Capitalism & Socialism

Topics: Economic system, Capitalism, Socialism Pages: 3 (757 words) Published: January 21, 2014
Capitalism & Socialism
Different countries and different economic systems have different rates of technological innovation and adoption. For instance, many believe that Socialist countries have difficulties keeping up with technology advances when compared to Capitalist countries. What are the factors that contribute to a country's ability to innovate and adopt new technologies? What factors prevent these advancements? Which type of economy is best positioned to prosper in an economy that depends on technology and innovation? Please provide specific examples that illustrate your conclusions.

Capitalism promotes economic growth by providing an open competition in the market. Capitalism results in a regionalized economic system. In a regionalized economy, individuals are open to more options in business. They are exposed to competition and have to face different challenges and have to find solutions to them to stay in competition. However, Capitalism depends on markets and competition to drive growth. Selfishness of individuals in capitalist countries drives economies to the greater good. Socialism endeavors to only give people what they need, regardless of what they want, for the greater good (Colander, 2013). It is within this thinking that Capitalism would lead the way in technology development, “Out of the Box thinking” and trying for a competitive edge would drive technology advancements. Since corporations have moved a lot of jobs overseas to the lowest bidder the only way the United States is going to continue to strengthen the economy is through innovation. Capitalism is an economic and political system in which individuals own economic resources and industry, whereas under socialism, the state plans and produces goods among its citizens. (wisegeek, 2013) The problem with is, what would be the point of working harder, being smarter by getting more education, sacrificing more, or even cashing in on God given natural talents if...

Cited: wisegeek. (2013). Whats the difference between Capitalism and Socialism? Retrieved 2014, from wisegeek.com: www.wisegeek.com/what-is-hte-difference-between-capitalism-and-socialism.htm
Colander, D. C. (2010). Microeconomics (8th ed.). New York: McGraw-Hill/Irwin
Colander, D. (2013). Microeconomics. New York, NY: McGraw-Hill/Irwin
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