Capitalism vs. Socialism

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Running Head: CAPITALISM VS. SOCIALISM 1 Capitalism vs. Socialism SO 115 Essentials of Sociology - Assignment 06 Running Head: CAPITALISM VS. SOCIALISM 2 Capitalism vs. Socialism Thou capitalism and socialism are opposing concepts for governing in economics they both have had its stronghold in different parts of the world, society and history. Each of them contain attributes that allow its’ system to function and succeed as well as attributes that contributes to a dysfunctional system with flaws and problematic issues. Capitalism has three fundamental features in which is based on private company ownership and means of production, the pursuit of profit, and marketing competition. With pure capitalism also referred to as laissez-faire capitalism, subsist when market services and production function without the involvement or interfering of government. However, state or welfare capitalism subsist when market services and production are owned by private sectors for the pursuit of profit yet are required to operate and function under rules and regulations that control even place limitations on what can be produced or sold. These rules and regulation are laws for market restraints were designed for the protection and welfare of the public. This deters private sectors from taking advantage by the overpricing of goods and services for gain of profit, yet it also allows the government to benefit through the collection of taxes. A primary shortcoming of capitalism is that it results in a society of social inequality. Such discrimination and classification by means of financial status has placed the wealthy population on top and the less fortunately population at the bottom. This unfair and inefficient Running Head: CAPITALISM VS. SOCIALISM
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