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Compare capitalism, socialism and communism
Compare capitalism, socialism and communism
Diversity and human relations
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Throughout history the world has experienced several types of socio-economies, from Mussolini’s fascism to Mao’s communism. All of those economies have its weaknesses and strengths and most have countries that can validate its effectiveness. However, to decide which economy is truly better for society, there has to be criteria on which to judge the economy’s effectiveness. So what is a society? In essence, it is a network of bonds we as human beings forged under the assumption, that working together we can all be happier than if we were only looking out for ourselves. With society, everyone is able to concentrate on what they do best, reap the benefits from the skills of others, and avoid the conflict that would arise otherwise. Thus, it follows that the ultimate goal of society is the happiness of everyone. And currently, there is only one economy that has staved off the test of time and reached that goal. Capitalism, with its merit system, flexible cost adjustments, and by having no other economic contenders is able to achieve a better society than any other socio-economic system can. By having an economic system that rewards merit rather than mediocrity, capitalism stimulates the market as well as individuals to progress, thus improving the overall welfare of society. In a capitalist society, it is the people that produce that get rewarded. Entrepreneurs or companies that come up with a new product, give people a service they want, or entertain them better than elsewhere will be paid generously for it. Because of this free market, it gives people incentives to work hard, innovate, and invest - all for a profit. This self organization of the economy creates more prosperity not only for people behind the idea, but also for peopl... ... middle of paper ... ...it is estimated in the United States that the richest 1 percent controls 38 percent of the wealth; the top 20 percent controls 83 percent. With such enormous sums of money concentrated in a fraction of the population comes immense economic, social, and political power for that small portion of society. In a socialist state, however, the government regulates the market, controls the means of production, and distributes the wealth on a more equal basis, so that wealth is not concentrated in the hands of only a small percentage of society. Works Cited http://web.a.ebscohost.com/pov/detail?sid=3676e4cb-45c8-41b0-ab8c-719e32fd8b1e%40sessionmgr4004&vid=1&hid=4101&bdata=JnNpdGU9cG92LWxpdmU%3d#db=pwh&AN=43268219 http://web.a.ebscohost.com/pov/detail?sid=15bd12f2-15cf-4dbf-937c-2ea9e45870b8%40sessionmgr4001&vid=1&hid=4114&bdata=JnNpdGU9cG92LWxpdmU%3d#db=pwh&AN=43268220
Incentives are really what drives the capitalistic economy. There are incentives in every facet in a capitalistic economy. In a free enterprise system there is a huge financial incentive to work hard and create an effective business. While having a successful business the business owner gets to keep all of the money his business earns. So there is large incentive to take a chance and create a business that could make money for the risk taker. But incentives do not only reach the risk takers of the world. There is incentives for any employees, for instance if an employee works hard and works longer than expected for overtime, the worker gets compensated extra for that extra work and extra time that has been put in. Incentives not only push people to take risks, but also incentives push people to work harder and give more effort into their job. The free economy system is based on incentives and without having something to work for there ...
...es. By adapting socialist ideals into a capitalist economic and social system a prosperous society results.
A Comparison of Communism versus Capitalism Communism versus Capitalism is a debate that has raged on for over two centuries. Whether to allow everyone equal opportunities and to do with those opportunities as they please or to mandate class equality in order to keep peace has in itself been the cause of war. Karl Marx and Friedrich Engels saw the working class of the world—the proletariat—being squashed by the greedy business owners—the bourgeoisie. In their view, the bourgeoisie owned too much and the proletariat had no chance to make their own fortunes. In Marx and Engels Communist Manifesto, they propose doing away with private property, nationality, and even countries in order to take power away from the bourgeoisie.
The economic structure referred to as Socialism is the system where the ownership of goods and the means of production are shared by the citizens of a society. Socialism is often regarded as the contrasting society compared to Capitalism. It is generally considered the theory that, when in practice, is run and controlled entirely by the government. To understand socialism and its potential effects as a movement, system, or theory, within a society, it helps to know the meaning behind other society shaping factors. Economic Freedom is social right that can affect a society’s economic liberty. Economic Freedom can be described as the availability of great opportunities and the ability to achieve an improved quality of life. There is no universally
All throughout history, socialist ideas and governments have made several appearances all around the globe. “A French revolutionary named François Noël Babeuf is credited with the idea of doing away with private property to create equality and is often considered the first socialist” (Hoyt 3). Although the socialist ideas may have existed before Babeuf, he was the first recorded person with the ideology. Since he came up with the ideals of socialism, it is logical that he is considered the creator and first socialist. However, “the concept wasn't popularized until the late 1700s, when the Industrial Revolution caused some drastic changes around the world” (Hoyt 3). When the Industrial Revolution took place, a separation formed between the rich and poor, creating inequality. Since the Industrial Revolution was a time of change and separation, it is logical that people vouched for a change to socialism. “By the early 1900s, the disparity of wealth in the United States was growing even more obvious, and so...
(http://www.jstor.org/pss/3445938) While socialism seeks for social equality and education, capitalism is more effective for building strong nations. The elements which constitute its success are private ownership, personal incentive and individual reward, and a competitive spirit among people.
“Socialism.” Wikipedia, The Free Encyclopedia. 30 Jan. 2012. Wikimedia Foundation, Inc. 2 Feb. 2012. .
The perfect society is something many people have dreamed of. A society where everyone got
...ow to use their money, where capitalism, that is the whole point. Under capitalism wealth and power exists, where socialism every person is equal. A faultless mix between the two would be ideal.
Capitalism dominates the world today. Known as a system to create wealth, capitalism’s main purpose is to increase profits through land, labor and free market. It is a replacement of feudalism and slavery. It promises to provide equality and increases living standards through equal exchanges, technological innovations and mass productions. However, taking a look at the global economy today, one can clearly see the disparity between developed and developing countries, and the persistence of poverty throughout the world despite the existence of abundant wealth. This modern issue was predicted and explained a hundred and fifty years ago in Karl Marx’s Capital.
Socialism consists of the government gaining full authority over goods management and profits, resulting in shared earnings among society. As stated on howstuffworks.com, “government controls all means of production and distribution of goods”, (Alia Hoyt). Contrary to the positive aspects of socialism, like shared earnings and social security, a drawback is that it can easily hinder ambition, because no matter how hard you work or how much you make, you may not get any further ahead. However, capitalism lets individuals have full control over their earnings instead of the government and also allows them to prosper at their strong suits, being able to make a well deserved living. This is the reason behind why many people believe, “it is the only moral and just social system”, (C. Bradley
There is a long-running debate about whether communism or capitalism is preferable and shows more of beneficial aspects. Capitalism is defined as an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations. While communism is a system of social organization in which all economic and social activity is controlled by the state. The principle of capitalism is if one is successful and hardworking will keep improve and progress in life. While the principle of communism is to keep all the people the same, a lot of people may say that this is a good thing but when talking about real life this would add laziness and demotivation because hardworking people would gain the same credit as lazy people. Capitalism and communism are the two main economic systems that are used by governments nowadays. Obviously capitalism is a much better economic system to be used by a state; practical uses and statistical facts qualify capitalism as much more successful. Also, capitalism is more beneficial to the state, common citizens, and business owners. It would be very useful to test the two systems according to practical uses of the two systems on states and monitor which states succeeded and which states failed.
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.
Socialism also believes that wealth and income should be shared more equally among the people. Socialists differ from communists in that they do not believe the workers will overthrow capitalists. Nor do they believe that all private property should be eliminated, their main goal is to narrow, not totally eliminate, the gap between the rich and the poor. The Socialist rule believes that the government has a responsibility to redistribute wealth to make society more fair and just. There is no purely capitalist or communist economy in the world today. The capitalist United States has a Social Security system and a government-owned postal service. Communist China now allows its citizens to keep some of the profits they earn. These categories are models designed to shed greater light on differing economic
Capitalism is a democratic system of government that lets you privately own property. The capitalist government is driven by free enterprise. So free choice and decisions are made without being persecuted for it. There are many benefits to capitalism. It gives opportunities for Economic Development. Individuals are able to gain money on how hard they work. Jobs can be better for people because With living in a capitalist country people have a lot of freedoms like freedom to say when and what a citizens want. Also to believe what the people of a capitalist want and they freedom to make independent choices. Capitalism is better than communism by far because it gives citizen rights, freedoms and choices. Capitalism is better than communism because there is room for greater economic development for the society, room for independent wealth, and room for individualism apart from the