Socialism is when the state controls the means of production by manipulating prices of goods and wages of workers. Socialism also requires people to submit to the rule of law. In return for their compliance, citizens are provided with resources rationed by the government. In a socialist government you get pros like, free health care and other services provided. But with good comes bad, cons are high taxes, not as much incentive to work hard as in other systems. Excessive government regulation makes business slow and not very efficient. Let take Cuba for example, as an island Cuba needed to trade to live. As long as there was a community of socialist nations with whom it could enjoy favorable terms of trade, it was able to develop economically and raise its standard of living to a level that made it the envy of the rest of the Third World, a level that in areas such as health care and public education rivals industrialized countries like the United States. While its place in the international division of labor within the emerging socialist world system continued its role as an exporter of agricultural goods and minerals, the prices of these exports were indexed to those of imported industrial goods so that the labor value content of each were more nearly equal than you usually find. It was this unique equivalent exchange that has made economic development possible in Cuba since the revolution.
Liberalism is tricky to define since it is divided into classical and modern liberalism. Classical liberalism states that the government should take control of an institution in order to ensure that it continues to be of service to the people, free of charge. Classical liberalism does not see any need for the government to enforce law and order and subjugate its citizens under the iron rule of law and order. In a classical liberalist government you would have Lower taxes and more economic freedom. With that also comes lack of government regulation which would...
Please join StudyMode to read the full document