Essay on The Efficiency of Economic Systems

Essay on The Efficiency of Economic Systems

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Conformation or competition? Over the years, the differences between capitalism and socialism have led to contradictions in several countries on how to run the country economically, socially, and politically. Between these two economic systems, people usually debate about the role of the government and economic equality. Although, capitalism and socialism have similar characteristics, the differences between capitalism and socialism make capitalism a better way of life.
Most importantly, both socialism and capitalism have established effective ways to run economies. In capitalism, private owners control the country’s trade and industries and own their property unlike socialism where the community as whole owns the means of production and distribution. A market-based economy such as capitalism produces goods and services for profits then private owners reinvest this profit into the economy in a way. In socialism, because the public owns enterprises, they make production plans for the markets and the economy. According to capitalists, capitalism has “generated great wealth, creating billionaire elites as well as a huge middle class” (1) and also accounts for the most people brought out of poverty. Socialists argue that capitalism leads to poverty. Socialism reduces poverty because it employs everyone even if the work requires the most insignificant skill. Capitalism increases industrialization allowing owners to increase production which then creates a high demand in labor. The increase of employment allows for more people to rise out of poverty as well. Supply and demand causes individuals to raise production depending on the quantity people buy and sell. On the other hand, socialism’s public ownership causes production to stay ...

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...ncourages conformation in people: capitalism clearly provides people with better life choice.
Even though, both economic systems work to have good standards for the people, capitalism benefits everyone more. Either economic systems could work under the right economic, political, and social guidance. Although, society lets everyone know that no economic system, no matter how good it may seem, can truly work under political corruption or the corruption of society itself. Overall, capitalism and socialism may have similarities but the differences make capitalism the better alternative for everyone.

Works Cited

"Capitalism." Current Issues: Macmillan Social Science Library. Detroit: Gale, 2010. Opposing Viewpoints in Context. Web. 4 Feb. 2014.

"Socialism." Opposing Viewpoints Online Collection. Detroit: Gale, 2010. Opposing Viewpoints in Context. Web. 4 Feb. 2014.

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