Capitalism And Socialism Essay

CapitalismAndSocialism

Dotwowrongsactuallymakearight?Inthecaseofcreatingaperfecteconomy,thatistrue.Pure capitalismandsocialismbothhavemanyflaws,butwhentheymixtogetheryouhaveanalmost perfecteconomicsystemInapurecapitalistsociety,therewouldbenoceilingandnofloor98%on thecitizensareinthemiddlebutthethe1%'sare100timesmorerichthantherestor100times morepoor.Ifyouaredisabledorold,thegovernmentwouldnothelpyoumorethansomeone havingeverythinggoingtheirway.Apuresocialistsocietyistheexactopposite.Everyonewould getthesameluxuries,necessities,andmoneygiven.Evenifonemanworks12hoursadayandthe otherworks12hoursaweek,theywillbetreatedwiththesamerespectshowmorecontent Inthecaseofmakingaperfecteconomy,twowrongsdomakearight.CapitalismandSocialismare likepeanutandjelly,theyaregoodbuthaveflawsbythemselvesbutareperfecttogether.Ethan RitzJrisabusinessman,hemakesveryriskdecisionthateithermakehimrichorpoorHeonly doesthisbecausehelivesinasocietywithamixedeconomy.Heknowsthegovernmentwon'tstop himfrombecomingabillionairebutalsoknowsthattheywillprovidehimwithsocialsecurityifhe becomespoor.FurthermorehisfatherEthanRitzSr.hassocialsecurityhelphimstayina financiallybalancedplace.DavidBernsteinisanoldman,heretired10yearsagoandis75years oldHeisverygratefultoliveinamixedeconomybecausehehassocialsecurityhelphimstay financiallystable.David'sgrandson,Bob,alsoloveslivinginamixedeconomybecausehedoesn't havetaxawayallhismoney.Boblovestheideaofcapitalism,butwantssocialismwaysinhis economybecausehisgrandfathercannotworkanymore.

Capitalismandsocialismbythemselvesmaynotbecapableofhavingasuccessfulsociety,but whenputtogethertheycreateanalmostperfecteconomy.Puresocialistandcapitalistsocietiesare bothdoomedtofailbutamixedwhichismostlycapitalistandhassomesocialistaspectsmeshed intoitisperfectMyargumentisvalidbecauseallcountriesshoulddecidetobecomemixedinstead ofdealingwiththeflawsofpureeconomies.Capitalismandsocialismhavetheirprosandcons,but amixedeconomyeliminatestheconsofpureeconomiesandkeepsthe

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WhyIsCapitalismBetterThanSocialism

Capitalismisthebesteconomicsystemforanycountrybecauseitallowsindividualstomaketheir ownbusinessdecisions,andbeself–motivated,itconfinestheauthorityownedbythegovernment. Capitalistcountriesaremoretechnologicallyadvancedandbettereducatedascomparedtosocialist countries.Capitalismisdifferentfromsocialisminmanyrespects.

First,capitalismisthebestwaytoruntheeconomybecausethecapitaliststhinkthosewhohavethe bestandmostcreativeideas,judgmentsandopinions,plans,havetherightto"berewardedwith profits,andthosethatlackthemotivationorresources"willnotbeabletokeepupwithThe competitionThosewhowishtosucceedandputeffortwilldobetterthanthosewhodonot Capitalismallowsindividualstomaketheirowndecisionsandtoearnwagesonthebasisofthe quantityandqualityoftheworkputuponadailybasis,whichsupportsthestatementthatoneofthe mainideasofcapitalismis"privatepropertyandtheacquisitionofshowmorecontent

Itisimpossiblenottonoticethatsomeofthemostinfluentialcountriesintheworldhavecapitalist economiesandthroughthistheythriveandprosperCapitalismisaneconomicsystembetter becauseitallowsindividualstomaketheirowndecisions,anddoagoodjobbecausetheyareself–motivated,itlimitsthepowerthatthegovernmenthas,anditwillhelpthecountrybecomemore technologicallyadvancedandbettereducated.Throughallofthesethingsthatbecomesuccessful countryintradeandbusiness,whichleadstomoremoney,scientificandmedicaldiscoveriesand more,andgenerallyimprovethequalityoflivingforitspeopleIfoneworkshardenough,youcan beanythingyouwanttobeanddoanythingyouwanttodo.Therearenobarrierspreventing progressandapersonalonetobecomewhatyouwantto

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ThreedifferenttypesofeconomicsystemsusedbygovernmentsareCommunism,Capitalism,and Socialism.Eachtypeofsystemisuniqueindifferentways.Eachhasdistinctaspectsthatmakeit whatitis.Incommunism,thegovernmentrunseverythingandtherearenosocialclasses.The governmentincapitalismdoesn'tinterferewithanybusinessesandletsthecitizensownandoperate themSocialismisbasicallyamixtureofthetwoeconomicsystemsThegovernmentrunscertain businesses,butcitizensruntherest.Thethreeeconomicsystemsaredifferentinthewaytheyrun thingsandregulatethings.CommunismisaneconomicsystemdevelopedbyKarlMarx. Communism,alsocalledMarxism,isaneconomicsystemusedbyshowmorecontent

Itistheeconomicsystemusedbyagovernmentthatregulatesonlycertainbusinessesforthe welfareofthecitizens.Thegovernmentnormallyonlyregulateshousing,education,food,and medicalissues.Sincethatisallthegovernmentregulates,privatecitizensareallowedtoown businesses.However,theincomeofthesebusinessesiscontrolledthrutaxes.Thestrengthof socialismisthatthegovernmenthasmorecontroloverbusinessesandcanregulatewhathappensin them.Theweaknessisthatpeopleinterestedinowningabusinessintheareaofhousing,education, food,ormedicalissuescannot.Allthethreeeconomicsystemsaredifferentinuniqueways.The mosteffectiveoutofthethreeeconomicsystemsiscapitalism.Itisthemosteffectiveforafew reasons.First,peopleareallowedtoownanytypeofbusinesstheywant.Insocialismtheycan'town avarietyofbusinessesbecausethegovernmentrunsthemIncommunism,noonecanowna businessbecausethegovernmentownseverything.Ifpeopleareallowedtoownanytypeof businessthattheywantandkeeptheprofitsofthebusiness,theywillwanttoworkharderthenthey wouldundercommunismorsocialismInaddition,justbecausethegovernmentdoesn'tinterfere withbusinessesalotdoesn'tmeanthatthebusinessesaren'tstrong.Thegovernmentstilldoes interferealittle,regulatingwhatthebusinessescanandcannotsell.Lastly,capitalismisthemost

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Capitalism,SocialismAndCommunism

Capitalism,SocialismandCommunismaredifferentandthemostpopularpolitical–economic systemsinourworld.Eachsystemhasitsspecificsconcernsandwaystomanagertheeconomicof thecountry.NowadaysCapitalismisthemostpopularpolitical–economicsystemintheworld, bringingthepopulationmorefreedomtomakedecisionsregardingtofinancialmarketandprofit. Capitalismiscommonlydefinedasaneconomicsysteminwhichthemeansofproductionand distributionareprivatelyownedandlookingforaprofit.Everysingledecisionbasedonsupply, demand,price,distributionandinvestmentsarenotmadebythegovernment,itisquitetheopposite, thedecisionsaremadebytheownersofthebusinessesandalltheprofitmadethroughthecompany arefocusedontheownerswhoinvestinthecompanyandthewagesarepaidtotheemployeesof thecompany.SocialismwasidealizedbyKarlMarxandEngelsandisfocusedonatotally egalitariansociety,showmorecontent

DifferentlytoSocialism,Communismseekstoestablishanegalitariansocietythroughtheabolition ofprivateproperty,socialclassesandeventheStateitselfAccordingtothissystem,themeansof productions(factories,farms,mines...)wouldstoptobeprivateandwouldbecomepublic.Even though,SocialismandCommunismareseenassynonymous,therearesomedifferencesbetween them.ForMarx,Socialismisasteptowardscommunism.Onedifferencebetweenthemisthatinthe Socialistsystem,theStatecontrolinovercontrolofthesociallife,whichmakethesociety,which putsthesocietyatthemercyofthestateCommunism,ontheotherhand,couldbedefinedasa stageaftersocialism,whenthereisalreadyastrongequalitybetweenthesocietywhichmeansthe statecouldbestopped,stoppingthesociallifecontrolandthesocietycouldfindwaystoself–regulate

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CapitalismVsSocialism

Duringtheturnofthetwentiethcentury,theworldwassweptwithconflictingideologies,withmany strivingtoestablishwhattheybelievedastheimpeccablemethodofeconomicadministration.In 1917,anideologyintheKingdomofRussia,henceforthknownasSocialism,grappledthenation's populaceasapopularmethodofgarneringthemoutofpoverty(Ball).AcrosstheWesternworld, however,Capitalismanditsfree–market–basedthinkingtookrootinmanyforms,opposingthevery idealsofitsopposite;itwouldbedestinedtoclashwithitsEasterncounterpart.Capitalismand Socialismdifferintermsofoperation,butbothstrivetobolsterthevalueofman.Tobegin,the overalladministrationofbusinessesvariestremendously,especiallyshowmorecontent Intermsofbusinessadministration,Socialismstrivesforgovernmentintervention,attemptingto achieveadegreeoffairness;however,Capitalismstrivesfora"hands–off"approach,letting businessesdecidetheircourseaccordingtomarkettrends.Ofcourse,thereisalsoawell–defined correlationbetweentheoversightsoverthetwoideologies,forSocialismhasusuallybeenrelatively authoritarian,tryingtostrikeabalanceforthegeneralpopulation;Capitalism,however,hasusually beenlaxontheregulationofliberties,lettingonedecideforthemselvestheirownfate.Finally, incentivehasheldaprofoundrole,suchaspersonalownership.Socialism,withthemaintenetof equalitybeingstrivedfor,hasusuallyfrowneduponunequalownership.Nevertheless,Capitalism believesinjustcompensationtoone'sworkethic.Differentapproacheswithacommongoalheavily distinguishthese

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Introduction

Socialismandcapitalismaretwoconceptsthatareusedbygovernmentsinrespectivecountries regardinghowtheeconomiesoperate.Thetwoconceptsarebasedonpolitical,economicandsocial systems.TheUnitedStatesofAmericaisanexampleofacapitalistcountrywhileSwedenisa socialistnationApartfromthesimilarityinwhichthegovernmentplaysaroleintheeffectiveness ofthetwosystems,thereisnodiscriminationinbothsystemsregardingrace,colororotherarbitrary classification.Therearenotabledifferencesbetweenthetwosystemsbasedonownershipstructure, equity,andemployment

Ownershipstructure

Theownershipstructuresincapitalismandsocialismaresimilarinthatbotheconomicsystems placeshowmorecontent

TopicSentence:Socialismandcapitalismaretwoconceptsthatareusedbygovernmentsin respectivecountriesregardinghowtheeconomiesoperate

II.Thesisstatement:Therearenotabledifferencesbetweenthetwosystemsbasedonownership structure,equity,andemployment.

III.OwnershipStructure:

a.Ownershipstructureissimilarbecausebothsystemsrelyonproperty,people,orgoodsforvalue andthegovernmentplaysarole

b.Inacapitalisteconomy,properties,land,capital,andbusinessesareownedandcontrolledby individuals(Pigou,2002).

cInsocialism,individualsshouldnothaveownershipofland,capital,orindustrybutratherthe wholecommunitycollectivelyownsandcontrolsproperty,goods,andproduction(Cohen,2008).

IV.Equity:

a.Incapitalismandsocialism,equityisimportantinbotheconomicsystems.Moreover,inboth systems,theowneroremployeereceivesomeformofequity.

bEquityisnotaconcernundercapitalism,andtheargumentisthatinequalityisthedrivingforce thatencouragesinnovation.

c.Insocialism,equalityisasignificantconcern,anditisemphasizedinwhichthereisthe redistributionofwealthandresourcesfromtherichtothe

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Whatarethedifferencesbetweencapitalismandsocialism?SomeAmericansbelievethat CapitalismistheAmericanwayoflife.However,therearecertainfailurestothesystemwhichhas createdoursocialclassesasweknowthemtodayasthepoorclass,middleclass,andupperclass. Whydopeoplebelievesocialismisamethodofcontrol?Whobelievesthatcapitalismorsocialism worksandwhy?Also,therearemanyissueswithracialdiscrimination,socialandmediacontrol, lackofeducation,andlastbutnotleastexclusionarylawsfortheupperclasscitizensespecially ownersofbilliondollarcompanies.Doesyourvoteactuallycountasavote?Arethedebatesfor Presidentialelectionsriggedanyway?Whatcreatesdivision,andwhyisthisnecessarytomaintaina capitalisticstate?Inaddition,whatleadingeventsledtoourconstitutionandamendmentsandhow aretheybeingabandonedtodayinourcapitalistnation?Whyaretheretrilliondollarbailoutsto milliondollarcompaniesandnottothegeneralpublic?

Thedefinitionofcapitalismbasedonthewebsterdictionaryisthat,"capitalismshowmore content...

AmericanGreetingsandWalmartareguiltyofthisjusttonameacouple.Oneparticularcompany receivedabout$1,500,000forthelossofanemployee'sdeath."Capitalism:ALoveStory" continuesontoinformthattherewasalsoasecondlifeinsurancepolicyonthesamemanwhich totalstheiremployee'sdeathforthemtoprofitabout$5,000,000,000Howcanacompanycreatean insurancepolicyandallowthecompanytheyworkfortobecomethebeneficiary?Howcanthe familynotbeallowedtovisittheirdyinglovedonewhiletheyareinthehospital?Theansweris

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Youbuyahouse.Youchooseyourjob.Youshopforthegroceriesandtoysthatyourincomeallows you.WetakethesebasicsofAmericanlifeforgranted,buttheselibertiesareallbecauseof capitalism.Capitalismisaneconomicsystemthatenablesconsumerstodeterminewhichproducts willbesold,letsfirmsdecidehowtoproducethem,andallowsmarketstoguidewhogetsthem.IN theUnitedStates,oilisanexampleofanindustrythatisrunbythisprincipleLifewouldbe different,however,ifthenationwassocialist.Socialismisaneconomictheorythatmandatesthat thegoverningbody,ratherthantheconsumersandfirms,controlsomeofthefirmsonbehalfofthe communityForexample,inNorwayandevenincapitalistMexicoshowmorecontent

Inaddition,capitalismaddressesthequestionsofwhatproductstoproduce,howtheywillbe produced,andwhowillreceivetheproducts.Firmswillmakethegoodsandservicesthatconsumers arewillingandabletobuy;therefore,consumersdeterminetheproducts.Thisisaneffective method,becauseingeneralpeoplearerational;peoplerespondtoincentives;andoptimaldecisions aremadeatthemargin(Hubbard,2009)Inturn,firmsdecidehowthegoodsandservicesare produced.Entrepreneurshipallowsforcommonpeopletooperatebusinesses.Anindividualcan produceanidea,takethefinancialrisk,andbeginabusinessandstartsellingagoodorservice.A person'sdrivetosucceedandnaturalresponsetoincentivesencouragehimorhertowork. Businessesareguidedbyprofits.Becausenaturalmonopoliesdooccur,amanagedcapitalistic economylikeourownprovidesforappropriateregulatorymethods,butgenerallythegoodsare producedbyafirmorfirmswithminimalgovernmentinterference.Pricesfortheproductsareset throughcompetitionoffirms,byprivateenterprise,inwhichthemarketdeterminestheprice.Who, then,determineswhogetsthefinalproduct?Thegovernment?Incapitalism,marketsdeterminewho willreceivethegoods.AdamSmithdevelopedthisconceptbynamingitthe"invisiblehand"–the guidingforcesofself–interest,supplyanddemand,andcompetitiontoassistingthemarketplace alongonitsownwithout

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ACapitalistEconomyvsSocialistEconomy

Thereareavarietyofeconomicsystemstoday,whichcaninfluencehowprosperouswewillbeas individualsorasagroup.Socialismisaneconomicsystemwherethegovernmentwillbegreatly involvedintheeconomyInasocialisteconomythegovernmentcancontrolmanyindustries, providepublicinstitutionssuchashealthcareandeducation,andequalizeincomesofthe population.Asocialisteconomyisoneoflowunemploymentandstability,wherethegovernment setsproductionquotasandpriceregulationupontheirperceptionoftheneedsoftheeconomyOn theotherhand,acapitalisticeconomyisaneconomicsystemwherethereisaverylimitedamount ofgovernmentinvolvement.showmorecontent

Also,insocialeconomiesgovernmentssetpriceregulations,thereforereducingthetotalprofiton products.Theeffectofcontroloftheeconomylimitsthedirectioninwhichtheeconomywillgrow.

Secondly,therestrictionsbythegovernmentinasocialeconomycauseslowgrowth.Sincethe incomesofthepopulationaredistributedequally,peoplelosethepersonalinitiativetobetter themselvesbecauseotherswillbegainingthebenefitsiftheyworkhardthemselves.Thisconceptof betteringoneselfthenhelpingsocietydoesn'texist,butbetteringsocietythenhelpingoneselfdoes exist

Forexample,inafactorynoonewouldtakeanadministrationtitleiftheyweregettingthesame salaryassomeonewhowasinvolvedinlabour,resultinginthehigherdemandforadministrators, butnoperkstoretrievethemSincethegovernmentequalizesthepopulation'sincomepeoplespend lessontechnologythereforedepressingtheproductionofnewtechnology.Furthermore,when socialistgovernmentsrestricttheproductionintheeconomy,roomforablackmarketisformedin ordertoprovideavarietyofproductsfromothercountries.Themoneyspentintheblackmarkets isn'tputtowardsthenationaleconomy,thuscontractingconsumerisminthenationaleconomy, whichinturnslowsdowntheeconomyOverall,therestrictionsofasocial

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ComparisonsbetweencountriesandregionsbeforeandaftertheadventofcapitalisminEastern Europe,RussiaandCentralEuropeaswellasacomparisonofCubaandtheex–communist countriesprovideuswithanadequatebasistodrawsomedefinitiveconclusions.Fifteenyearsof "transitiontocapitalism"ismorethanadequatetimetojudgetheperformanceandimpactof capitalistpoliticians,privatizations,freemarketpoliciesandotherrestorationmeasuresonthe economy,societyandgeneralwelfareofthepopulation.

EconomicPerformance:Growth,EmploymentandPoverty

Undercommunismtheeconomicdecisionsandpropertywerenationalandpubliclyowned.Overthe past15yearsofthetransitiontocapitalismalmostallbasicshowmorecontent

Moreovereconomicinequalitieshavegrowngeometricallywith1%ofthetopincomebracket controlling80%ofprivateassetsandmorethan50%ofincomewhilepovertylevelsexceed50%or evenhigher.IntheformerUSSR,especiallysouth–centralAsianrepublicslikeArmenia,Georgia, andUzbekistan,livingstandardshavefallenby80%,almostonefourthofthepopulationhasout–migratedorbecomedestituteandindustries,publictreasuriesandenergysourceshavebeen pillaged.Thescientific,healthandeducationalsystemshavebeenallbutdestroyed.InArmenia,the numberofscientificresearchersdeclinedfrom20,000in1990to5,000in1995,andcontinuesona downwardslide(NationalGeographic,March2004).FrombeingacenterofSoviethigh technology,Armeniatodayisacountryrunbycriminalgangsinwhichmostpeoplelivewithout centralheatandelectricity

InRussiathepillagewasevenworseandtheeconomicdeclinewasifanythingmoresevere.Bythe mid1990's,over50%ofthepopulation(andevenmoreoutsideofMoscowandSt.Peterburg–formerlyLeningrad)livedinpoverty,homelessnessincreasedanduniversalcomprehensivehealth andeducationservicescollapsedNeverinpeace–timemodernhistoryhasacountryfallenso quicklyandprofoundlyasisthecaseofcapitalistRussia.Theeconomywas"privatized"–thatis,it wastakenoverbyRussiangangstersledbytheeightbillionaireoligarchswhoshippedover$200 billiondollarsoutof

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CapitalismvsSocialism

Outline:

Essayquestion:Whatisthebestpolicyforanycountry:capitalismorsocialism?

Introduction:

Thesisstatement:Itismuchbettertoliveinthecountrywherethegapbetweenpoorandrichpeople issharplynoticeable,thantoknowthatapersonwillneverdifferfromthemassofpeopleorfeela realfreedominhis/herowncountry.

Body:

A.Capitalisticpolicygivesanequalopportunitytoeveryonetobecomeawealthyperson.*Person canhavehisownbusinessanddevelopitinthefuture.*ThenationbecomesrichB.Market economyisthebaseofcapitalism.*Foreigninvestments*Businesscycle.C.Advantagesof capitalistmodeshowedbyAdamSmithDSocialismlostitspopularityinshowmorecontent Thus,entrepreneursatisfiesthedemandandmakesprofits.Ofcourse,thereisnothingeternaland everythingwillloseitsimportance,butthemechanismofcapitalismisgreat.(Thehistoryof capitalism:fromfeudalismtoWallAtreet,Beattie,2011).

Tojustifycapitalism,suchagreatpersonasAdamSmithrepresentedfivemainadvantagesof capitalism:

1.Withlittleinterferencebythegovernment,problemslikecorruption,lackofincentivesandpoor informationdonotarise.Weendupwiththeseproblemsonlywhengovernmentsattempttocontrol theeconomyThisisoneofthemainbenefitsofcapitalism2Costeffectiveallocationofresources beingthe'invisiblehandofthemarket',capitalismensuresthatresourcesaredistributedaccordingto consumerchoice.Nofirmisrewardedforproducinggoodsthatpeopledon'tdesire.

3.SuccessfulProduction.Oneoftheadvantagesofcapitalismisthatasfirmshaveincentivestobe efficientinproduction,inamarketsystem,cuttingcosts,improvingcompetitivenessand productivityaretheirtoppriorityTheywillgooutofbusinessiftheirefficiencyandproductivity fails.

4.DynamicEfficiency.Firmsinacapitalistsystemneedtorespondtothefluxinconsumer preferencesandrespondaccordingtothenewconsumertrendsThisimprovesandmaintainstheir efficiencyovertime.5.

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"Somethingiswrongwithcapitalism...Theremustbeabetterdistributionofwealth,andmaybe AmericamustmovetowardDemocraticSocialism"–MartinLutherKingJr.

Canasocietywithbothbillionairesandin–workpovertyreallybeconsidered'successful?'

Doyoueverfeellikeyouareunderpaidatwork?Isittoochallengingtoevenfindajob?Doyou disapproveofthegreatdividebetweentherichandthepoor?Doyoucareaboutprotectingthelives ofwomenandracialminorities?Doyoucareaboutprotectingtheenvironmentforfuture generations?ThesearetheissuesthatSocialistscareaboutmostdeeply.Comejoinusaswefight forliberty!

Itisafactthatourcurrentsocietyisbuiltuponprofit.Socialistsarguethatthisprofitcomesfromthe produceoftheworkersForexample,ifaworkerbuildsatableoutofwood,thevalueofthetableis equivalenttothelaborthattheworkerputsin,plusthelabornecessarytogettherefinedpiecesof woodtotheworker.Thistheory,dubbed...showmorecontent...

Essentially,Socialistswishtoconstructasocietyinwhichtheprofitmotiveisgone,andinwhich societyasawholedemocraticallyplanstheeconomy.Moneywillbereplacedwithlaborvouchers, bossesbyworkers'councils,andshopswithcommunalstoreswhereinproceedsoflaborare exchangedforvouchers.Thetraditionalprofit–drivencapitalist'firm',alongwithclasssociety,will beentirelyvanquished.Socialistsunderstandthatrevolutionisnecessarytoputtheworking enterprisesintothehandsoftheworkersonamassscale

WesuggestthatyoujointhePartyforSocialismandLiberation(http://www.pslweb.org/about),as theyarecurrentlythemostpopularSocialistpartyintheUnitedStates.ThePrinciplesof CommunismbyFriedrichEngelsisaslightlylengthierintroductiontoSocialism,andKarlMarxby VladimirLeninisanothergoodintroductoryreadingforaspiring

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TheIndustrialRevolutionbroughtaboutgreatchangesinhowgoodswereproducedandconsumed, butitalsobroughtaboutsocialandpoliticalchanges.Somewerepositive,suchasmachines relievingmuchofthetoilpreviouslyplacedonworker'smusclesButtherewerealsonegative changes.

Asworkersmovedtocitiestoworkinfactories,andprogressinmedicalandsanitationpractices improved,urbancrowdingbecameahugeissueAdditionally,whereindustrywastakingover productioninmarketsthathadpreviouslybeendominatedbysmallbusinessowners,theseskilled workers,weaversandthelike,werenowbeingforcedtotakejobsworkingforcapitalistventures––oftenworkingintheindustrycoincidingwiththeirmasterskill,butshowmorecontent

Thoseindefenceofcapitalismsaythatitforcesproducerstodevelopneworimprovedproductsand todevelopwaysofworkingmoreefficientlyOntheotherhand,thoseagainstcapitalismstatethatit causeseconomicinequality,exploitationoftheworkingclassandcausesoverallsocialdisruption.

Theriseofcapitalismwasadrivingforceinthedevelopmentofcommunism.Thedisparityof wealth,overcrowdingofurbancenters,underminingofskilledworkersandtheappallinglivingand workingconditionsoftheworkingclasshaveleadtowarsandaformingofasocialistorcommunist point–of–view

Socialismistheunderlyingmotivationbehindcommunistmovementsinhistory.Socialistsbelieve thatitisunjustforasmallamountofpeopletoownthebiggestportionofthewealthinsociety.This idealeadtotheconceptofacommunistsociety,inwhichtheexistenceofprivatepropertyis eliminatedinfavorofgovernment–ownedpropertybeingsharedamongallit'speople.The governmentwouldprovidejobsandcareforallpeopleequally.Theideawasthatthrough communism,therewouldbenosocialclasses,thuseliminatingalienationforanyofthepeoplein thesociety.

Incomparison,capitalismandcommunismarelikenightandday––oppositeofeachotherinevery way,butthemaindifferencesinthetwocanbeseeninthedistributionofwealthamongasociety's peoplesandtheappearance

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EconomicSystems:SocialismandCapitalismEssay

IhaveobservedthatwhenAmericansdiscusstherelativemeritsofsocialismvs.capitalism,the chiefdebatesthatcomeupare

Whatwouldhappenifweremovethestimulusforinnovationandproductivitythatafreemarket generates?Thisimplieshavingafreemarketincludingindividualownershipandcontrol,andto varyingdegreesalaissez–fairegovernment

Woulditbepossibletohaveathrivingsocietyinwhichwewouldnothave20%ofthepopulation livinginpovertyandwithoutadequatehealthcare,housingoreconomicsecurity?

Fundamentally,wecharacterizeanddifferentiatecapitalismfromsocialismbythewaytheyhandle production(industry),distribution,andexchange(trade)ofwealthandgoods.Incapitalism, capitalshowmorecontent

Itwasalsoatthistimethatmonopolizationbecamewidespread.Eventually,incorporatedentities becameabletoperformmanyoftheactionsofindividualssuchasbeingablebuyandsellproperty, holdpatents,sueandbesued,etc(Peavler)

Thephilosophy,suchasproposedbyAdamSmith,cametobethataneconomyhasanaturaldesign. Lefttoitsowndevices––andremovedfrompolitics,religionandallotherpursuits––itwill regulateitselfaslongasnoonethrowsaspokeinthewheelandeveryonebenefits.The government'sonlyrealroleincapitalismbecametomaintainpeaceandordersotheeconomycan workwithoutinterruption(Newman)

Initspurestsense,asocialisteconomycommunallycontrolstheproduction,distributionand exchangeofresources.Thiscommunitycontrolisimplementedbythestatethroughacentral governmentactingonbehalfofthecitizensTherootsofsocialismlieinThomasMoore'sideaofa utopiansociety.Duringthe18thand19thcenturiestheindustrialrevolutionandconcomitant urbanization,resultedinincreasingconcentrationofwealthandpower(Hoyt).

Manyfearedthatthefreedomtoengageincapitalmercantilismhadthenaturalconsequenceof

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ComparingCommunism,Socialism,AndCapitalism

Communism,Socialism,andCapitalismareallalikeanddifferentinmanyways.Socialismisthe economicsystemofCommunism,whereasCapitalismistheeconomicsystemofademocracy. SocialismandCommunismarealikeinthatbotharesystemsofproductionforusebasedonpublic ownershipofthemeansofproductionandcentralizedplanning.Socialismisasystemcontrolledby thegovernmentthatensuresaspreadingofthewealthamongallpeopleOntheotherhand, Communismisaformofgovernmentwhereallpropertyispubliclyownedandeachpersonworks andispaidaccordingtotheirabilitiesandneeds.Incontrast,Capitalisminvolveslessgovernment controlandallowsafreemarketeconomybasedonhardworkandentrepreneurshipBoth

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CapitalismVs.Socialism

ThedebatebetweenSocialismandCapitalismisonethatisveryhotthesedays.PresidentObama justspentthelasteightyearstakingtheUnitedStatescloserandclosertoSocialism,whilePresident Trumpisdoingeverythinginhispowertoreversethistrendandmovethecountrybacktoamore Capitalisticsociety.EventhoughImaynotagreewithallofPresidentTrump'sdecisionsortheway heconductshimself,Iamverypleasedwiththedirectionheistakingourcountry,because, Socialismissimplynotalong–termreplacementforCapitalism.IdonotbelievethatpureSocialism willworkforacouplereasons.Onereasonisthatsocialism,aswellasCommunism,arebothbased ontheideathatthegovernmentisinchargeofdistributingshowmorecontent

ItisnotpossibletogiveapercentageoftheworldthatiseitherSocialistorCommunistbecause mostcountriesareacombinationoftwoorthreeofthesesystems.Itis,however,safetosaythat thereisroomforittospreadandaslongastherearepoliticiansofferingfreestuff,therewillbe socialism.ThebiggestthreattoSocialismisCapitalism.

ThereisnoperfecteconomicsystemTheyallhaveflawsbecausetheyaremadeupofpeople GreeceandVenezuelaareexamplesofwhereSocialismdidnotsucceed,whereasChinaandCuba areconsideredbysomeasasuccess.Ontheotherhand,theUnitedStatesofAmericahasbeen aroundandcontinuedtogrowtoover200yearsasapredominantlyCapitalistic

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CapitalismVs.Socialism

Capitalismvs.SocialismCapitalismandSocialismhaveveryaroundalongtimesincetheIndustrial Revolutionandsomeoftheircharacteristicsstillcontinuetobeinusetodayinmanycountries aroundtheworld.CapitalismwasmainlyusedinnineteenthcenturyEnglandandcreated widespreadpovertyandmanypeopledisagreedwiththewayCapitalismworked.Theythoughtit createdanunfairbalancebetweentherichandthepoorandoverallmadeawidespreadclass struggleagainstpoverty.Socialismroseupasaneconomictheorybecauseofalltheproblemsthat Capitalismwashaving.Itwasbasedonthefactthatmanypeoplewantedtodiminishtheseparation betweentherichandpoorandmakethemequal

Capitalismwastheeconomicsystembasedonmoneyandinwhichpropertyandthemeansof production(likefactories)wereownedbybusinessesandseparatepeople.Thissystemfunctions whenpeoplefollowtheirownselfinterestandbeliefssoprogresswillresult.Thegovernment doesn'tinterfereintheeconomybecausetherulesofthemarket–placebenefiteveryoneThisshow morecontent...

Insocialismtheythinkthatthegovernmentshouldownallpropertyandallofthemeansof production.Thegovernmentalsoshouldbeactingtoprotectworkerssinceemployersoftentake advantageofthem.Thissystemalsoworkssothatallgoodswillbedistributedaccordingtoeach person'sindividualneedsItalsoworksbyprogressresultswhenproducersofgoodscooperatefor thebenefitofallwithoutanycompetitionatall.Intheearly19thcenturysocialistsbelievedthatthe spiritofcooperationcouldreplacethemarket–placecompetitionofcapitalismbutlate19thcentury socialistslikeKarlMarxbelievedcooperationwasn'tpossibleandtheconflictbetweentheowners ofcapitalandthosewhoworkedforthemwas

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CapitalismAndSocialismAndCapitalism

Formorethanacenturycapitalismandsocialismhavebeencontendingtobethebesteconomic system.Socialismisapoliticalandeconomictheoryofsocialorganizationthatadvocatesthatthe meansofproduction,distribution,andexchangeshouldbeownedorregulatedbythecommunityas awhole.Capitalismisaneconomicandpoliticalsysteminwhichacountry'stradeandindustrythat iscontrolledbyprivateownersforprofitCapitalismistheheartandsoulofAmerica'seconomyA capitalisteconomycantakeapersonfromragstorichesorfromrichestoragsdependingonthe paththatistakenbyone'sfreewill.ThisconcepthasmademanyAmericancitizenswonderifthe capitalistpaththepathworthtakingTherehavebeenradicalsthroughoutthehistoryoftheUS whowerenotsatisfiedbythecapitalistsystemaswellasitsideals.Oneofthoseradicals,Huey Long,aDemocraticpopulistwhowasasenatorofLouisianafrom1932–1935,gaveaspeech entitled"ShareOurWealth"onFebruary23,1934.Thespeechsupportedtheidealsofsocialismby suggestingequaldistributionofwealththroughoutthenation.Socialismmayhaveitsperksbut capitalismisthebestpathtotakesincecapitalismprovidessocietywithmorebenefitsthrough economiccompetition,prosperity,andamoralsystemthatpromotesselfinterest.AfterWorldWarI endedonNovember11,1918,Americancapitalismstartedtochange,especiallywhencapitalismhit aneconomicclimaxduring

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CapitalismVs.SocialismAndSocialism

CapitalismvsSocialismCapitalismandsocialismhavebeentwoschoolofthoughtsineconomics thathaveopposingfactors,andtherehavebeenalotofcriticismsandcomparisononwhich economyisbetterintermsofeconomicequality,andtherolethatthegovernmentplaysinthe society.Inmostsituations,asocietywithabettereconomicopportunitiesandchoices,withmore technologicaladvancementandprivateownedbusinesseswouldbeabetteroptiontoasocietythat iscollectivelyowned,andoperatedbyallmembersofasociety.Whilethesocialistbelievethat economicinequalityisinappropriateforasociety,andthegovernmentplayingtheroleofproviding "freeeducation,subsidizedhealthcarefortheelderly,andhighertaxesontherich",thecapitalist believethegovernment;asocialisteconomylackstheeffectiveuseofeconomicresources,therefore providingasystemofgovernmentthatprovidesindividualrights,objectivelaws,andafreemarket economywouldbemoreefficient.Inacapitalisteconomy,anindividualisallowedtoowna property,andhavethefreedomtoorganizeandoperateforprofitpurpose;emphasisonindividual profitratherthanonworkersorthesocietyasawhole,thereforeencouragingfirmstobemore efficientandinnovatenewproductsthatacknowledgestheinterestofthepeoplewithoutthe interferencebythegovernmentoranyregulationnecessarytoprotectpublicinterest,andatthe sametime,keepingthenational

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Socialism

Socialismistheeconomictheoryorsystem,inwhichthecommunityownsthemeansofproduction, distribution,andexchangecollectively,usuallythroughthestate.Itischaracterizedbyproduction foruseratherthanprofit,byequalityofindividualwealth,bytheabsenceofcompetitiveeconomic activity,and,usually,bygovernmentdeterminationofinvestment,pricesandproductionlevels.Itis collectivebecausesocietycancontrolproductionunlikecapitalismandbecauseproductionisforthe commongoodratherthanforindividualprofitAtthesametimeitisindividualbecauseworkersare nolongeralargealienatedgroupofpeopleemployedbyaminorityofowners.Workbecomesafree andself–affirmingactivityshowmorecontent

Anargumentagainstsocialismisbecauseofthislackofaprofitmotivethesocietycannotadvance. Assumingthisstatementistrue…itreallyisthepointofsocialism.Socialism'spurposeisnot tohaveanoverabundanceorsurplusofgoodsItiswhenasurplusoccurswhensocialclassesare moredefined.Undersocialismalackofprofitmotivewouldensureeveryoneisgettingexactlywhat heorsheneeds.Nowletusexamineifalackofaprofitmotiveisbad.Letustakeasteelworker underacapitaliststate.Testeelworkerreceiveszeroprofitfromtheworkheputsout.Theprofithe worksforgoesdirectlytotheowneroftheplant,mill,ormine.Why,then,doestheworkerwork?If profitisnothisincentive,whatis?Mostpeople,incapitalistsociety,workbecausetheyhavetoIf theydidn'twork,theycouldn'teat.It'sthatsimple.Theywork,notforprofits,butforwages,in ordertoobtainfood,clothing,andshelter.Therewouldbethesameimpulsetoworkunder socialism—peoplewouldworkinordertoearnalivingthusdisprovingalackofadvancement theory…yetanotherreasonwhytheworkingclasswouldsupportsocialism.Socialismoffers additionalincentivestoworkwhichcapitalismcannotoffer.Undercapitalismtheresultofanyextra effortisnotpublicbenefitbutprivateprofit.Undersocialism,however,theappealtoworkhardand wellisbasedonthegroundsthatitissocietyasa

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