Capitalism, Socialism, and Mixed Economies
Throughout this class we have discussed many different topics but capitalism, socialism, and mixed economies made me want to get a better understanding of the three. Comparing and contrasting each of their strengths and weaknesses would be the ultimate goal. As researching deeper into each of these topics, capitalism, socialism, and mixed economies they all have many different strengths and weaknesses.
Capitalism is "an economic system based on private ownership of wealth, which is invested and reinvested in order to produce profit" (BOOK). When in a capitalist economy, it is described as the means of production are distributed to the private persons and that the market functioning determines the production and the pricing of the goods and services (Oak, Manali). There are many different strengths that go along with capitalism, such as, capitalism has an open competition in the market which leads to more and more economic growth. Another strength of capitalism is where the consumers regulate the market in giving a rise to the economy. This is considered by many people to be the greatest strength of a capitalist economy.
Capitalism has its many strengths, but it also has its weakness also. One weakness of capitalism is some people believe that a capitalist economy can make it to be an unfair competition. (Oak, Manali). Also capitalism makes an economy that is all about money, they are allied money- oriented. This causes a major divide between the rich and the poor which causes controversy. Another weakness of capitalism is that the smaller businesses get taken over by the bigger businesses which leads back to the unfairness of competition.
Socialism is considered to be a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. (Definition). Socialism in its truest sense means equality by...
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