Capitalism vs. Socialism - Essay Example

Capitalism vs. Socialism Capitalism and socialism are two of the prominent economic schools of thoughts prevailing in the world at present. Both are entirely different in principles. The debate of which is best is still going on. Even after decades of introduction, still economists and politicians have different views about capitalism and socialism. This is because of the fact that both capitalism and socialism have advantages and disadvantages. None of them is perfect. However, when we analyze the recent developments happened in the world, we may forced to align more towards capitalism. Communism, the extreme form of socialism is exhausting from the world whereas capitalism is slowly gaining more grounds. Communism and socialistic principles were disappeared in former Soviet Union and Easter European countries. China is one country in which communism is still prominent. However, even in communist China, the administration forced to dilute the communist and socialistic principles. China is currently doing everything possible to attract private capital as it realized that it is difficult for them to develop properly under the tight communist or socialistic principles. I strongly believe that capitalist economy is the best after analyzing the recent developments in the world. This paper argues in favor of capitalist economy for the future development of world. Capitalism increases competition whereas socialism discourages competition. Every country needs domestic food production for its own national security and independence. Domestic food production can be increased only with the help of competition. In nom-competing economies or in socialist countries, the absence of competition makes people lazy. The resources in this world are fixed whereas the population size is increasing. It is difficult for the increasing population to find better living standards if they adhere to a particular level of productivity. Socialism on the other hand does not believe much in competition. It works on certain impractical principles which may appear good at a glance. In other words, socialistic principles look good on paper alone, practically it is difficult to implement these principles and achieve the objectives. The idea of a Marxist society is very alluring. In today's world of freedom and fairness, the notion of everyone being completely equal, even if this means taking from the rich and giving to the poor, seems just; however, the defect in Marxism is obvious. It is dependent on a type of human nature that is hard to come by (Socialism vs Capitalism). None of the socialistic world or communist countries succeeded in achieving the objectives of socialism which is the major reason why communism wiped off from Europe and on the verge of destruction in other parts of the world as well. Not only China, even Cuba has recently announced lot of economic reformation policies which were earlier black listed by these countries as the bi-products of capitalist economy. Cuba has already announced that the communist government is going to stay away from the employment sector and it is estimated that at least a million people may lose their public sector jobs as a result of the reformation process. Capitalism utilizes the willpower of individuals, especially entrepreneurs, to foment economic activity. Capitalism is based on the assumption that individuals operate based on self interest; however, by doing so they not only help themselves, but also propel others towards economic success (Socialism vs Capitalism). One of the major criticisms against capitalism is that it makes two types of citizen in a country; rich and poor. However, it should be noted that even after years of implementation of socialistic principles, countries like China, Cuba and Soviet Union failed to reduce the gap between the rich and poor in their territory. On the other hand, it should be noted that capitalist countries like America and Britain not only remain wealthy, but also succeeded in reducing the gap between the rich and the poor. The living standards of the poor people in these countries are better than the living standards of the poor people in the socialistic countries. It should be noted that some of the richest people like Bill Gates and Warren Buffet are currently donating major share of their earnings for charity works. In other words, their hard work and earnings are going to be useful to the poor people. In short, capitalism not only increases the living standards of rich people, it can also positively affect the life of the poor people. According to Winston Churchill; Socialism is inseparably interwoven with totalitarianism and the object worship of the state. It will prescribe for every one where they are to work, what they are to work at, where they may go and what they may say. Socialism is an attack on the right to breathe freely. No socialist system can be established without a political police (Criticisms of Communism and Capitalism) Socialism cannot survive in a democratic world. It limits the freedom of thoughts and freedom of expression rights. It can never allow the public to breathe the air of freedom. A totalitarian administration is necessary for the implementation of socialistic principles. In a civilized world like ours, it is difficult to live in a society in which people treated like slaves. Most of the people value their freedom more than anything else. They don’t want to put their freedom in jeopardy while searching for a world where socialism prevails. Under socialism a ruling class of intellectuals, bureaucrats and social planners decide what people want or what is good for society and then use the coercive power of the State to regulate, tax, and redistribute the wealth of those who work for a living. In other words, socialism is a form of legalized theft (Thompson) In short, the power remains in the hands of dome privileged people in a socialistic economy even though they proclaim equality in political and social life. It should be noted that in communist countries like Cuba, the power remains in the hands of Castro and his family members even after many decades. Even though Castro has resigned from president ship recently, his brother assumer power after his resignation. People have no authority in deciding who should lead them. It is difficult to live or survive in such a country. To conclude, capitalism seems to be the morally right school of economic thoughts at present after analyzing the plus points and minus points of capitalism and socialism. Works Cited 1. “Criticisms of Communism and Capitalism”. Web. 30 April 2011. 2. “Socialism vs Capitalism”. Web. 30 April 2011. 3. Thompson, Bradley C. “Socialism vs. Capitalism:Which is the Moral System”. 1993. Web. 30 April 2011. Read More