Comparing the pros and cons of socialism and capitalism

Reference no: EM133315599

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

Questions Cloud

Describe the communist system totalitarian : Why does Vaclav Havel describe the communist system totalitarian? What is your opinion of this assessment?

What are some things colin could have done in or after : What are some things Colin could have done in or after the meeting when Henri verbally attacked him? Is there anything more Raouf could have done during

Variety of foreign markets with little customization : Identify several products you think could be marketed in a variety of foreign markets with little customization

How can the whole of irish history explain the troubles : How can the whole of Irish history explain the Troubles? What events from the past led to the Troubles that occurred in Northern Ireland only 20 years ago?

Comparing the pros and cons of socialism and capitalism : What would be a good response to the above - They both are the ideologies of the same economic system which seek to justify the allocation and ownership

How did the movement originate during the late middle ages : How did the movement originate during the late Middle Ages (for the Renaissance and Reconnaissance, from unit 10, Reform and Renewal in the Greater West.

What should a company in that sector do to avoid risk : what can go wrong in a way that affects the entire sector. What should a company in that sector do to avoid risk or mitigate risk.

Why the event was beneficial to them : How many will attend the event, age, gender, where they come from / where their businesses are located, annual household income, what area of event planning do

What buffers can you implement to protect yourself : What buffers can you implement to protect yourself?Is there a crisis that you or your project is currently experiencing? If Yes, what are the brutal facts?

User Account

All Pages