During the 19th and 20th centuries, many countries revolted against their previous leadership, and gained independence from their former rulers. An incredibly popular form of government has been socialism. In this paper, I will examine the differences between socialism and capitalism. Socialism, by Merriam-Webster dictionary, is defined as “Any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.” Also, capitalism is defined as “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods
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As the government takes from the wealthy people, before they give anything to the poor, they take their share, filter it through their abundant employees, and by the time it reaches the rest of the people, it’s pennies on the dollar.
As fundamental a problem as it is, it is not the whole reason socialism fails. If you were a poor citizen in a socialist country, you have no reason to invest yourself more that you are required. There is no incentive to do better, you can’t improve your own position, your hard work will do you no good.
On the other hand, capitalism gives you hope for a better life. You can start a business, and even if you don’t immediately succeed, it will be left to your family, and it gives them a better start than you had. Many people came to America because of this, the American dream.
An extreme example of this, is Alexey Pajitnov. Pajitnov invented Tetris, which, according to CNBC, sold over 35 million copies on the Gameboy. Since Pajitnov lived in Russia, he didn’t collect royalties for his immensely successful game, the USSR, United Soviet Socialist Republics, collected the royalty checks, and used the money for the country. If Pajitnov had lived in the USA, he would’ve been a …show more content…
Consider this, rich person worked extraordinarily hard to earn what they currently have, people aren’t born rich. Although some people in America were born into a rich family, somewhere down the line, they were poor and were forced to work their way up.
A portion of the poor are in their position because they weren’t the one that put in the extra hours to better themselves and their family, they’re there because of their own laziness. So when the government steals from the productive to give to the unproductive, it doesn’t work. It would be comparable to continually making an awful investment, when it is known that it won’t work.
Some people in the US claim that in capitalism, companies overcharge for their product, but in reality, companies can’t overcharge in a free market. In a free market, there are other companies that will produce the same product and try to do it as cheap as they possibly can so that it will sell more than the other company. As an example, let’s use a loaf of bread. In a completely free market, that loaf of bread will sell only for what the consumer is willing to pay for it. If the bakery charges $2 for a loaf of bread, but the consumer is only willing to pay $1, he’ll either find someone who sells it cheaper, or he’ll spend his money on something
As the government takes from the wealthy people, before they give anything to the poor, they take their share, filter it through their abundant employees, and by the time it reaches the rest of the people, it’s pennies on the dollar.
As fundamental a problem as it is, it is not the whole reason socialism fails. If you were a poor citizen in a socialist country, you have no reason to invest yourself more that you are required. There is no incentive to do better, you can’t improve your own position, your hard work will do you no good.
On the other hand, capitalism gives you hope for a better life. You can start a business, and even if you don’t immediately succeed, it will be left to your family, and it gives them a better start than you had. Many people came to America because of this, the American dream.
An extreme example of this, is Alexey Pajitnov. Pajitnov invented Tetris, which, according to CNBC, sold over 35 million copies on the Gameboy. Since Pajitnov lived in Russia, he didn’t collect royalties for his immensely successful game, the USSR, United Soviet Socialist Republics, collected the royalty checks, and used the money for the country. If Pajitnov had lived in the USA, he would’ve been a …show more content…
Consider this, rich person worked extraordinarily hard to earn what they currently have, people aren’t born rich. Although some people in America were born into a rich family, somewhere down the line, they were poor and were forced to work their way up.
A portion of the poor are in their position because they weren’t the one that put in the extra hours to better themselves and their family, they’re there because of their own laziness. So when the government steals from the productive to give to the unproductive, it doesn’t work. It would be comparable to continually making an awful investment, when it is known that it won’t work.
Some people in the US claim that in capitalism, companies overcharge for their product, but in reality, companies can’t overcharge in a free market. In a free market, there are other companies that will produce the same product and try to do it as cheap as they possibly can so that it will sell more than the other company. As an example, let’s use a loaf of bread. In a completely free market, that loaf of bread will sell only for what the consumer is willing to pay for it. If the bakery charges $2 for a loaf of bread, but the consumer is only willing to pay $1, he’ll either find someone who sells it cheaper, or he’ll spend his money on something