Disadvantages Of Capitalism And Capitalism

Capitalism vs. Socialism

Capitalism allows the economy to experience growth and freedom. The economy is made by buyers, people, and sellers. This allows consumers to have a choice. All products are produced to create a profit. Then the profit is invested back into the economy. Capitalism is a free market. This means the market chooses to invest, produce a product, sell or trade products, and economic decisions. The only time the Government is allowed is to create and enforce policies/rules is when it comes to the oversight of business. In order to have a thriving economy, there is a need for a constant purchase and production.

Socialism is a formal economic system that ends up in failure. It gives economy greater social welfare and fewer business instabilities. The Individuals of this economy are paid by the principal of their contribution. Socialism allows people to be equal. Socialist beliefs the economic inequality can be unethical for society and the government reduces it by creating programs to help the poor for example, social security benefits and Medicare. The economy’s activity and production are based on individual intake and demands. It is planned by the Central Planning Authority.

Advantages of Capitalism

Some advantages of Capitalism include consumer choice, the efficiency of economics, and

Higher efficiency comes from setting goals and the production decisions made to succeeding that goal. Social welfare, the government creates programs to help the poor with living requirements. Such as, health care, disability, programs to provide food, programs that can help if they are struggling month to month, child care, and more. This allows the government to keep the economy equal. Since everyone is equal there is no monopoly power. Business cannot raise prices on goods and services just because they are the only one who can provide that good or