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Capitalism vs. Socialism

For the longest time, capitalism and socialism have been two of the most argued and debated topics. Many view socialism as the better choice because it evens out and distributes the wealth so not only one individual or a group of individuals control it all, and because socialists tend to pay more heed and take more caution in the careless using up of natural resources. Capitalism can be seen as the better economic choice because capitalist countries are usually much more technologically advanced, and because individuals can make their own business decisions and choose their profession with out trouble or disapproval from the government. While both economies have potential for success, capitalism is by far the better option for many reasons. Capitalism is the best way to run an economy because it allows individuals to make their own business decisions and to be self-motivated, it limits the power held by the government, and, unlike socialist countries, capitalist countries are more technologically advanced and better educated.

In order to fully and successfully present the argument, there are several terms that must be defined. Capitalism is “the economic system under which the ownership of goods and services are privately owned, and decisions concerning pricing, investments, and distribution are determined in a free-market system, primarily on the basis of competition between businesses” (Walter). A free market economy is “a system that operates independently of the government” (Walter). Laissez-faire economics is defined as “French for "let do," this phrase describes the capitalist economic system wherein business success and failure is determined from the course of events as they naturally occur, without government intervention. Laissez-faire policies could include low taxes, little government intervention, free markets, and private ownership of the means of production” (Walter). Socialism is “the economic system under which the government owns and administrates the means of production and distribution of goods. Goods and wages are distributed unequally on the basis of the work performed” (Walter). Socialism is often seen as the half-way mark capitalism and communism. Communism, however, is “the economic system under which a single authoritarian party controls the means of production. Under a communist regime, there is no private property, and goods are available to all and distributed equally” (Walter). A monopoly is “the economic system under which a market or industry is dominated by only one producer” (Walter). On the other hand, an oligopoly is “the economic system under which a market or industry is dominated by only a few producers” (Walter). And, finally, means of production are “the tools—such as land, machinery, natural resources, and factories—used in the production of goods” (Walter).

First, capitalism is a better way to run an economy because capitalists think those who have the best and most creative ideas, judgments, opinions, plans, and schemes have a right to “be rewarded with profits, and those that lack the motivation or resources” (Walker) will not be able to keep up with the competition. Those who want to succeed and put forth effort will do better than those who do not. Capitalism allows individuals to make their own decisions and to earn their wages based upon the amount and the quality of work that they put forth on a daily basis, which supports the statement that one of capitalism’s main ideas is “private ownership and the acquisition of wealth through profit” (Goodwin). If an individual has a reason to want to succeed, then they will do their job to the best of their ability, which will, in turn, add to and improve the economy and quality of life of their country. However, in a socialistic economy, an individual has little to no say in what they will spend the rest of their lives doing, which hardly supplies for much in the realm of motivation. Not having a reason to want to succeed, an individual is much less likely to do the best that they can, thus inhibiting the economy from growing, developing, and prospering, which in turn lowers the quality of living. As Adam Smith said, "Self-interest is the basic motivator of human action."

Secondly, capitalism is a better economic lifestyle because it limits the power of the government. In a socialistic economy, the government owns and controls almost everything, from the businesses to the means of production. However, “in a capitalist economy, the means of production are owned privately, and are, thus, free from government control” (Walter). Capitalists prefer private ownership of the means of production and businesses because “power is diffused between many businesses, rather than concentrated in a central government” (Walter), and because one of the main beliefs of capitalism is that “businesses thrive when people have a personal interest in their work” (Walter). Capitalism also has what is known as a free market economy, and with the free market economy come competition. “Businesses succeed and fail based on how well, compared to other businesses, they produce their goods, price their merchandise, invent profitable modifications to production, and market their products” (Walter). Another main idea of capitalism is the “profit and loss system, wherein businesses that fail to make ends meet often are forced to shut their doors” (Walter). Socialistic countries are the complete opposite, which means that their products are sold at prices set by the government and the idea of “individual or corporate profits” are unheard of (Walker).

Some see the government controlling all the means of production and businesses as a wise and wonderful thing because they believe that being “divided from one another by inequalities of wealth” (Kramnick, Watkins) will give the power to control the economy to the most wealthy instead of to everyone, and they would rather the government control it instead of those elite and wealthy few. However, sometimes giving the government too much power and control can lead to communism. This is exactly what happened to Germany and several other countries. Many times, an individual will take advantage of the failing economy of a country and become a dictator, as Hitler did.

Finally, capitalistic economies are more desirable than socialistic economies because capitalistic countries are usually more technologically advanced and have better systems of education. Capitalism is flexible and it allows a country to adapt to the “ever-changing economic cycles of various societies” (Goodwin). A country that has that ability to “adapt to the increasing and changing demands for a variety of goods and services” (Goodwin) will be more technologically advanced and will be up to date with the latest and greatest changes and discoveries being made to make life, work, and education easier, healthier, and better for all of mankind. However, if a country is stuck in a never ending, never changing cycle of government based decisions, change and development will occur much slower, making life more primitive compared to the developing and advancing countries around them.

In conclusion, both capitalism and socialism have their high and low points, but in the end, capitalism is by far the better way to run an economy. It is impossible to not notice that some of the most powerful countries in the world have capitalistic economies and that through this they thrive and prosper. Capitalism is a better economic system because it allows individuals to make their own decisions and to do well because they are self-motivated, it limits the power that a government has, and it helps the country become more technologically advanced and better educated. It is through all these things that a country becomes successful in trade and business, which leads to more money, more scientific and medical discoveries, and overall, a better quality of living for its people. If one works hard enough, they can be anything they want to be and do anything they want to do. There are no barriers blocking one’s personal progress to become what they want to be.











Bibliography
Berger, Adam. "Counterpoint: Socialism Keeps the Economy Stable." Points of View: Capitalism vs. Socialism (2009): 3. Points of View Reference Center. Web. 2 May 2010.
"Capitalism vs. Socialism: Guide to Critical Analysis." Points of View: Capitalism vs. Socialism (2009): 4. Points of View Reference Center. Web. 2 May 2010.
Goodwin, Chuck. "Point: Capitalism is Still the Best Economic Alternative." Points of View: Capitalism vs. Socialism (2009): 2. Points of View Reference Center. Web. 2 May 2010.
Kramnick, Isaac, and Frederick M Watkins. The Age of Ideology-Political Thought, 1750 to the Present. Englewood Cliffs: Prentice-Hall, 1979. Print.
Walter, Andrew. "Capitalism vs. Socialism: An Overview." Points of View: Capitalism vs. Socialism (2009): 1. Points of View Reference Center. Web. 2 May 2010.










Works Cited
Goodwin, Chuck. "Point: Capitalism is Still the Best Economic Alternative." Points of View: Capitalism vs. Socialism (2009): 2. Points of View Reference Center. Web. 2 May 2010.
Kramnick, Isaac, and Frederick M Watkins. The Age of Ideology-Political Thought, 1750 to the Present. Englewood Cliffs: Prentice-Hall, 1979. Print.
Walter, Andrew. "Capitalism vs. Socialism: An Overview." Points of View: Capitalism vs. Socialism (2009): 1. Points of View Reference Center. Web. 2 May 2010.




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This article has 5 comments. Post your own!

Prajesh said...
May 19 at 5:24 am:
Nice...... I like it..........
 
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AdamKinley292 said...
Jan. 24 at 2:19 pm:
This IS OMG Amazingggg!!! If this is true then this will be awesome i love history history is like my life
 
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AdamKin282 said...
Jan. 24 at 2:14 pm:
This Is Amazing I will Like To See More Of this
 
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rebeldiamond1313kd said...
Jun. 2, 2010 at 3:32 pm:

Nice, another paper. :)

I just throw my papers away. lol.

 
clumsy_one123 replied...
Jun. 2, 2010 at 3:44 pm :
well... maybe you should put them in teenink
 
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