone in the community contributes to one another. Socialism came into being due to the success of capitalism. Socialism is the complete opposite of capitalism. Socialism believes in everyone being equal. The start of socialism was in the early 1800s, when a man by the name of Henri de Saint-Simon, thought of the idea of a society as “one large factory.” ("The Origin of Socialism." The Origin of Socialism. Constitutional Business Consulting Inc, 1999. Web. 16 Feb. 2015.)
There are four forms of socialism. The first form of socialism is European social democracy. Under European social democracy, the state has control over the majority of the economy’s industries but lets a few individuals can have an enterprise and part of the decision making. The major industries include communication and energy. When the government has too much ownership in the production, nationalism is formed. Thus creating privatization, when the government sells the nationalized…
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