A Comparison Between the Economic Systems of Capitalism and Socialism

The economic system of Capitalism is a system in which the economy is based on private and corporate businesses, Capitalism originated from Adam Smith and became the dominant economic system in Western Europe around the 19th century. Socialism is the economic system in which the workers have ownership and control over the industry. Socialism originated from the ideas of Karl Marx Capitalism is based on money and a free market economy, In capitalism, the government does not control business or the economy.

The belief behind Capitalism is that the more a person works for what they want the more they will be able to achieve it Also in Capitalism, no matter what class you are born in you are able to work and move up in society.

Capitalism is widely accepted and used because it gives citizens more freedom than other economic systems Adam Smith believed there is an “invisible hand”, The “invisible hand” is the idea that the marketplace will respond to public demand and in return, make the supply.

In a capitalistic economy, the government is not involved with the economy and does not financially help its citizens. Instead of government assistance, people are expected to look to friends or family for financial support Socialism is an economic system that is based on community ownership and government control over the economy. Socialism attempts to replace a class system with one equal classt theoretically, wealth is distributed evenly among the people.

The government that is based on Socialism provides more public services to the citizens than Capitalism.

Get quality help now

WriterBelle

Verified

Proficient in: Economics

4.7 (657)

“ Really polite, and a great writer! Task done as described and better, responded to all my questions promptly too! ”

+84 relevant experts are online

Hire writer

The government controls the nation’s resources and attempts to control the economy and keep it fair so that there is no rich or poor I believe capitalism would be best for my society. With Capitalism anyone can start with nothing and rise up to obtain a lot of money through hard work and determination. Capitalism pushes people to work harder in order to get what they want in life. There is often a large consumer market with capitalism which pushes companies to improve their products and invent more useful things for people to buy Capitalism comes with many more freedoms than other forms of economic systems and provides more rights for everyone.