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Captialism & Socialism

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Latisha Pena 07/12/2013 Assignment 06 SO115 Essentials of Sociology

Compare & Contrast Capitalism & Socialism

Capitalism and Socialism both have their differences and their similarities. Capitalism

is known to come from socialists from the mid-nineteenth century and is also known as Pure

Capitalism which is another name for Laissez-Faire. The United States, Canada, and Great Britain

are countries whose economies are driven by the principles of Capitalism. The vital features for

Capitalism is private ownership, for example you own your own property such as housing and land.

The second is market competition which means competing with one another, third is the pursuit

of profit, which in this case can mean individuals selling items for more than what they are worth

and what they paid for themselves . Capitalism has been criticized for leading to social inequality.

Another is that the tiny top layer wields vast political power. Capitalists believe that he only purpose

of a government is to protect its citizens from force or fraud. In a capitalist society all people

can start any kind of business they want. From a purely economic view a capitalist is a person who

buys in order to sell for profit.

Socialism is quite different compared to capitalism, almost like an exact opposite

Instead of the ownership of private property, the government plays a large role where society owns

social property such as banks and factories. Socialism is a term for political and economical theory.

Socialism arose in the late eighteenth and early nineteenth century. The vital features of socialism

is public ownership of the means of production, central planning and the distribution of goods

without a profit motive (pg 343). In this kind of collectivism the government owns the means of

production. Some criticism came from economic and political models and are not compatible with

civil liberties. Socialism is also known as a collective nature. he best definition for socialism is

the equal distribution of society’s goods to be achieved by the government.

Capitalists and socialist disagree about certain ideas each group has and criticizes

each others ideas. It appears that capitalists are greedier and care about what is better for himself

or herself than everybody as a whole. Socialism would be the system a moralist would more likely

follow than capitalism. Some similarities between these societies are as follows, they both have

some kind of capital ownership, materialistic ideology, a “social safety net” , and a purpose for

education. In conclusion ,the key to economic success lies in the socialists’ economy because they not

only offer freedom for everybody, but a way so all businesses are fair with each other and to their

employees also.


Essentials of Sociology (pg342)

Essentials of Sociology (pg343)…...

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