18 March 2011
Compare & Contrast
Capitalism and Socialism
These two economic and political systems, both having different concepts on how to govern a society, state capitalism and welfare capitalism , state capitalism only benefiting equal rights and freedom for the few and welfare capitalism benefiting for all.
In state capitalism, corporations are privately owned by people called capitalists. Capitalist are only on the motivation of pursuing their self interest, and will do anything to achieve this. That is by privately owning the majority of properties, and having total control over the consumer’s choice through a psychological mean (mass media). There is no competition or regulation in a capitalistic economy sometimes being called a laissez-faire economy. The capitalist economy only works for the capitalists in it.
In a socialist economy, natural resources, the production of goods, and services are collectively owned. Socialists are motivated by the pursuit of collective goals. Unlike capitalism, socialism works for the common good of all people. Income generating properties are not privately owned thus easier to regulate. The government regulates these kinds of properties and with the income generated, supplies housing and other social welfare programs to all of the people in the society. The economy is centrally controlled which means that government controls the economy in a socialistic view.
Having stated how each economic system works, both systems contradict each other on three major points that both share which is property, the pursuit of, and how they control the economy. In a capitalist economy, property (that generates income) is privately owned as to a socialist economy where property is collective owned, which means that such property is regulated by the government. Socialism is on the pursuit of collective goals, where capitalism hails “entrepreneurial spirit” and...
Cited: 1. Macionis J., John. Sociology. New Jersey: Prentice Hall. 2010
2. McKay et al. A History at World Societies: Since 1500. Hampshire: MACMILLAN PRESS LTD. 2009
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