BUSINESS ETHICS EASSY
STUDENT NAME : Xiaoyun Fan
STUDENT NO: FNXXIA002
TUTOR: Gabriele James
Why Capitalism is superior to Socialism
Introduction : Difference between the two economic system
Capitalism is an political and economic system in which individuals own the major portion of economic resources and create the goods and service for profit. All the production, distribution and exchange of wealth are made by the individuals or companies without the interference of government. There is no central governing institution which set the production goals for the individuals, the private owners decide what and how much amount to produce by themselves according to the market demand. Everything is operating in the free market system. However socialism is on the opposite side of capitalism. Under socialism ,the individuals are not able to have their own capital and properties, everything is governed and planned by the government and all the productive equipment and resources belongs to the public. Socialism emphasized on distributing wealth so that everyone would receive the equal amount of income.
In the real world , there are only few countries belong to pure socialism or capitalism. Most of countries apply the mixed economic system. For example , United States is considered to be a capitalist, but the Social Support System which help the people who are not able to work is the socialist. However we can see from the fact that the European countries and USA which apply the capitalism as the major economic system are more developed than the countries which are the socialist like North Korea. Capitalism is a better economic system than socialism.
Moral justification of capitalism
The moral justification for the capitalism is that it’s the only system that provide for and protect the individual and his right to exist for own sake. Capitalism provide the equal opportunity to everyone...
Bibliography: CAPITALISM REMAINS OUR FUTURE By Allan H. Meltzer
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