Essay on Is Socialism a Justifiable Response to Capitalism?

678 Words May 8th, 2012 3 Pages
Is Socialism a justifiable response to Capitalism?

An economic system is the combination of the various agencies, entities that provide the economic structure that defines the social community. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. The economics system involves production, allocation of economic inputs, distribution, consumption of goods and services in an economy.
An economic system is a set of principles by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources. An economic system is composed of people, institutions, rules, and relationships. Examples of contemporary economic
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Individuals and firms have the right to own and use wealth to earn income and to sell and purchase labor for wages with little or no government control. The function of regulating the economy is then achieved mainly through the operation of market forces where prices and profit dictate where and how resources are used and allocated. The U.S. is a capitalistic system.
Various state capitalist economies, which consist of large commercial state enterprises that operate according to the laws of capitalism and pursue profits, have evolved in countries that have been influenced by various elected socialist political parties and their economic reforms. The result has been a set of economic institutions that were at least partly influenced by socialist ideology. An example of such countries is India after it gained its independence from Britain, Singapore where government owned companies generated most of the country's GDP and the former country of Yugoslavia where the management of a firm was elected by directly by the workers in each firm, and were later organized according to Edvard Kardelj's theory of associated labor. Most of these counties are turning more into capitalist countries but were initially directed and managed through socialist economic system. Socialist economic systems have been

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