Describe or discuss the following concepts:
The capitalist model The Capitalist Model is a defined economic system that supports the system of private ownership of natural resources, and the production of goods and services. This type of economic system is seen as ‘self-serving’ as the owners of these various businesses are concerned with the profit margins gained based on their labor and ownership of the various businesses. This system of economic development provokes the culture to think in terms of self-survival and excess because of greed to own and make more than anyone else. In this type of system both suppliers and buyers compete with each other to see that they can get the most for the money they intend to spend. This system resents the regulatory efforts of the government and suggests that when government is involved extensively in regulating business products, services, and prices; then the system becomes flawed and cumbersome for all involved. This type of economic system does pose the problem of creating and maintaining a dire difference in the economic classes. The rich become richer and poor remain poor, or if they do reach some level of economic achievement, it is stagnant at best. The socialist model The Socialist Model of economics is a system wherein the natural resources and the production of goods and services are collectively owned. In this particular economic system, an individual right of ownership is limited by the government and regulations set by the government. This system encourages the thought processes of looking out for everyone on an equal basis and is considered less ‘selfish.’ This system is said to encourage the rise of the provision for the common good of the people rather than pure motivation of private concern. This system provides a sense of everyone working for the good of all and not out of self-interest as well as provides for less economic disparity among the... [continues]
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(2010, 10). Society's Social Problems. StudyMode.com. Retrieved 10, 2010, from http://www.studymode.com/essays/Society-s-Social-Problems-425968.html
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"Society's Social Problems." StudyMode.com. 10, 2010. Accessed 10, 2010. http://www.studymode.com/essays/Society-s-Social-Problems-425968.html.