Socialism vs. Capitalism

Topics: Capitalism, Socialism, Communism Pages: 3 (807 words) Published: April 27, 2013
Capitalism and socialism are two different economic systems. Which one of these systems is better? In order to debate between Capitalism and Socialism, it is necessary to understand what the differences, advantages, and disadvantages are of both systems. Socialism is the economic system in which the government controls and makes all the decisions. Capitalism is an economic system in which the means of production and distribution are privately owned and operated for private profit. In a socialist economy everyone acquires the same annual income, but in some socialist governments they endorse benefits or bonuses to employees. In capitalist economies a mass production of goods, prices are determined by what the consumer is willing to pay, business is set-up to make a profit, and there is a competition for goods being produced. The socialist society has a classless society and, the capitalist society has a society with classes.

In a socialist government, the government commands all of the production and distribution of goods. Socialism means direct control and management of the industries and social services. Therefore, socialism is the congregative ownership by all the people of the factories, mills, mines, railroads, land and all other instruments of production. This control is necessary in order to eradicate controversy. Socialism means production to appease human needs, and the government sells these necessities for a profit.

A socialist economy has high tax rates (40-50%) to support a large government which in exchange provides free education, welfare for all, universal healthcare, and social security. It supports worker's rights and freedoms over business profits and gains. In a socialist economy the government regulates how much income an individual can utilize or regulate,and where that income will go. Citizens have a say in defining needs. Socialist economies promote utopian societies, which are egalitarian....
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