Socialism In North Korea Essay

analytical Essay
1622 words
1622 words

Just how bad are pure socialist economies? North Korea is the most well known socialist nation. The government came to control all economic decisions in the country. Most of the country’s resources were sent to the military. The country also used its resources on developing a nuclear program. The military growth used up all of the country’s necessary resources. In the late 90s and early 2000s, the majority of the country was suffering from hunger and malnutrition because food was scarce. Millions ended up dead, and those who survived only did because of the aid from other countries (like South Korea and other capitalist countries). The failure to provide food foe the country was due to their flawed economy. North Korea began to produce less …show more content…

In this essay, the author

  • Explains that north korea's government controlled all economic decisions and used its resources to develop a nuclear program. the failure to provide food was due to their flawed economy.
  • Explains that capitalism is crucial to a successful government and nation because it brings growth, efficiency, and freedom.
  • Explains that economic efficiency is the ideal use of scarce resources, which prevents waste and ensures the lowest cost for a product.
  • Explains that while socialists think equality and security are important in an economy, they are not providing the economy with the most important goals: growth, efficiency, and freedom.
  • Opines that capitalism is better than socialism because it does not promote growth, efficiency, and freedom.
  • Argues that capitalism provides freedom, efficiency, and growth. it is the only answer to a successful economy because it allows people to control their own life.

The free markets eventually were the reason for why the country was able to revive the failing economy. What is socialism and capitalism exactly? Socialism is “a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, and labor, in the community as a whole”(1). Whereas capitalism is “an economic system in which investment and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations…”(1). The only way to provide a suitable way of living and a “fair” economy is by having a capitalist economy. While some argue that pure socialism is the best economic system, the truth is that pure capitalism is the better economic system to live by, because economic freedom, efficiency, and growth make life more suitable for …show more content…

If an individual wants to open a dental practice out of their tool shed in their backyard, they can. Economic freedom allows people to literally have freedom. Capitalism answers the three economic questions (who produces, what is produced, and for whom) by creating a product market based on what consumers want. By illuminating small businesses, the larger ones can be more successful at answering and fulfilling these questions. Economic freedom also ensures that government interference will not occur. Freedom also gives workers the freedom to change jobs. An employer cannot contract in an employee and cannot blackmail said employee for quitting. The worker has the right to switch jobs to better their life. The next key economic goal is economic efficiency. Economic efficiency is the ideal use of all scarce resources. This prevents waste and helps ensure the lowest cost possible for a product. Efficiency allows employers to fire employees who are old, sick, or anyone who slows down the production. The employers are able to fire employees without any repercussions such as workers’ protection laws. Employers are also allowed to hire child workers. When an

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