Disadvantages Of Capitalism Research Paper

Improved Essays
Socialism sounds appealing in theory, but does not function well in practice. Capitalism, while not perfect, does have advantages that a socialist economy cannot provide, and creates a fair economy.
There are numerous issues that can be resolved through capitalism that cannot be solved though socialism. The most prominent being the lack of incentive found within a socialist economy. If everyone is paid the same amount of money regardless of effort, then there is no true incentive to work. If there are no rewards, for example, employees who are given bonuses to praise their hard work and successful efforts continue to work hard in order to receive another bonus. Without such incentives, people may begin to slack during their jobs without personal repercussion. Since a socialist economy dictates that everyone must be employed and paid the same amount, productivity efforts will see a drop without the added bonus that rewards hard work.
Productivity will decline within a socialist economy, because there is no incentive to work harder. The result is an economy with lazy workers who do not work to their full potential, because they will be receiving the same pay at the end of the day as they would putting in an immense amount of effort. Logically, there is no reason for
…show more content…
Those who have a high income most likely gained it through their hard work, whereas those who have a lower income likely have not risked as much as those who earn more. A capitalist economy rewards those who work hard, which then gives the individual more incentive to continue their hard work. This leads to a higher production and productivity rate within the capitalist economy when compared to the socialist economy. Incentives give individuals a reason to work hard and to strive to do better in order to achieve a higher standard of

Related Documents

  • Improved Essays

    My revision is to elaborate on the economic system portion of my review and to add additional information. In this week's assignment, I selected to address the Ledbetter vs. Goodyear Tire and Rubber Company case, where Lilly Ledbetter filed discrimination for gender pay. Capitalism and socialism both serve as a crucial part of the economic system for this setting. Some of the characteristics of capitalism are better working conditions, better wages, the profit motive, competition, and greed. In reference to the socialist theory which is practically the opposite and is not motivated by personal self-interest.…

    • 326 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Summary: Through history socialism has shown people that it is not effective in different countries around the world. A great example of this is my country Venezuela, there the government is trying to apply this type of economic system for the past 17 years, and it haven’t done anything better for the country. The country is a total disaster on the economic area and people is starving just for the fact that the government did not know how to manage their basic needs productions. This article explain how a socialism economic model is not that efficient is your government does not have the right people to administer it.…

    • 353 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Capitalism Dbq Analysis

    • 384 Words
    • 2 Pages

    Economies grow based on their political system, the political system helps set a foundation of how people live and work. There are multiple systems that countries use a they all benefit in different ways, both good and bad. Helping to create jobs for citizens, changes the economic situation and helps the workers financially. Capitalism is based on competition, one has to win the competition at achieve anything in life . Although its competitive it is made for equality, everyone should have an equal amount.…

    • 384 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Making a good profit distinguishes between barely scraping by and living comfortably. Barely scraping by is stressful and can take a toll on the relationship of a family but living comfortably would be less stressful and allow a family to spend more time with each other. In socialism everything is equal, so if the economy is bad then everyone gets affected by it, but with capitalism not everyone gets affected. Before the Mr. Newman got laid off they had a decent income. They spent time with each other and they got along just fine.…

    • 1047 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Many are under the impression that socialism means that everything will be freely given to those who don’t work or earn enough money because they are lazy, on drugs, etc. However our country has socialist programs that benefit those in needs, examples are Obamacare, Veterans Association, Social Security, Public Housing, Welfare and Education. For example, there so many in this country that say they want to help and it’s our country’s responsibility to help veterans. Yet, every day they pass so many homeless people and they turn their noses up at them, and some of those homeless are the very veterans that they want to help and…

    • 2222 Words
    • 9 Pages
    Improved Essays
  • Great Essays

    Why not Socialism Socialism in theory sounds very appealing however, in practice it’s a disaster. Gerald Cohen a pronounced philosopher talks about how socialism could be good for people. Although, his arguments are weak and unclear on why socialism is better. It brings up the question on how can socialism be better than capitalism, and why his argument isn’t convincing. In his book, Why not Socialism he talks about the pros about having a socialist system.…

    • 1054 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The aspect of Socialism has been implemented in the societal countries of Venezuela, where it failed miserably in an attempt to stabilize the country and ended up placing the people in terror a supreme state of fear, and also in Brazil, where it caused a demographic of oppression in terms of poor treatment. Whereas the concept of Communism has been…

    • 841 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    An easy way of looking at it, communism is a more extreme form, of socialism. As socialism involves those in the community giving up some of their wealth to be distributed to level out the social class, while communism requires that everyone give up their individual property and everyone receive the same as everyone else to satisfy their needs. Another key difference between the two involves the projected fall of capitalism. According to the Communist Manifesto, Marx believed that the fall of capitalism would occur by a revolution from the middle-class (or bourgeoisie) after the exploitation they faced at the hands of the upper-class. Rather than believing in this violent demise of capitalism, socialist (as previously discussed) believe more in trying to narrowing the gap built between to social classes, instead of terminating them…

    • 1428 Words
    • 6 Pages
    Improved Essays
  • Decent Essays

    Socialism is the idea of a social organization that supports production, distribution, and trade should be controlled within the community itself. The social part of it means that everyone pays for all of the production. In socialized healthcare, everyone pays into the system and those who need care get it without extra charge. The same goes for roads, energy, or any other infrastructure project - we all pay the same and have access to the same benefits. The problem such a system runs into, however, is that there is often not enough money to go around, and because things are free, people get greedy and abuse the system.…

    • 134 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    This is also important for other competitors in this process. In a socialist system, people don’t need to compete for their development because everything belongs to the community; instead of this they compete for political power, which causes much instability in socialist countries. This harms the development of the countries, and it also helps explain why many capitalist countries are secure, such as the United States and Canada. On the other hand, socialism may be viewed as superior to capitalism because it seeks for social justice and promotes education. Socialism, a general term for the political and economic theory, advocates a system of collective or government ownership and management of the means of production and distribution of goods.…

    • 916 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Although the leaders of the Bolshevik revolution aimed to create a communist society in the USSR based on Marxism, however due to several reasons, the society (and state) they formed was different from the one envisioned by Marx. Marxism, in essence, is Karl Marx’s political ideology whereas communism is a society (and a political system) based on that ideology. The research paper explores this thesis by a comparative analysis of Marxist doctrines and its application as carried out by Lenin and his successors in the ‘Socialist’ USSR. In the above context, central questions that would be addressed would revolve around whether the communists were able to establish a classless society in the Soviet Union? Was the formation of a communist society…

    • 2903 Words
    • 12 Pages
    Great Essays
  • Great Essays

    The ideas of certain political and economic systems can be very different. Some societies are very left wing, which is very government heavy and and focus on building a community that has very strong ethics and creating equality for all of the people, whatever religion or gender, and right wing society, which focuses on being self-reliant and supporting free trade. The differing systems of Socialism, Communism and Capitalism, two very left wing systems and Capitalism being a right wing society are very different and all produce different results. However, the role each system has played in the history of the world has shaped the way that countries run today. Socialism, a political system aimed the goal of common ownership for all.…

    • 1463 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Pros and Cons Between Capitalist and Socialist Economy Courtney N. Harris Everest University Abstract In this is essay I will explain my personal opinions on the benefits and downfalls of living in a Capitalist economy as opposed to living in a socialist economy. Julie Marshall and her cousin Jean-Paul have been communicating back and forth through e-mail discussing the benefits of her moving to the U.S. Jean-Paul is currently living in Belgium, which is a Socialist Economy. Julie Marshall on the other hand resides in the U. S., which is a Capitalist Economy.…

    • 599 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Socialism is a capitalist base with a communist control, meaning that individuals may own a company, but the government has more control over the regulations that the business has to follow to provide a more even distribution of goods and wealth to everyone. This extreme government control is good because everyone gets a piece of the luxuries, but it is bad because it starts to eliminate people’s drive to become more successful. The increased regulation may also make it more difficult for smaller family-owned businesses to thrive. This government control causes people to not want to strive as hard to do anything because they are being handed everything, opposite of what drives a capitalistic economy. This is also stated in Michael Howard’s article Basic income, liberal neutrality, socialism, and work, “More appropriate for socialism is distribution . . . .…

    • 897 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    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.…

    • 1367 Words
    • 6 Pages
    Great Essays