Essay The Efficiency of Economic Systems - 959 Words

Conformation or competition? Over the years, the differences between capitalism and socialism have led to contradictions in several countries on how to run the country economically, socially, and politically. Between these two economic systems, people usually debate about the role of the government and economic equality. Although, capitalism and socialism have similar characteristics, the differences between capitalism and socialism make capitalism a better way of life. Most importantly, both socialism and capitalism have established effective ways to run economies. In capitalism, private owners control the country’s trade and industries and own their property unlike socialism where the community as whole owns the means of production†¦show more content†¦Moreover, socialism prevents economic growth unlike capitalism. Capitalism allows the economy to grow because of the individuals investing, producing, distributing, and repeating the process over and over. Socialism d oes not allow for supply and demand since the community produces supply to an exact amount and individuals can not invest. Once more, capitalists agree that the public’s â€Å"pursuit of their individual interest creates beneficials market conditions that in turn contribute to the good of society† (1) just as the capitalist philosopher stated it. In all, capitalism provides the community with sufficient needs to establish a better economy for everyone. Furthermore, capitalism and socialism also differentiate each other politically. In debates, one of the most discussed arguments includes the role of the government in each economic system. Under socialist nations, the government has a vote in every community related issue. Socialism gives the government the power to dictate how the public runs enterprises and its production. In capitalism, the government has no intervention in individually owned enterprises and or productions. Capitalism allows individuals to make and d istribute products and buy and sell property for however much they wish. Adam Smith believedShow MoreRelatedThe Most Convincing Justification for Private Property1201 Words   |  5 Pagesjustification for private property provided by Ziff is that of economic efficiency. Private property incentivises innovation, lowers the cost of dealing with externalities, and with moderation, reduces the susceptibility of property to the tragedy of the commons. Economic efficiency holds particular weight because of the significant amount of today’s societies that rely on a market based system to conduct business, trade and commerce. This system lists private property as one of its founding tenets andRead MoreA Research Based On A Cross Country Data Essay1216 Words   |  5 PagesMauro (1995) conducted a research based on a cross-country data to evaluate causes of corruption worldwide. 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