Capitalism and Socialism are both determines of an economic formation involving self-possession of natural resources and property, this however is where the similarities end.
Capitalism involves the toffee-nosed ownership of property, search of own(prenominal) profit and the free competition and consumer sovereignty. Socialism is on the early(a) side of the spectrum with its collective ownership of property, pursuit of collective goals and the organization control of the economy.
Private ownership of property allows for individuals to own virtually anything where as the socialistic collective ownership of property limits the right to private property which is all owned by the government. The capitalist pursuit of personal profit encourages individuals to attain and accumulate property. This differs greatly form the socialist pursuit of collective goals which outlaws private trading as block market activity (p.402).
The final difference involves the measurement of government activity (or lack of). Capitalist societies encourage a free market system with no government involvement, accept the economy will regulate itself (p. 401). A socialist inn however disagrees with the capitalist views and allows for the government to control the entire economy.
So which system woks the best? In terms of the productiveness of an economy downstairs either system, it would be determined by calculating the nations gross domestic product and comparing them. When this was done capitalist countries productivity was higher than the socialist countries (p. 402).
Economic inequality is determined by the distribution of resources within a society (p.403).
This was done in the 1970s by comparing the cabbage of the richest and poorest five percent of the population (p. 403). These findings found that although capitalist economies do have a higher standard of living, they generate great income disparity (p. 403).
Each systems approach to personal freedom is very(prenominal) contrasting and while the socialist nations personal freedom is almost...
The concepts of capitalism and collectivism are defined and differentiated in a very easy way so that even novices to the subject arouse understand the concepts. The essay contains work citations which increase its weightage. Good job.
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