The Benefits and Problems of Two Economic Systems, Capitalism and Socialism

There is a big argument between the two economic systems capitalism and socialism capitalism is when an individual can own a private business and make money for him/herself. Socialism is when the government controls the means of production. Overall, I believe that capitalism provides the most benefits to the producers and the consumers. A better definition of socialism is that you can only work for government-sponsored businesses. This means that you cannot make your own business and provide whatever service and/or product to the people a passage called Capitalism and Socialism Reading stated, “It was created in an attempt to eliminate the differences between the rich and the poor.

” The big negative to this is that the government rarely does anything as well as a private business. However, everyone will be paid the same and “everything” will be equal.

Even though everything will be equal, nothing will be fair. Doctors and cabdrivers will all be equally wealthy. For example, say you make .

00 an hour, the government will take half of that and give it to a drunken fella on the side of the road so that they (we) are all equalt That is how a social government will feel This will not be fair to the doctors who have spent many years or school and labor to get a degree, or to the cab drivers who are literally high school dropouts. Even though everything will be equal, nothing will be fairs As you can assume, knowing our society today, many problems would arise.

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On the other hand, capitalism is more supportive of the people. In this economic system, the people can make their own business(es) and no one is forcing you into any exchanges. The perspective of the country changes because they know they have a say in the way they run their business.

The marketplace gets to make the decisions It also changes the way people get money compared to socialism. However, classes would be made like shown in The Pyramid of the Capitalist System. The more labor and schooling you put into the job/career, the better salary you get. This would create a natural conflict because people would realize that they have to work to get what they want. The doctors who have spent many years of laborious school would make good money People who waste all their money on drugs and beer would be poor, and Pay/wealth would be fair; not equal, but fair. This brings benefits because people who work hard get what they earn and it would teach others they shouldn’t just get money handed to them.  After considering the benefits and problems of both systems, I would still have to say that capitalism is the winneri it is fairer to the government and the people. Capitalism would also let the people decide what would be produced and what would be reduced. Therefore, my opinion still stands strongly for capitalism.