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Capitolism vs. Socialism - Research Paper Example

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At its most basic level, socialism would promote the viewpoint that economic inequality is harmful to society, such that the government should do everything in its power to set policies that equalizes all members of the citizenry. This is most commonly done through various government programs and subsidies designed to help marginalized groups. Capitalists, however, believe that private enterprises are far more beneficial to the overall health of the economy than government policies. They promote a free enterprise system where individual citizens are largely able to earn their own way in the world, within certain legal boundaries, without strict interference from the government. This is the basis for this paper and forms the basis for an informed discussion. The two forms of governments and economies will be briefly compared, followed by an analysis of six personal interviews. All of this is done in an attempt o solve the problem of which system is preferable for society today. Definition of the Problem It is difficult to make the claim that there is one best world system of economics. Through the ages, however, certain types of governments have failed society at various times and under certain situations. Two of the more common types of governments existent in the world today are capitalism and socialism. ...
Capitalism Reviewed At its core, capitalism involves the private production of various enterprises for the express purpose of earning a profit. As opposed to focusing on the collective well-being society, each member of society under capitalism is afforded the opportunity to earn as much or as little money as the market (and their work ethic) dictates. As far as a governmental system is concerned, capitalism employs more of a Laissez-fair methodology in that government intervention is only evident in certain instances (Bjornskov and Paldam 469). Society, by and large, is left to produce the goods and services that are most beneficial for everyone. The government does not decide who to allocate resources or profit to, as this should be left up to the marketplace to decide in most every situation. This does not mean that the government does not provide services to society, particularly to those in need, but in terms of economic gain, people are left to create their own wealth. The capitalistic, or free enterprise system, is predicated on the importance of economic activity. The more wealth that an individual accumulates, the more goods and services they will demand. This system necessitates the continual reinvesting of profits in order to drive the economy and keep it growing in a positive direction (Bjornskov and Paldam 471). Private companies are minimally regulated by the government in order to encourage such growth and expansion. Under capitalism, the people largely determine what is produced for consumption and the services that are provided to the people. This can take place via the free market, a regulated market, and or can be the result of a combination of private ...Show more
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Summary

April Scicluna Dr. Elisha Gray SOC 100, Section #91955 20 September 2013 Capitalism vs. Socialism Introduction While there are multiple different forms of world government in existence today, perhaps there are none as diametrically opposed to one another as capitalism and socialism…
Capitolism vs. Socialism
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