This essay has critically discussed two models, they are capitalism and socialism. I have compare the advantage and disadvantages of these model and analysis why capitalism is going to transit to socialism. Lastly, I have discussed how capitalism satisfies Rawls’ two principles of justice.
Capitalism and socialism
Capitalism has being developed over time to time. It can be defined ideally as an economic system in which the major portion of production and distribution is in private hands, operating under what is termed a profit or market system. (Shaw, Barry & Sansbury, 2009, p.127) The real capitalism is without government’s control over the market. Current capitalism is crony capitalism. Capitalism break the traditional relationship between feudal society and productivity, it has largely increase productivity and also promoted rapid development of science, technology and has greatly changed the quality of human’s culture and social values. The essential causes of capitalism are: people lose their production element; therefore they have to work for other. Another is a large number of money and production source are in private owns.
Features of capitalism are private property, profit motive, inequity distribution of wealth and competitions. Capitalism brings a lot of advantages to us. But it brings some disadvantages, such as inequity distribution of wealth, breed oligopolies and cause some environmental problems.
Inequity distribution is incarnate from layfolk earning money form labor, and capitalist earning money form their investment. It is a totally different way of earning money. In this way, it just makes poor people being poorer and rich people getting richer. Some countries adopt a highly tax pay system to solve this problem, but it just a short term solution.
Another issue of capitalism is it breeds oligopolies. Oligopolies are not good for the market, it creates instability within the market, supplies are more...
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