A country’s economy may be of two types, communism or capitalism. A communist economy is one which the businesses are run and controlled by the government and the people paid for their efforts. On the other hand, a capitalist economy is one where the businesses are managed privately. According to Karl Marx, a capitalist economy is usually controlled by democracy while a totalitarian government controls a communist economy. Capitalist economies have been found to excel more than communist economies. For capitalist environments, the citizens are motivated as people get motivation from how hard they work. The government allows people to practice free enterprises and thus focus on improving their lives. The following paper will take a look at the …show more content…
In most private firms, people are paid as they work, whereas communist economies the pay is standard regardless of the hour 's people work. Privately owned businesses give people the motivation to work harder as they are motivated by the pay they get. People hired by the government, on the other hand, do not have motivation as they know that at the close of a given period they will still receive the expected pay. This makes capitalist economies progress more than the communist environment. As such, the government works to translate its economy to capitalism as they know that this will improve the economy drastically.
In capitalist economies, people focus on the progress of their lives rather than the community as a whole. In a community, people have different rates of motivation. Some individuals work on their own without external forces. Such people do not require supervision and thus make excellent business people. On the other hand, some individuals must be supervised for them to produce results. Such people may not be entirely comfortable in capitalist
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The distinction in classes is due to the various efforts people input in their daily schedules and as such turn different pays at the end of the day. Industrious and creative individuals are those who are likely to form the highest social class, whereas the lazy ones will form the lower social class.
Private investors also control facilities such as education and health. As such, they ensure that they provide the best services they can to the members of the public. The workers providing the services are under strict supervision and therefore ensure that they also provide good services to the public. Usually, these facilities are more of investments and as such provide excellent services.
As much as it benefits particular individuals, capitalism has its benefits. First, people have their freedom to express their talents and invest freely in different businesses. When the enterprises are government controlled, people have limited choices of jobs and thus have to settle for the spaces of employment at their disposal. Rarely do people find jobs in which they can express their talents and abilities. Most people focus on getting a job to sustain themselves rather than doing what they enjoy. Capitalism, on the other hand, encourages creativity and expression of selves. Not only do people work on what they love, but they are also able
Klemens has stated that “the power of a free labor force has made capitalism a very powerful force in our society”(123). The American workers have worked hard to make America better than it was. There were also “intense business competition” that have helped each business to try and work harder to be better than other businesses (123). This aspect of capitalism helps the nation as a whole. People are working harder through competition, which creates the better outcome of products.
In fact, the rich individuals prefer capitalism because they use their power to ensure that the poor remain oppressed, at their expense. Moreover, the book profoundly illustrates how work could lead to the dehumanization of people. I highly recommend this book to everybody who wants to understand the plight of workers in a capitalist nation. Notably, this book is relevant today, given that oppression in the workplace is yet to be eliminated. When people read this book, they get a picture of the mess created by the capitalist
Capitalism: Pro and Con by Phil Washburn is a philosophical debate seeking for reading to determine whether capitalism is a respectable way of society that provides the most sensible format of government for justice to thrive. The author first seeks to analyze the good of capitalism mentioning that it is the most practical answer for the issues that arrive from the idea of Justice. The key factors for the pro-capitalist society is people can succeed and or fail, government allows the economy to proliferate on its own, and most importantly what a person gives to society (making a living for themselves) is what they are able to take from it (profit and consumerism) (Washburn, pg.155). Afterwards, Washburn seeks to counter the argument and writes
One of the major differences between capitalism and communism is who controls the resources. In a communist environment, the government has full control of resources; in a capitalist country, the resources’ are the owner’s responsibility. In the US “We, the people” have full ownership of our property; in North Korea, however, they have no real ownership of their property, the government owns it. America is a classed society, as most know as being the lower, middle, and upper classes for the poor, middle wealth, and rich, respectively. Since wealth is distributed somewhat equally in a communist economy, this system is nonexistent.
He thought “Irresistible energy and efficiency of harmony and cooperation” could help the society move forward and create benefits for the work force, but the government will still regulate and guide them to public interest (Clements 9). Even though there could still be some people who still try to take advantage for their own personal gain. Capitalists try to maximize as much of their profit without taking into account the
The idea behind this modern economic system, capitalism, is that it is not an economic activity’s usefulness- it’s the fulfillment of the actual need of an individual-that is vital, but it’s only its commodification
However, capitalist stand by the system that the country 's industrial and trade system should be managed by private owners, which implies the function of
Communism builds on the idea that everyone is the same and should earn the same amount of money regardless of their profession. The most important with communism is that there should not be any class distinctions. China, Laos, Cuba and Vietnam
(Cullip) This mindset helped to increase in their income to satisfy their and demands and be able to pay for the goods and services they wanted, people knew they had to be determined and dream. For that very reason, people knew they had to insert all they have to succeed in this capitalistic society. It creates unnecessary exhaustion, fatigue and stress.
Instead of capitalists or private sectors owning the factories of production, the government owns them. This in turn results in the government collecting the profit instead of just businesses taxes. Pros and Cons Proponents of both systems have continually argued which economic system is better. Both have their advantages and disadvantages. Capitalism makes sure that an economy will produce the best products and that these are priced reasonably.
Capitalism and Socialism are types of systems throughout the world in different societies that have had their successful periods of time, but did not show to have the same success at other times during the course of history. Socialism’s theoretical essence says that ownership of property should be in the government’s hands meaning that government has more rights in the assets than individuals do while Capitalism gives to the individuals the right of property, creating a better society since the individuals can produce and purchase as they need to. Capitalism is the political and economic system where land, factories, companies, etc. are owned privately to produce profit for those who own them. Prices of services and goods vary from the costumer’s
It provides capital for economic development and encourages global expansion by compressing the world into a single space (Robertson and Khondker, 1998). This in turn delivers political stability (Miller, 2001), and as is seen in China, improves living conditions and educational opportunity for more people (Chun, 2013). Competition often drives technological innovation, and online debates has pointed interest towards capitalism in providing the impetus for democratisation through the creation of a middle class that demands civil liberties (Bailey, 2007). Furthermore, where individual liberties are prioritised, individuals are able to develop hobbies and activities that allow them to travel, create and explore, which arguably fosters the control over one’s environment that Marx believed to be natural. Hence, capitalism could possibly reduce alienation, although this can be considered to ultimately be a form of false
The production of goods and services is mostly privately owned and operated, and profits belong to the private individual only. At the core of Capitalism, is the principle of Individual Rights and promotes individual freedom. However,
Capitalism is understood to be the “economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.” In modern society, capitalism has become the dominant economic system and has become so integrated that it has resulted in a change in the relationships individuals have with other members of society and the materials within society. As a society, we have become alienated from other members of society and the materials that have become necessary to regulate ourselves within it, often materials that we ourselves, play a role in producing. Capitalism has resulted in a re-organization of societies, a more specialized and highly segmented division of labour one which maintains the status quo in society by alienating the individual. Karl Marx and Emile Durkheim theorize on how power is embodied within society and how it affects the individuals of society.
Though these three systems have different advantages and disadvantages, the lack of government intervention causes capitalist economies to be the strongest. With little to no interference from the government, natural forces of supply and demand are present, allowing exchanging of goods and services to frequently occur which contributes to the growth of the economy, competition is not limited, causing companies to become more productive and innovative, and all citizens are encouraged to work hard in order to become wealthy. Although there is inequality amongst the people, capitalism makes personal growth in wealth achievable for all people, and unlike communism or socialism, allows people to earn the lifestyle they desire with hard work. Winston Churchill exemplified this idea through saying, “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of