Comparison Of Capitalism And Socialism

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