Compare and Contrast Capitalism and Socialism and Indicate with Firm and Practical Evidence Which of the Two Is More Plausible for Social and Economic Development Essay

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Both capitalism and socialism are systems that may be used to do "good" or "bad" by those with power. It is for this motive that this paper endeavors to Compare and contrast the capitalist and the socialist development strategies and of the two an approach which can offer a reasonable solution to social and economic development. The essay will begin by defining the key terms like capitalism and socialism to give a foresight of what the main body will discuss. It will further indicate with firm and practical evidence which of the two is more plausible for social and economic development. Badie and Birnbaum (1983: 57) explain that within a capitalist society people are free to choose how to utilize their money. They may save it, donate it to charity, or purchase products and services. For these reasons a capitalist society is described as containing a free market. The market is all those things that money can buy, and the people can act freely concerning whether and what they buy. Within a socialist society the means of production and distribution are either determined by all the people through a government , or else select individuals within government decide for the people what will be produced and in what quantity, as well as determine who is entitled to that which is produced. There are many different types of power people may have. However, when speaking about capitalism those who have the most money are considered to have the most power. A person who dislikes capitalism will view the rich as having power, whereas a person who likes capitalism will view consumers as having power. In a socialist society it is always those who are in the numerical majority who have the most power. This binary view of potential political and economic systems may be thought simplistic, but it is a debate that is extremely common (Becker, 1975). In socialist systems, society

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