Compare And Contrast The Key Components Of Capitalism And Socialism Capitalism and socialism are somewhat opposing philosophies in economics. Economic equality and the function of government are the primary arguments in the socialism/capitalism debate. Capitalism is a system in which individuals own almost all the economic resources and means of producing goods and services. In a capitalist society there is no government interference in the operation of the economy. The price of all goods and services depends largely on supply and demand.
The biggest difference between communism and democracy lies in their economic systems . In the system of communism production and distribution of goods and resources is completely controlled by the government and is shared by the society equally. It is not so in case of democracy where these things can be owned by individual citizens. Community has the main control over resources and goods to prohibit the rise of a single person or group over the others. Democracy allows for free enterprise and accordingly the economic status of people may vary in a country from very rich to poor.
Capitalism and democracy reflect the competition of appealing to a greater audience; whether that be opposing political parties or rising businesses and stocks which strive for the most success. Success is determined by majority, not individual, therefore although the input of an individual helps compose a majority, a single individual’s mindset is merely irrelevant if others are not agreeing with their
The first set is the prices of current output and the second set consist of the prices of assets. Capitalism is an economic system characterized by freedom of the market. It is different from many other economic ideas by the fact that capitalism gives individuals freedoms with minimal government interference. In a market capitalist system land is private property. From this business can be formed by individuals by buying the land and equipment.
“It follows that people should enjoy the liberty to manage their own lives, associate as they please, exchange with anyone and everyone, own and accumulate property and otherwise be creative by state expansion into their lives” (Tucker, n.p.). Capitalism is defined as “an economic system in which property resources are privately owned and markets and prices are used to direct and coordinate economic activities” (Economics, p. G-2). Capitalism promises nothing, but gives you opportunities to earn what you want. Too often we hear people use the term Capitalism like it is a bad thing, the reason for all of our economic troubles. When things do not always turn out the way that they are supposed to and take a turn for the worse, primarily the blame is pointed in the direction of Capitalism.
If we lived in a society where everyone was paid equally, despite their different inputs, people would surely vote to create a system of incentives and rewards. Democracy therefore strikes the balance between the corruption of absolute power and the lack of incentives, between unrestricted meritocracy and egalitarianism. It is the primary tool of moderated
Power and wealth should not be distributed equally in a society, this is why capitalism is a more effective system. It is against human nature for everyone to be equal, and people who worked harder than others should be rewarded accordingly. A classless society is not a realistic society. This would only work in a perfect society, and such society has never existed. In theory, communism may sound as an appealing form of government.
Executive: usually the head of state; approves the laws – Pres. Barack Obama in USA 3. Judicial: interprets and enforces the laws Capitalism versus Socialism * Both are economic systems, NOT forms of Government. * Definition: Capitalism is an economic system that emphasizes private ownership of the means of production or a privately controlled economy. In a capitalist society, you have a free market and companies live by the profit motive.
Capitalism is considered an economy based on who has the best. If you have the best store you will have more money. If you have the best designer you will make the most money. When socialism the economy is based on everybody gets a portion. If you own a small carry out then you can be the private owner, but if it would come to owning Wal-Mart you would have to give it to the government and it would be everybody’s.
The services provided by welfare states differ from country to country, some have highly developed systems than others (Giddens, 2009). In most societies, poverty and social exclusion at the bottom are alleviated by the welfare states. This essay is therefore going to discuss how these welfare states use ideological state apparatus to secure legitimacy of continued inequalities in capitalist societies. Ideology can be defined as shared ideas or beliefs which serve to justify the interests of dominant groups” Giddens (1997:583). Its relationship to power is that it legitimizes the differential power that groups hold and as such it distorts the real situation that people find themselves in.