The Pros And Cons Of Socialism

Improved Essays
There are many varying definitions for socialism and capitalism, and many changes in each through the course of human events. Socialism today is seen as a synonym for communism while capitalism is seen as either evil or the only viable option available to us. In actuality, most existing governments use characteristics of both. Socialism and capitalism each have their pros and cons, as well as complex histories and ideals or goals to achieve.
History of Socialism
To start, socialism is simply defined as a social and economic system in which there is common ownership of all means of productions, and in turn an equal distribution of the goods and services produced. Socialism has been around since at least as early as the nineteenth century, but
…show more content…
There are also many advantages as well as disadvantages to consider when forming an opinion. A main pro is equality, although certain people may still disagree that equality is important. Nonetheless, socialism works towards achieving social, political, and economic equivalence among all people. The idea is for everybody to be held to the same exact standards and to receive the same amount of money and opportunity, disregarding race, sex, class, gender, or otherwise. It is hugely debated that this could either allow the economy to flourish immensely or to stop economic growth at all and the economy would remain stagnant or possibly even …show more content…
A huge debate though, is whether it is a good idea or not. As with socialism, there are many pros and cons. Supporting arguments for capitalism include efficiency, freedom, and financial growth. Capitalism is efficient because in a free market, the suppliers will be pressured to reduce waste and cut production costs for profit. This leads to innovation of workers and economic growth which then increases the final gross domestic product (GDP) and the standard of living for everyone. The main idea of capitalism is that there is a freedom of the consumers and suppliers; you can buy and sell what you want, which many people see as a benefit of the concept. A final advantage is the fact that there are simply no better alternatives. “As Winston Churchill said, ‘It has been said that democracy is the worst form of government except all the others that have been tried.’ A similar statement could apply to capitalism”

Related Documents

  • Improved Essays

    The benefits of capitalism are that individuals choose what to consume leading to more competition and better products and services. Goods and services produced based on demand create incentives to cut cost and avoid waste. In addition, capitalism leads to economic growth and expansion. However, capitalism can also be non-beneficial because it offers a chance to a monopoly power, inequality leading to social division and recession and unemployment. The benefits of socialism would be the absence of monopolistic practices, greater economic efficiency, higher social welfare, and absence of business fluctuations.…

    • 823 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    A way to get the pros of both ideologies and less cons of both is to have them coincide. By combining capitalism and socialism, the pros combine to become even better and the cons cancel each other out. For example, businesses can be owned by people and the government and they can compete together. This reduces monopoly power and also decreases the amount of control the government has in certain areas. Another example is the opportunity for free health care and education for all classes, rich and poor.…

    • 1363 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    There are several economic theories that have been studied and put into practice since reforms occurring after the Industrial revolutions. Two of the most popular and most discussed economic theories are capitalism and socialism. While these two are highly discussed, which of the two is more beneficial to society? Socialism is superior to capitalism because capitalism creates vast inequalities between wealth as well as in status, while socialism benefits the community as a whole by sharing wealth and property rights. The first reason why socialism benefits society more than capitalism is because of the intense wealth inequalities that occur in capitalistic societies.…

    • 812 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Is capitalism better than communism? Some people think capitalism is better than communism because it rewards hard work and promotes economy. Others think that communism is a better government system because everyone always have food and money. After reading and examining the facts it is evident that capitalism is better than communism. With capitalism it allows people to strive because they can have trade and personal items and business.…

    • 669 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Pros And Cons Of Communism

    • 1086 Words
    • 5 Pages

    If you look at a world map today, you will see an overwhelming majority of countries implementing capitalist ideals and many of them have become very successful. However, very few still apply communist ideals, in contrast to the many countries who tried such forms of government in the 20th century. It is my belief that although communism may not be a bad idea all together, it is still a flawed system that cannot work, and a free market system is better. One reason Communism does not work is because it is human nature to be better or worse than someone else. The basis of Communism is that all people are equal in a society and should have equal food, work and housing.…

    • 1086 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The more money that is made will result in more money being spent, which in return would boost the economy. Although this theory has a chance of backfiring, there should be no doubt that the minimum wage for full time workers be increased. Democratic socialism attempts to hold onto a slowly diminishing middle class and believes that no man nor woman should live in poverty, especially during these times of economic…

    • 726 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    As we have discussed there are several negative affects about capitalism, but is socialism better? In Hoffman and Graham’s book “Socialism” we find that socialist tend to have a utopian view of society (216). Which in theory sounds appealing, but in practice it fails to play out. The idea that one can create a perfectly equal society sounds interesting, but realistically impossible. Socialism tends to aim on making everyone equal giving them equal respect.…

    • 1037 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    Capitalism: The Quest for Cost Reduction and a Fair Price Capitalism is the idea that wealth can be grown. Under a capitalistic society, wealth is grown from the private sector where land is privately owned. Production in a capitalistic society is efficient due to the rewards of being efficient. If a producer can make more goods for cheaper than he currently is then the producer can make more money. Capitalism arose out of specific conditions during the feudal era in England and was widely put to use in various countries during the Industrial Revolution.…

    • 1653 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    One can argue that from Smith’s point of view, individuality exists in the way a person can make money; everyone has their own ideas and everyone can and will use those ideas to make money. It is the idea of expressing or employing certain strategies in a way that profits any one person the most but ultimately benefiting society as a whole and directly branches to competition. “Competition forces them to improve the way they are organized and make a better use of the resources available” (Netivist). This is how people would express their individuality by creating new methods of trade and production that in turn advances our society. Equally the same people who agree with Smith and the idea of Capitalism would completely be against Communism, saying how it destroys individuality if everybody would be apart of the same class.…

    • 1008 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    By reinvesting capital, the overall capital of the nation will grow and therefore increasing the wages of the workers. This increases the wealth of a nation as a whole because a society cannot be deemed as successful and happy if laborers are poor. Through the division of labor, productivity increases; therefore, laborers are richer and happier. Division of labor can yield efficiency, and efficiency allows people to produce at a higher rate. What this implies is that Capitalism drives people to produce more and compete because if one individual is making more than another, that individual would have the intention to surpass the other because it is in human nature to work for self-interest.…

    • 852 Words
    • 4 Pages
    Improved Essays

Related Topics