Published on September 1, 2020

Socialism Vs Capitalism


socialism-vs-capitalism.jpg

The primary difference between socialism and capitalism is their ideology. In socialist ideology all the people are equal and government ownership whereas capitalism believes in individual skill and private ownership as follows:

1.Government vs Private Ownership:

  • In a socialist economy, the government own most of the companies and land. Government decide what to produce and in how much quantity.
  • In a capitalist economy, most of the companies are owned by individuals. The product is made on the basis of market demand and to gain profit.

2. Equality vs Inequality

  • In socialist ideology all the people are equal. For example, both experienced and novice worker are paid the same wage, determined by the government.
  • The capitalist ideology believes that all the people are unique for that inequality is inevitable. For example, an experienced and skilled worker is getting paid more than a young newcomer with nil experience working in the same field.

3. Bureaucracy vs Democracy

  • The socialist countries are bureaucratic mean less free for countrymen. Government ‘plan’ everything for the society. “Socialism is the forceful substitution of governmental plans for individual plans“.
  • In a capitalist country, people enjoy much freedom than that fo socialist countries. The government is elected by the voting system.

4. Monopoly vs Competition

  • In a socialist economy, the government create a monopoly and try to destroy all sort of capitalism in the country.
  • In capitalist economy, the market leads by restless competition among the private sectors in both home and abroad.

5. Free Healthcare vs Paid Healthcare

  • In socialist country the government gives the “free healthcare” to the citizen.
  • In capitalist country, the healthcare system is run by free-market or private organisations.

6. Environmental Pollution

  • In a socialist system pollutants from factories are let off because of corruption in the management. For example, Hundreds of socialist factories in Russia dumped untreated waste and sewage into the Volga River for this reason thousands of fish has been killed.
  • In a capitalist system, private companies take incentives not to spread pollution due to the legal rules of the state. “The collectivist viewpoint that was adopted by the American legal profession argued the following: no individual or group of individuals should stand in the way of the economic progress of the entire community.”

7. Taxation System

  • In socialist countries, the advocate “progressive” income tax on the rich capitalist minded entrepreneurs.
  • In capitalist countries, skilled and hardworking people are rewarded with good wage. “Capitalism encourages upward mobility.”

Bibliographical Sources:

  • THE PROBLEM WITH ECONOMICS, THOMAS J. DILORENZO, REGNERY PUBLISHER, 2016
  • MORALITY AND CAPITALISM, COPYRIGHT 2014 DAVID L. KENDALL
  • KEYNES AGAINST CAPITALISM, JAMES CROTTY, THE TAYLOR & FRANCIS GROUP, COPYRIGHT 2019


Social Media Links:

       

©2020 examhotwire.com



Home | About | Exams | Blog | Privacy | Disclaimer | Terms and Conditions | Contact

©2020 examhotwire.com