Theoretically, there are many different types of practical economic systems that can benefit society. One of the main economic systems is socialism. There are several branches of socialism including, the political theory of communism. Communism is a way of running the government using the socialist way of thinking. But, communism is very hard to implement and maintain. In a functioning communist society, all the citizens of this society would all be on the same level and would be paid equally according to their job and needs. On the other side of the spectrum, there is the capitalist society, where the citizens get what they earn and everyone takes care of themselves. In today’s societies around the world, there is no true capitalist, nor socialist …show more content…
In general “capitalism believes in private ownership of land and means of production.” Contrary to the communist, the capitalist is a system that is dominated by the business of the private sector. Although a private economic society may seen like a bad thing, it actually has many benefits. In a capitalist society, the economy has much more room for growth. The system also promotes competition, and thus the harder you work the more money you can make. And finally, gives a chance for the consumer to regulate the market. Growth in the economy has much more potential in a capitalist society because it grants the ability of business freedom with no interruption from the government. Also, capitalism is much more appealing to the average person. Who wouldn 't want to be making the most money that they possibly could?Currently, society is driven by capitalism and is restricted by communism. Having a capitalist society driving the economy, creates competition between business. This forces businesses to do the best they possibly can, and thus creating a more active market for the company, as well as for the consumer. Hard work is rewarded when you are in a socialist economy. For example, “Entrepreneurs who pitch well and are able to do better with their businesses, are the undoubtedly winners.” Unlike a communist society, where two people with the same job: one person does an amazing job, and the other person does a poor job, but in the end they both get paid the same, because they are in a communist society where everyone gets an equal wage. A true capitalist in this society enriches society by supplying items/services of great value, the capitalist would receive accordingly. Lastly, as a consumer being able to regulate the market in a capitalist society, this encourages you to set achievable goals towards better financial freedom. With greater financial
Throughout the 19th century, capitalism seemed like an economic utopia for some, but on the other hand some saw it as a troublesome whirlpool that would lead to bigger problems. The development of capitalism in popular countries such as in England brought the idea that the supply and demand exchange systems could work in most trade based countries. Other countries such as Russia thought that the proletariats and bourgeoisie could not co-exist with demand for power and land, and eventually resorted to communism in the early 20th century. Although many different systems were available to the countries in need of economic change, a majority of them found the right system for their needs. And when capitalist societies began to take full swing, some classes did not benefit as well as others and this resulted in a vast amount of proletariats looking for work. Capitalists societies are for certain a win-loss system, and many people did not like the change from having there society changed to a government controlled money hungry system. On the other hand, the demand for labor brought the bourgeoisie large profits because they could pay out as much as they wanted for labor.
While it is great that citizens live under similar economic terms and are assured of the same paycheck every week, communism is not an environment that will allow businesses or people to flourish. On the opposite side of a Capitalist society, where businesses are able to skyrocket earnings, a Communist society affects businesses ability to grow. If each worker is given the same amount of money, this can affect their motivation to do things and go above and beyond. Everyone who earns the same amount of money for the same amount of work seems like a peaceful agreement and a proletariat paradise, but it does not always turn out that way. Unfortunately, communism can often lead to widespread corruption and sometimes encourages greed.
Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.
The richest of humanity see the most of improvements, and the poorest of humanity see the least of these improvements. Through capitalism the world has changed tremendously in a short amount of time. A host of new technology has been innovated, especially in the last 100 years. Humanity as a whole is much better off than it was before. As an example, most of us are able to take an airplane to travel from one country to another in one day or have fairly easy access to advanced health care. In a word, like Bill Gates said in his article “How to Fix Capitalism”, “Capitalism has improved the lives of billions of people- something that’s easy to forget”(Gates). But, it is not getting better fast enough, and it is not getting better for everyone. A multitude of people live on less than a dollar a day and it can be extremely hard for a person in such a situation to drag themselves out of poverty without help from others. Capitalism has the ability to harness self-interest in a helpful and sustainable way but only on beh...
For this reason, conflicts are bound to arise because not everyone is getting what they want. This unsettlement and resentment will eventually lead to the inevitable economic disorder we see today as described by Karl Marx over 100 years ago. The capitalist Society initially promised that everyone will benefit, that we will all become wealthy as long as we put in the hard work. It is through our hard work and dedication where success will come. We’ve evolved away from the old feudal ways where you were just born into you economic background and you would remain there until you next life. This old idea of feudalism was abolished because we realize that we are all created equal, what makes you royal is your flesh and blood is the same as I. Feudalism also did not promote any incentive to work hard because you only produced enough for your king and for yourself. Eventually people had their wants and Hennce the inevitable birth of Modern day Capitalism. Through first forms of trading in the medieval time with other kingdoms, we saw early forms of specialism. Like how modern day countries have their very own specialized good, Saudi Arabia with their oil for example, we can use these goods to trade for goods or services. What is creates is efficiency. Though Capitalism is truly a powerful and very efficient in society as we’ve produced more than we ever did, there are certain flaws that are bound arise as
When one gets down to the roots of capitalism you find that it is a form of government that allows the rich to get richer, the poor, poorer and the middle class to stay the same. Karl Marx wrote a book, Kapital about the what capitalism does to the people in a society, how it takes the humainty out of being and replaces it with x. Not only does it do that but it creates a chain of commodities, fetishisis, and alienation within a society.
Communism is an economic system where, in theory, ownership of everything (e.g. goods, industrial products, businesses, farm produce, etc.) is collectively by the Government and the payment of income is only based one’s need. In communism, individuals have little say or on say at all on what to produce, not even owning anything since ownership is only by the Government. Communism is a socio-economic structure based on classless, stateless society where the means of production are on common ownership. Therefore, communism is the idea of free society where there is no divisions, humanity is not oppressed, no need for Government or countries. A citizen earns according to their needs and gives according to their abilities to do so.
Poverty is everywhere and no matter how hard our government tries to eliminate it, it simply cannot. To do so it must first reformat itself so that it may do its job in a more efficient manor, thus helping all aspects of life. Converting our current system into a capitalistic government would in fact help alleviate the current situation.
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.
Through out history money, wealth and capital have dictated a way of life to the masses. Wealth dictated the lives that the rich lived and the lives of the poor that worked for and surrounded them. In some cultures your class could never be escaped in life, you had to wait for your next incarnation, while in other cultures the idea of wealth transcended a life and allowed for growth from one class to another. This is the reality of a capitalist society that was first discussed by Karl Marx in the 19th century.
There has always been a debate nowadays over the topic of capitalism. Those who favor capitalism argue that it is doing more goods than bads for us. But people who criticize capitalism, on the other hand, hold...
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.
If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens. Market economies, as a whole, inherently and inevitably lead to poverty and a large class disparity. In a capitalist society, the ones who supply labor, the ones who work the hardest, are the ones who are paid the least. The owners, who are already rich, receive most of the profit and accumulate large masses of wealth.
... do not co-operate with each other, they become dysfunctional for society and can cause different social problems that led the society toward destruction. Capitalism is a modern economic system, which leave the world upset. The imperative factor of capitalist society is accumulation of wealth that results in converting money into the divine force and diminishes the value of human, morals, and values that distinguish us from animals. The drive for capital cause necessities to turn into commodities, so that, capitalists can make more capital to invest. Thus, the contribution of capitalism can be positive for those who only concern profit but not for the society because it only enhance the materialistic life and weaken the soul that teaches us ethics and morality.
One of the first and major differences between a Communist and Democratic government is their contrary economic systems. In a communist government, the community owns the major resources and means of production. The goal of such a system is to prevent any one person or group of people from becoming radically rich, while others are extremely poor. The system attempts to eliminate lower class by balancing the wealth between rich and poor, therefore giving everyone equal pay and ownership. Unfortunately, this results in an increased lower class. However, in a Democracy, free enterprising is permitted, and smiled upon. ? Here, free enterprising helps the economy to flourish. People can organize their own businesses and receive their own profits if it succeeds, or debts if it fails. In this system, the harder a person works, the more money they receive, allowing them to ‘make ends meet.’ The downside to democracy is that people can get a high paying job through education, but may work just as hard at a lower paying job and receive less money. As Winston Churchill once said, "The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." Generally, Democracy’s seem be more successful economically.