A Capitalist Economy vs Socialist Economy Essay

A Capitalist Economy vs Socialist Economy Essay

Length: 851 words (2.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

A Capitalist Economy vs Socialist Economy

There are a variety of economic systems today, which can influence how
prosperous we will be as individuals or as a group. Socialism is an
economic system where the government will be greatly involved in the
economy. In a socialist economy the government can control many
industries, provide public institutions such as health care and
education, and equalize incomes of the population. A socialist
economy is one of low unemployment and stability, where the government
sets production quotas and price regulation upon their perception of
the needs of the economy. On the other hand, a capitalistic economy
is an economic system where there is a very limited amount of
government involvement. The capitalistic economy is based on the
demand of consumers and the supply of producers.

There is a great advantage of living in a nation where there is a low
amount of government intervention in the economy, because government
intervention reduces the freedom of markets, causes a slow growing
economy, and exploits the consumers in the economy.

Firstly, high government intervention reduces the freedom of the
markets. When the government controls an economy, the population is
taxed in order to fund national programs. Taxing the consumers of the
economy will reduce the personal spending, therefore causing the
economy to grow in areas of public service such as education and
health care instead of technology and fashion. Furthermore, the
industries in a social economy are directed by quotas, which is
production targets set by the government. The quotas don’t often
represent the need in the economy, therefore causing a surplus or a
deficit of products, which leads to small profits....


... middle of paper ...


...ions placed on
industries in a social economy will affect the price, variety, and
quality of products produced in their economy.

In conclusion, there is a great advantage of living in a nation where
there is a low amount of government intervention in the economy,
because government intervention reduces the freedom of markets, causes
a slow growing economy, and exploits the consumers in the economy.
Capitalism provides a marketplace where industries compete in order
attract more consumers, therefore providing more efficient,
qualitative and plenty of variety for consumers. This efficiency,
quality, and variety will help the economy grow in whatever way it
wants to, making capitalism the most flexible economic systems. The
nature of human beings is, one is satisfied, when he/she has provided
the necessities for himself first, then the people around him.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Contrasts between the Socialist and Capitalist Russian Economy Essays

- A long term study of the international market reveals that the Russian financial system is unique due to its many economic changes throughout its historic existence. It is well documented that up and until 1990, Russia operated as a socialist economy. In contrast, during contemporary times it is conducted as a capitalist economy. During its socialistic era, there was a constant battle between the poor and those who privately owned their lands, fields, factories, corporations, and various other enterprises, As such there was a great disparage found in Russia’s economy....   [tags: Economics ]

Better Essays
1077 words (3.1 pages)

Capitalism And Socialism : A Capitalist Economy Essays

- All for one or one for all. That is the question that’s really being asked when comparing capitalism and socialism. In a capitalist economy, such as America, the money earned by an individual is for said individual and belongs to them. However, in a socialist economy, such as Italy, the money earned by a person is for the country and is redistributed among the people equally. One major difference is the role that the government plays in each economy. Capitalism and Socialism are practically opposites and the way their governments work are pretty much opposite of each other as well....   [tags: Socialism, Capitalism, Communism, Marxism]

Better Essays
2416 words (6.9 pages)

Essay on Contrasting The Socialist and Capitalist Russian Economies

- A long-term study of the international market reveals that the Russian financial system is unique, due to its many economic changes throughout its historic existence. It is well documented that up and until 1990, Russia operated as a socialist economy. In contrast, during contemporary times it is conducted as a capitalist economy following the leadership of President Vladimir Putin. All through its socialistic era, there was a constant battle between the poor and those who privately owned their lands, fields, factories, corporations, and various other enterprises....   [tags: Econmomics]

Better Essays
1527 words (4.4 pages)

The Growth Of A Capitalist Economy Essay

- “In particular, not only are rates of IPV expected to be higher in a capitalist economy than a socialist one, but rates of IPV, are also expected to be higher during periods of economic downturn and recession than during periods of relative prosperity” (Hattery and Smith 211). Relationships that undergo financial hardships through economic slumps are likely to create problems because doubts are raised towards the ability of the man to provide for his relationship, which trigger outbursts because men see that as an attack on their manhood....   [tags: Abuse, Domestic violence, Wage, Violence]

Better Essays
1447 words (4.1 pages)

Capitalism And Socialism : A Capitalist Society Essay

- Within a capitalist society, the economy runs through private companies owned by individuals. Decisions over the use of production are made by the owner of said company. Citizens and corporations are free to decide how they spend their money. They are able to reserve it, donate it to charity, or buy products, services or property. This freedom of wealth is caused the free market. The free market is all those things that money can purchase, and the persons can act freely related to whether they want to buy it or what they will buy....   [tags: Capitalism, Socialism, Market economy, Communism]

Better Essays
1320 words (3.8 pages)

The Main Factors Of A Successful Socialist System Essay

- The duty of the market is to ensure there is a constant flow of various resources to the consumers. The various forces should thus ensure the market is functioning to serve the needs of the different people in the society (Denis, 2015). There should be conformity in the various operations of the market to ensure the stability of the economy. The economic activities of the nation will determine the strength of the nations and the ability to compete with other organization in the market. The market thus has to be adequately attractive to attract the various investors (Jabłecki & Machaj, 2008)....   [tags: Socialism, Capitalism, Planned economy]

Better Essays
2249 words (6.4 pages)

Essay on The United States As A Capitalist System

- The United States is often assumed as a capitalist system by many individuals around the world, but actually it is a mixed economy. Some may ask, ‘Does the United States economy satisfy these conditions’. The U.S. monetary framework has a high level of private possession and individual opportunity; however, a huge part of the economy is controlled by the government itself. Truth be told, current assessments demonstrate that Federal government spending represents up to 33% of our economy. In a majority of the country’s history, this hasn’t always been true....   [tags: Capitalism, Karl Marx, Socialism]

Better Essays
1246 words (3.6 pages)

Essay about The Emergence of Capitalist Economy In Russia

- The Emergence of Capitalist Economy In Russia I. Introduction: A Newfound Freedom Imagine you are a high school student just about to graduate. You are about to leave your parents, who have directed your actions for your entire life. However, you have never had to make your own decisions, and are having trouble handling your new situation. Now imagine that on a larger scale. An entire nation released from the control of its "parents" with no idea how to use its newfound freedom. The Russian Federation is only a shell of its former glory as the U.S.S.R....   [tags: essays papers]

Free Essays
4940 words (14.1 pages)

Essay on Capitalist System

- From the French Revolution (1789) to Modern Times, various significant theories created by philosophers, scholars, social scientists, politicians, and economists. Rousseau to Kant, Adam Smith to John Stuart Mill, Proudhon to Comte, Marx to Bernstein, Ricardo to Mazzini, many approaches considered as milestones introduced to the environment’s of different studies. However, during the timeline which consists four (18th, 19th, 20th, 21st) centuries, societies evolved significantly while the fundamental assumptions of earlier communities are replaced....   [tags: Karl Marx, Ricardo, capitalism, economy, Smith]

Better Essays
1179 words (3.4 pages)

Essay on Lessons of the Socialist Planned Soviet Economy

- Lessons of the Socialist Planned Soviet Economy A long time ago the chancellor of Germany, Bismarck, said the following after reading the “Communist Manifesto” by Marx and Engels, “This is very interesting. But now we have to find a country that we wouldn’t pity to do an experiment on”. Russia was to be the country that this experiment would take place in. The main part of the experiment consisted of running a Socialist planned economy which is defined as the state of economy, where all production sections are governed and owned by government institutions....   [tags: essays papers]

Free Essays
1137 words (3.2 pages)