Comparison Of Capitalism And Socialism

Good Essays
Around the world today there are different kinds of economic models, two of them being capitalism and socialism. Capitalism can be seen in places such as Singapore and Hong Kong and socialism can be seen in places such as Venezuela and Bolivia. These economic models can be seen as ones that are on opposite sides of the spectrum from each other. They each have their own stand on government control, private property, and regulations and numerous other topics. Therefore, capitalism and socialism are two vastly different economic models creating components in each that are positive and negative.

Capitalism has its benefits and downfalls as an economic model. What distinguishes capitalism from any other economic model is the lack of any government
…show more content…
A significant difference from capitalism is, socialism has a great deal of involvement from the government in its economic system. The positive of that being that with the government involvement is the stability that comes along with the government in business. The government owns many of the factories, which is also another benefit for the consumers, because unlike the predictability of the market the government is less likely to crash. The downfall of this being that it does not allow for much private property for citizens; therefore, it limits the options for business to mainly what the government owns. Leonard Reed was an economist against socialism because he believed “the absence of governmental or any other coercive master-minding—then one will possess an absolutely essential ingredient for freedom: a faith in free people” as said in his piece I, Pencil. The negative aspect of socialism that Reed is addressing is the hindrance of individual’s freedoms. On the other hand, a positive aspect of socialism is the equality it creates for the people in the society. Overall my thoughts on socialism are, that this economic system will not flourish as well as a capitalistic due to the regulations imposed on by the government but it will have greater stability because a majority of the economic power is in the government. As a whole, socialism can be viewed positively or negatively due to its different …show more content…
While they may seem to be polar opposites with no similarities, they do in fact have similarities, for instance, fluctuation occurs in both with their quantity and price of products. But they differ in exactly who is in charge, for capitalism it is the market but for socialism it is the government. Nonetheless, a majority between these two models is very different. The beauty of them both is that each us functional in certain countries around the world. Through their positives and negatives these economic models still stand

Related Documents

  • Decent 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
    Decent Essays
  • Decent Essays

    Karl Marx Vs Adam Smith

    • 1879 Words
    • 8 Pages

    He explains, ‘accumulation of wealth at one pole is, therefore, at the same time accumulation of misery, agony of toil, slavery, ignorance, brutality, mental degradation, at the opposite pole’ (History of Socialism, Laidler 1968 p.152). Another flaw in capitalism is its chaotic nature. Capitalism is seen as chaotic and unpredictable as it is controlled through a free market and government cannot control every aspect of the economy. Due to this, Marx makes the argument that socialism is a better system as every aspect of the economy is controlled by the government and therefore little to no crises will occur. He mentions on numerous occasions that capitalism is prone to destroy itself and the working class will revolt and over through the capitalist which will be followed by a new socialist economic system.…

    • 1879 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Whilst communism and capitalism are the economic systems in one point, the main difference is the control of production instruments; whether to have collective ownership or private property. In capitalism, owning the instruments of production is free, but it is also very difficult to maintain this ownership because of the constraints to generate revenue in the perfect competition. Whereas production instruments are shared equally in the communist system, so each individual has the right to use common goods and services. Of course, it is not clear the level of sharing equally. Briefly, communism calls for an economic order of sharing the ownership.…

    • 1380 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    This main contrast sets a myriad of opposite postures that have a socio-economic and political impact. For example, the capitalist system base individual prosperity on free market with a small government and the opposite, considers government controlled industries as a mean to social prosperity. While in capitalism companies are owned by the private sector; in socialism the government owns the companies. Individual freedom to property, competition and assets management contrasted by elimination of private property and government welfare programs that provide same social benefits. Capitalism can cause huge distance between the classes which can result in social uneasiness, while Socialism systems attempts to assure social equality.…

    • 1058 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Private property is the defining characteristic of capitalism. Marxism and Liberalism are significantly different political ideologies. For this reason, it is a surprising to discover, when comparing and contrasting these philosophies, Marx and Mill are able to agree on certain facets of private property. Both philosophies believe that private ownership of production and property creates an unstable but expanding economy. Simply put, they agree that private property creates a class who achieves concentrated wealth, and a working class that is burden with struggles.…

    • 928 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Marx And Engels Analysis

    • 1310 Words
    • 5 Pages

    A capitalist system, particularly a contemporary capitalist system, has far more levels than proposed here. Not everyone who benefits from the commodification of labour has this vast wealth, not all labourers are disfigured cretins living in hovels. It is perhaps though unfair to criticise Marx and Engels for generalising when speaking of such a huge and complex subject as the socio-economic system of Western society. Rather than trying to comprehend capitalism as a whole, it is useful to look at a working example of it, and to apply Marx and Engels’ theory of political economics to this example in order to view its merits and demerits for instance the Apple iPhone. In terms of its economic worth, within six months of last year, Apple sold over 135 million iPhones, it has become a staple of present day society, its use-value elevating passed that of an accessory and moving towards becoming an essential tool.…

    • 1310 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Both Marx and Weber have contributed an important insight into the understanding of society and classical sociology. Their work can be compared similarly, with both theorists recognizing the exploitative nature of capitalism and a definition that equates to the rational process of accumulation of wealth for reinvestment. However, it is difficult to ignore the striking differences between the two; this is hardly surprising due to Marx’s economic approach whereas Weber takes a more sociological and cultural approach. However, it is crucial to not divide these theorists using clear-cut borders of the economic versus cultural approach or likewise, the macro structure-shaping society vs the micro action theory approach. What should be recognized, is that both theorists attempt to understand the connections between modern capitalism and specific historical circumstances.…

    • 826 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The speaker of the source would also be opposed to socialist values interfering with the economy and private property by taxing the rich to provide for the poor, in addition to providing any sort of social program to help those who can’t help themselves. Unrestrained capitalism, as the source advocates, should not be embraced by society. In fact, the economy should have enough government intervention that while wide-spread success is achieved, independence and innovation are not sacrificed in the process. This idea can be supported through many examples and case studies. Three ideas , however, accurately sum up the benefits of having intervention in the economy: some closure of the gap between societal income classes, innovation is still accomplished, and, most of all, the people who participate in a government regulated system will experience a widespread area of prosperity in not only the economy, but in their everyday lives as…

    • 1659 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    On the contrary, he thinks that those who fall into the lower class should not be rewarded by the government through means of welfare programs. In his opinion, the act of taking money from the government without earning it is simply irresponsible. He thinks that when the government intervenes with economy in such a manner that they are simply encouraging poor behaviour. Browne’s opinions are similar to those displayed in Adam Smith’s book “Wealth of Nations”. Smith had a strong opinion that individuals should be free to work solely for themselves, and those who neglect to do so shouldn’t be rewarded for their lack of self interest.…

    • 1243 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Perhaps this is because by limiting ideology have remained in the class struggle and in destructive criticism of capitalism without having implemented an alternative that would not lock communist economies and the Socialists themselves as denial a system of capitalist world market. In the next chapter brings to discussion the dynamics that occur in international political economy and will be presented shortly. For a society to be efficient, as socialist economies have discovered, relevant economic "laws" cannot be left aside entirely. The fact that socialism has no economic tendency to expand internationally can be seen as a weakness in the modern globalized world. In a Communist economy, investment and consumption are primarily determined by the national plan and even more, the state has a monopoly on all foreign exchange, which creates at times clumsy or inefficient economic…

    • 2007 Words
    • 9 Pages
    Decent Essays