Socialism vs. Capitalism
Dongyu Lin
Writing and Grammar L5
Kimberly Brady
October 2, 2016
Socialism vs. Capitalism
As we both know that everything has two sides such as a coin, one of the aspects is good, and other is bad. Just the same as socialism and capitalism. They are somewhat conflicting thoughts in politics and economy. These two economic systems which are adopted by or prevalent in different nations of the world. The primary difference between socialism and capitalism is the scope of government economic intervention.
It is well-known to us that many countries are capitalist, such as United States of America and Germany. So, what exactly does capitalism means? To figure out this question, let's learn the history of capitalism …show more content…
First of all, socialism is a system which evolved from 1800 AD in France (Surbhi, 2015). Then, socialism defines as an economic system in which the resources are managed and owned by the states. What is more, the fundamental principle of socialism is equality. There is equal opportunity for everyone, which means that everyone has the same right to reap the fruits.
Consequently, socialism promotes fairness and equality among society. Therefore, in socialism, the wealth is shared by all. However, the government in socialist economy decided the rates of every product and owned the resources. Under this system, everything that important is controlled by the government. The good thing is, there is no such gap between the poor and the wealthy due to the equal distribution of income. The bad thing is, the competition in companies is negligible because the government controls the market. So, people are the lack of motivation to earn money, and which leads to shortages of production.
On the whole, it is very hard to distinguish which system is better than the other. Although capitalism leads to the development of economy and creation of wealth with efficient production, increase the length of the gap of the poor to the wealthy. Whereas socialism seems is ineffective for the rapid development of the economy, but it fills the gap to make everything is available to
Dongyu Lin
Writing and Grammar L5
Kimberly Brady
October 2, 2016
Socialism vs. Capitalism
As we both know that everything has two sides such as a coin, one of the aspects is good, and other is bad. Just the same as socialism and capitalism. They are somewhat conflicting thoughts in politics and economy. These two economic systems which are adopted by or prevalent in different nations of the world. The primary difference between socialism and capitalism is the scope of government economic intervention.
It is well-known to us that many countries are capitalist, such as United States of America and Germany. So, what exactly does capitalism means? To figure out this question, let's learn the history of capitalism …show more content…
First of all, socialism is a system which evolved from 1800 AD in France (Surbhi, 2015). Then, socialism defines as an economic system in which the resources are managed and owned by the states. What is more, the fundamental principle of socialism is equality. There is equal opportunity for everyone, which means that everyone has the same right to reap the fruits.
Consequently, socialism promotes fairness and equality among society. Therefore, in socialism, the wealth is shared by all. However, the government in socialist economy decided the rates of every product and owned the resources. Under this system, everything that important is controlled by the government. The good thing is, there is no such gap between the poor and the wealthy due to the equal distribution of income. The bad thing is, the competition in companies is negligible because the government controls the market. So, people are the lack of motivation to earn money, and which leads to shortages of production.
On the whole, it is very hard to distinguish which system is better than the other. Although capitalism leads to the development of economy and creation of wealth with efficient production, increase the length of the gap of the poor to the wealthy. Whereas socialism seems is ineffective for the rapid development of the economy, but it fills the gap to make everything is available to