Capitalism and Socialism

Capitalism vs. Socialism: A Comparison

Capitalism is an organized economic and political system of governance that a country chooses as a system of trade and industry in which private owners benefit rather than the country. Socialism, on the other hand, is a structured social organization and economic theory that advocates for a method of production distribution and economic exchange that is governed, regulated, and owned collectively by society. As a business student, prospective leader, and manager, the context of this paper is to examine the world of business and the economic forces that affect the world, taking into account the economic climates that effect the company. The main focus of this paper will indulge a comparison between the perspectives of capitalism against socialism aiming to support the soundest philosophy that is believable.

The Rise of Socialism

During the early nineteenth century, there was a notable rise of Marxist socialists, anarchists, and even Christian socialists who were on the revolutionary drive to campaign against Capitalism. Socialism at the time was viewed as a positive radical change that appealed to most of the public. The widespread socialism ideas of governance and economic structures promised a better future for a system where privatization and individualism of ownership of the market forces in production and profit were to undergo a complete shift. Socialism to date is a preferred system for a fair society that does not discriminate only by the representation of the working class. The advent of socialism meant that all the people in a given community were able to plan the social and economic development instead of relying on a capitalist system that was only motivated by profit competitiveness, which dictated the social and economic development (Pettinger, 2016).

The Modern View: Capitalism and Socialism

In the world today, the view of contrast between capitalism and socialism has taken another dimension where the countries are only classified as more socialist or more capitalist than other countries. Most countries take an off bench approach towards defining their economic structures as an individually defined economic and social system for fear that one system may affect the other if mixed together in an existing economy. Most modern capitalisms hence adopt a more hybrid approach with a capitalist economic system having many features of socialism integrated into its structure. Capitalism advocates for market privatization purely for profit maximization that is very competitive with fewer regulations. An astute state, however, through the policy of socialism, would aim to dominate the control of the markets and profits supplementing the same market to ensure its progressiveness.

Advantages and Disadvantages: Capitalism vs. Socialism

Capitalism being owned by enterprises or shareholders has some substantive advantages over socialism. The capitalism model system is distinctively designed to prevent a distinct class or wealth owners from emerging and rising beyond control. Capitalism ensures genuine political democracy with an equal chance for equal distribution of income and creation of wealth. Socialism has its advantages when it comes to economic democracy but with the foregoing of a genuine political democracy. Socialism realized in the Soviet Union had achieved high levels of material security of both goods and steady income, there was virtually a non-existent unemployment rate and very stable job security. However, there was a very low drive to trade and property commercialization and an authoritarian control of the state which influenced its failure (In Wilkinson-Weber, & In DeNicola, 2016).

The Success of Capitalist Systems

The Western market, however, has flourished with the generations of capitalist social models. Attempts to achieve socialism were mostly attempted by the ballot method rather than a revolutionary method, thus making the widespread adaptation of socialism a drastic failure. The social considerations of the capitalist system are unattractive but have proven to be a more efficient system compared to the socialist system. Countries around the world that have adopted a mixed social system of both socialist and capitalist systems have managed to achieve harmony in their economic, social, and political structures and systems. One factor that may have been the growing gap between Soviet and Western economic performance brought forth disparities in living standards. But for intellectuals, there was another, perhaps more important, factor connected to the nature of their work as intellectuals. Soviet intellectuals had long resented the constraints on their freedom to pursue that craft without interference from Party officials. The image of freedom of thought in the West was very attractive as a capitalist nation.

Conclusion

From a personal perspective, the decision to adopt a specific social and economic system virtually depends on the existing markets of a given environment. Countries with very stable economic backgrounds with natural resources and strong cultural, social, and religious values can comfortably accommodate socialism as an independent social system. The countries that are faced with very difficult economic and political backgrounds need an aggressive capitalist economic system of social, political, and economic governance to be able to achieve a balanced society all around the world. Consequently, such governments should equally provide an opportunity to adopt useful policies from both social systems in order to realize success both politically, socially, and economically. Although the fairest system to society is undoubtedly socialism, capitalism stands as an obstacle to progress in most countries around the world. As a business student, future leader, and manager, learning both positive and negative lessons is a step towards the invention of a new social system of governance and economy. The most believable system is socialism.

References

In Wilkinson-Weber, C. M., & In DeNicola, A. O. (2016). Critical craft: Technology, globalization, and capitalism. London: New York: Bloomsbury publishing Inc. 2016

Pettinger, L. (2016). Work, consumption and capitalism. London; New York: Palgrave Macmillan. 2016