Disadvantages Of Capitalism And Socialism
The main difference between both of them moves around the government role and economies equality. Capitalism affords economic freedom, consumer choice, and economic growth. Socialism economy is controlled but the state and central planning authority planned it and it gives social welfare.
Capitalism is characterized in the following ways:
Capitalism is made up of buyers and sellers and it’s basically a market based economy.
The profit is made by the goods and services and in that economy profit is reinvested.
The government must not interfere in the economy of free market.
To operate effectively there is essential need for continuous purchase and production for capitalist economy.
• Choice of consumer
• Economies Efficiency
• Growth and Expansion of economy
• Recession …show more content…
Already by the late 1980s, when the differences in performance and social organization between the West German economy and its main competitors came to be widely noticed, the continued economic viability of the ‘German model’ began to appear doubtful to many. Shortly thereafter, the survival of the German version of advanced capitalism became tied to its successful extension to the former East Germany. With the 1992 completion of the European Internal Market, it became in addition dependent on the compatibility of German economic institutions with the emerging regime of the integrated European economy. At the time of unification, West Germany was the internationally most successful of the major