History Of Capitalism And Socialism

History of Capitalism and Socialism

Socialism and capitalism are systems that have both been used in different settings across the globe despite their different settings. The main argument between the two is economic equality and government control versus freedom of choice without the interference of government policies. The interaction between socialism and capitalism came into place in the nineteenth century. Socialism focused on the expression of political and social reforms, power, and an ideal economic and social system that was intended to overcome capitalism. Socialism became influenced worldwide between 1848 and the first world war (Kowalczyk, 2015). Capitalism focuses on private ownership without the power of government being involved

Proponents of socialism believe that economic inequality reflects badly on society and the government should have complete responsibility for the reduction of programs that are lifting the living standards of the poor such as supporting free education and health care to everyone (Capitalism vs. Socialism). A socialist economic system operates by believing what is good for one is good for all and the government decides how wealth is distributed and provides for the people. In a complete social economy, there is no free market like there is in a capitalist economy ((Kowalczyk, 2015). Socialism focuses more on the needs of a society rather than wants to help create equality through the

They both focus on the means of production and products regardless of who is in control of the business. Although they have different meanings and opinions on who should be in charge, they each have someone who makes decisions for products and services of a business. Socialism and capitalism each determine the prices of goods and services either through natural supply, demand equilibrium, or by government policy (Peavler, R). Each economy has its own pros and cons. Starting with the pros, a capitalist economy can work towards riches and financial freedom that is earned with hard work. Market prices are determined by equilibrium, so they buyer and seller are able to compromise(Capitalism vs. Socialism). A socialist economy wants equality and having the same social benefits for everyone. Since the state is the primary employer for a socialist economy during times of economic distress, the state can order firms to hire so there is full employment (Walsh, N.).

Socialism is often planned and does not tend to have as many crashes due to the government being in control. Explaining the two economies in a positive way makes it easier to see how both can have positive outcomes and both want to make a profit although, how they distribute the profit is different between the