Essay Socialism vs Capitalism

Topics: Capitalism, Socialism, Economics Pages: 3 (671 words) Published: November 8, 2013


Leadership and Group Theory Midterm Essay
Capitalism vs. Socialism
September 21, 2013

Although Capitalism has a different meaning in various groups, the term is commonly acknowledged as “the private ownership of the means of production, and the coordination of the economy by the market” (Bresser-Pereira, 2012, p. 22). On the surface, the meaning of capitalism seems straightforward; referring to an economic system in which private individuals, rather than governments, own property and businesses. But beneath the surface, strong currents of opinion and theory swirl about the term. Yet in contrast, Socialism is more collective, it allows for everyone to benefit from the economy, instead of only the rich. According to Radice (2010), “Socialism is nothing more than a planned state-capitalism with grab-motive left intact” (p.1), but truthfully Socialism is defined as the idea of equality; and classless society where there are no private sectors of ownership. I deem Socialism as the best support to leadership and group dynamics, because of the decision making process, interdependence, and group member commitment. Many observe that the large societal problems need solutions from governmental action, rather than private enterprise. Socialism deals with the society as a whole, there are no classes; everyone is involved in the decision making method by a consensus, which allows for everyone to influence the decision (Johnson & Johnson, 2013). I believe that Capitalism has been viciously attacked and ineptly defended. But, even in the nature of the term, it is still considered designed for one designated group, which is the private sector. The government does not have the bias of gaining profits, and the government encompasses elected officials to represent groups with a common purpose.

In allowing elected officials to represent the least among us, ensures that certain groups’ will have a voice. According to Coates (2013),...

References: Bresser-Pereira, L. (2012). Five models of capitalism. Brazilian Journal Of Political Economy /
Revista De Economia Política, 32(1), 21-32.
Coates, B. E. (2013). Embedding Leadership driven Conscious Capitalism into Corporate DNA.
Advances In Management, 6(4), 14-24.
Johnson, D.W., & Johnson, F.P. (2013). Joining Together Group Theory
and Group Skills (11th ed.). Upper Saddle River, NJ: Pearson
Radice, H. (2010). The Idea of Socialism: From 1968 to the Present-day Crisis.
Antipode, 4127-49. doi:10.1111/j.1467-8330.2009.00715.x
Schumpeter, J. A. (1950). THE MARCH INTO SOCIALISM. American Economic Review,
40(2), 446.
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