Essay question: What is the best policy for any country: capitalism or socialism? Introduction:
Thesis statement: It is much better to live in the country where the gap between poor and rich people is sharply noticeable, than to know that a person will never differ from the mass of people or feel a real freedom in his/her own country.
A. Capitalistic policy gives an equal opportunity to everyone to become a wealthy person. * Person can have his own business and develop it in the future. * The nation becomes rich
B. Market economy is the base of capitalism.
* Foreign investments
* Business cycle.
C. Advantages of capitalist mode showed by Adam Smith.
D. Socialism lost its popularity in the last century
Policy is a very difficult question that concerns all people in the world. There are many countries with different policies, but the political war between socialism and capitalism worries most governments in the world. Socialism is not as popular as capitalism, because this system lost its great popularity last century. The main idea of socialism is working for some group of people. Consequently, if you work this way you cannot be an entrepreneur nor have your own business. Socialistic government will never allow it. In such policy a person cannot be regarded as hard working, if this person works for him/herself, because someone’s work is only appreciated when this person works in some group and this work is directed to society’s benefit. Even though many people can say that capitalistic way of living, is very cruel because one of the rules of capitalism is “the most powerful will survive”, capitalism is a system that gives more freedom to people and day by day is increasing its popularity. So, there is a widespread opinion, that it is much better to live in the country where the gap between poor and rich people is sharply noticeable, than to know that a person will never differ from the mass of people and never feel a real freedom in his own country. Firstly, capitalistic policy gives an equal opportunity to everyone to become a wealthy person. Following such policy a person who has a strong character, knowledge and a huge desire, has a chance to try and make his own life better. There is nobody to forbid someone to have money and live a good life. Capitalism is a policy that gives a permission to have a private property and develop it. The base of capitalism constitutes from the producing goods and services, from commerce and other types of legal economic activities. The development of capitalism started in 15th century. Exactly from this time in European countries people started to open first banks, stock exchanges and many other companies. From this time owners of different companies produced their goods, sold them, got money for their goods and put them into the bank accounts. From this time people began to understanding what it meant to get interest on their money on the bank account. Of course, people may not have been so developed as they are now, but it was a very important progress in the world. 15th century was the time of origination of real business and entrepreneurship. This development had been continuing until the middle of 18th century. Historically, namely at this time the development of capitalism ended at all, but of course day by day all people witness a new development, and the economic world of capitalism will have some changes in the future. (Making capitalism more creative, n.d.). Secondly, capitalism based on market economy, while market economy based on private property and business cycle. Market economy is an important part of modern world. Business cycle is the mechanism of work of capitalism. This aspect almost makes capitalism. Relationships between money and goods are the main part of market economy. Capital turnover means making money from money. It means putting money to some business, that successful enough...