Comparing the pros and cons of socialism and capitalism

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Question: Comparing the pros and cons of Socialism and Capitalism.

These are the two major economic systems, although no one society is purely capitalist or socialist.

Some of the cons of Capitalism are monopoly power. Private ownership of capital enables firms to gain monopoly power in product and labour markets. Inherited wealth and wealth equality. Boom and bust cycles.

Some of the pros of Capitalism are consumer choice- individuals choose what to consume, and this choice leads to more competition and better products and services. The efficiency of economics and economic growth and expansion.

Socialism's major pro is social equality. Other pros are a reduction in poverty, regulation excesses of the free market externalities, monopoly, and monopsony. Lastly promotion of the common good and social welfare rather than selfish aims. Free education through college and free health care.

Some of the cons include higher taxes reduction incentives to invest and work, government failure in regulation and ownership of industry, and excess labour market regulation can lead to less employment and structural employment.

They both are the ideologies of the same economic system which seek to justify the allocation and ownership of the means of production of goods by and to other people in the economy.

What would be a good response to the above?

Reference no: EM133315599

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