Essay The Efficiency of Economic Systems

A Capitalist Economy vs Socialist Economy There are a variety of economic systems today, which can influence how prosperous we will be as individuals or as a group. Socialism is an economic system where the government will be greatly involved in the economy. In a socialist economy the government can control many industries, provide public institutions such as health care and education, and equalize incomes of the population. A socialist economy is one of low unemployment and stability, where the government sets production quotas and price regulation upon their perception of the needs of the economy.

Capitalism is the best economic system for any country because it allows individuals to make their own business decisions, and be self-motivated, it confines the authority owned by the government. Capitalist countries are more technologically advanced and better educated as compared to socialist countries. Capitalism is different from socialism in many respects.

The economic system, in which the trade and industry are owned and controlled by private individuals is known as Capitalism. Socialism, on the other hand, is also an economic system, where the economic activities are owned and regulated by the state itself.

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.

The major differences between the two are their preferred styles of government, capitalism and communism. The major difference between the two is their view on economic production. In Communism, the central government controls all production and determines what goods the economy should produce, as well as the price of those goods. Meanwhile, Capitalism allows the market decide what goods should

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.

Many countries have had a socialist government before, but have since abandoned it, including the former USSR, East Germany, and Czechoslovakia. The Cold War is a good example of the differences and tensions between socialism and capitalism. The Cold War happened immediately after World War two between the Soviet Union and the United States, and ended in the early 1990s, after the falling of the Berlin Wall. There was never any large scale fighting between the two sides, but there were nuclear threats and several regional wars fought by allies of the two sides. The Cold War began when the Soviet Union attempted to enforce socialism or communism into Eastern Europe, and the United States, a capitalist and traditionally anti-socialist/communist nation, tried

Socialism can assist all people fairly instead of certain individuals rising above the majority. The government owns the means of production of manufacturing and goods, which makes the factories and other public properties stable as they would only fail if it the government failed. Also, socialism is what allows infrastructure, such as roads and public schools, to be built by the people for the benefit of all people, and the military, that protects all people in the country, is the same case.

Socialism and Free Market Capitalism are two very different economic schools of thoughts. The biggest disagreement between these two schools is economic equality and the role of the government. Socialisms’ originated as a social organization based on the holding of most property in common, with actual ownership given to the workers and their main principle is equality. In contrast, free market capitalism is a theory based around a free market and privatization in which ownership is given to the individual people and their main principle is individual rights.

Socialism came from a huge variety of influences.The ideas of socialism came from a few men who believed in a utopia. They believed worker's conditions improve if production was controlled by the government. Socialism also believed in common ownership of something. There’s different types of socialism ideals. One is the state directed economy which either state or work cooperatives owns production but is directed by the government. The other is de-centralized economy of which the ownership of enterprises is accomplished forms of cooperative workers. Socialism and communism has the same ideals for their country. They both believed in a perfect or utopian society. The government owns everything including their people and production. Socialism believed an ideal government, controlling all means of production and their own people.

One difficulty for Americans in understanding the rise of Capitalism in the United States is the very fact that Capitalism is a system. Adam Smith once explained that "a system is an imaginary machine invented to connect together in the fancy those different movements and effects which are already in reality performed" (p.352 Smith). Thus, economic systems are not fixed representations like constellations of stars, each essential part of which is visible to the viewer. Instead, they are combinations of real actions and mental interconnections. Since the whole machine "works," one would consider its existence to be beyond dispute. The opposite is true. Now that you have been briefed on some ‘American Capitalist’ history, let’s throw around some viewpoints and history about Socialism.

In a market economy there is little government control while in a command economy there is total government control. Socialism addresses the FOR WHOM question exactly. A big advantage to capitalism is that they give you more freedom than communism and socialism combined. If you want to have freedom you will chose to live in a market economy, and if you want the government to control everything you do, you will decide to live in a command

Socialism is the economic system defined by co-ownership and unified organization of all major industries and institution (demands, energy, services and manufacturing), this includes all public medical facilities, education, the media, insurances companies and transportation. Under a capitalist hold, these industries are privately owned generally monopolize the economy and exploited to their fullest extent. This creates unnecessarily distorted profit made off some of what should be considered a basic human right. Socialism, or socialist programs, turns this uneven profit around. All industries and institutions are publically owned and all profits are filtered back into the system for the benefit of all citizens. With this redistributed wealth comes universality.

Accordingly, one idea or fact that is often raised to differentiate socialism from communism is that socialism in general is the political movement that refers to an economic system in that they believe that the state should be in charge of all important producing industries thus taking hold of the control of free market in order to promote economic parity and egalitarianism. Theoretically, socialism seeks to distribute wealth equally among its citizens in a way that the rich don’t take

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