Pros And Cons Of Capitalism In The Economy

Capitalism for The Better, Socialism for The Worse

Failing or profitable government? There are various types of economies in the the world, of the various types they can be narrowed down to the two most common which are capitalist and socialist economies. Capitalism is “a way of organizing an economy so that the things that are used to make and transport products are owned by individual people and companies rather than by the government” (Merriam Webster). Socialism is “a way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies” (Merriam Webster). Every economic systems has pros and cons. Type of organization, individual or public benefit, and societal wealth are factors that distinguish between the two types of economy.

Capitalism can be a very advantageous form of economy. “Capitalism is triumphant around the world and raising a lot of questions from people who believe in the superiority of Capitalism over Socialism” (Taber, George M. 1998). Capitalism is the type of organization in which resources are privately owned, it involves increasing wealth and developing personal success. In a capitalist economy, everyone has an opportunity to wealth. Individuals have the chance to acquire wealth in various forms by owning private property like land, goods, and businesses. Individuals owning private property brings a sense of responsibility and gives people the chance to provide for themselves and establish a better future. A capitalist economy encourages people to aim for success, business owners treat and pay their employees very well in order to attract good workers for the promotion and more success of their businesses.

Although, there are fo...

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...but under operation of the government. Socialism does not promote competition because everything is government owned, therefore there is no room for production of better products and services, and no room for innovation and increasing wealth.

Socialism and capitalism have more differences than similarities, which each difference has it’s own benefit to the economy. While capitalism is more rich get richer poor get poorer, socialism distributes wealth evenly to those both those that work and do not work to acquire wealth. Socialism is said to eliminate poverty among the society, and capitalism eliminates poverty among the few individuals that invest in private property. Capitalism promotes responsibility and a chance for individuals to establish a better future, and socialism promotes corruption among the bureaucrats in the government in charge of these industries.