Economic Systems: Communism

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...

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...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

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