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Capitalism vs Socialism and Effect on Economy

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Capitalism vs Socialism and Effect on Economy

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  • October 2012
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Frank Liberti
Issue Essay 1
Capitalism compared to Socialism is the best format for the economy. When the two are looked at side by side they both have strong pros and cons. When looked at in a functional format to the economy and the real way that they would work, I believe, that capitalism would provide the best options. The concept of capitalism is a good way to help develop the economy, especially in a large economy such as the United States. The competition that is created by the capitalism boosts the economy and stimulates growth. Capitalism is the best way to go about the economy. Capitalism is loosely defined as an economy where markets are left alone and not regulated. The government is not in power over the markets. The only time that the markets would be regulated would be when there is distress in the markets. With the distress, the regulations are as little as possible. There is a patience that is used with capitalism. In it there will be no moves made in a down turning economy until the trends are strong enough to legitimize the regulations that would need to be set. Capitalism was a system developed in Europe. This system became popular once feudalism became obsolete and unpopular. It was very popular in the western part of the world and then began to spread and become popular in Europe. This economic system was made to promote economic growth through competition. The main focus of capitalism is to have competition to promote the best and cheapest goods and services. The term that is constantly related to capitalism is the French saying “Laissez Faire.” This is translated into “Let do,” and is roughly translated as “Let it be.” Socialism, on the other hand, is a strictly planned economy. The government will regulate the markets and plan the markets in a way that is believed to put the economy in its best form. This requires a lot of planning. It is meant to be able to handle large and small economies. Socialism frowns on the competition that...

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