From consumerism to mass production to personal workforces, capitalism and socialism are the polar opposites of each other.
How Capitalism Works Compared to Socialism and Communism
In stark contrast, socialism and communism call for the appropriation of property by the state and use of the labor of its citizens, free from exploitation.
The two alternative economic theories, capitalism and socialism, began as political ideologies in ancient Rome, Greece and other Eastern countries that ended up including the United States as its main example.
Following the conclusion of World War II, Western economic analysts credited their terms for the onslaught of capitalism, or the free market system of free trade, with providing the model for the international expansion of free enterprise. This occurred by the economic success of Western countries like the United States and Britain, which left Eastern countries under socialism or communism, essentially pushing people out of their land and economic freedom.
While we’re no longer at war, we’re now hearing a lot about the rise of capitalism and communism, not just due to fear and greed, but also due to its possible detrimental effects on our global body politic.
The spread of capitalism isn’t good and we shouldn’t accept it.
Capitalism is a free-market system and being free, but it’s not being fair to the population in comparison to a government-run economy, where the state is in charge of distributing and distributing the resources of its citizens.
Capitalism is proven as a system of doing business that works well, free from any corruption. While modern companies have an accountability to their shareholders that can provide resources and materials to serve their own interests in production, with socialism and communism, its citizens are in control of who manages the resources. This can lead to oppression, unlike the conditions of capitalism.
Why we should not embrace capitalism, socialism and communism
While capitalism may be good for business, it doesn’t need to be supported by people in order to serve the world’s needs. In fact, countries that were early adopters of capitalism started to see that socialism and communism have many problems, but since they moved away from capitalism, the advances in their programs are now underway.
There is no guarantee that a country will make as great of a change, with the same economic system, as has been successful in the past, and, where society is aware and understands that all governments are not the same.
The reason people should be concerned is that if the economy is being controlled by the state, not by the people, someone will ultimately lose. It’s the people who currently have all the advantage, and as such, they should retain all the benefits of freedom and democracy.
The idea behind socialism is to, in an economic sense, guarantee the wellbeing of everyone on earth. This is good because it would lead to a better quality of life for everyone on earth, regardless of whether they are in favor of communism or capitalism.
This is known as the spirit of cooperation and the foundation of communism. To its supporters, though, capitalism leads to the undermining of labor and protection of property. They feel that it leads to exploitative practices from both parties involved, and that people have no choice but to work for the corporations rather than the people.
Nonetheless, people are humans and, while not all are working as hard as they can to gain the upper hand, some people are able to make a good income in the world of work.
This is why we see this a great benefit to the state-controlled business system.
For example, it’s key that we maintain this economic system so that the market can maintain the strong demand for companies and the benefits that come with it.
Whether or not the tax base is vital is debatable. It all depends on the type of society and culture you believe to exist. If you believe you have a fairer and larger group of participants, then you may have more opportunities to receive a good salary.
However, if the economy is controlled by the state, then there is a premium that is placed on money – while the wage, if any, is more as if you’re a captive for the production of people and items.
For the majority of people, this may not have a detrimental effect on the economy, as their social and economic system is kept stable by the market.
We are creatures of necessity and, for the purpose of maximizing economic growth, there is nothing wrong with capitalism. However, the reality is that capitalism may have brought us to the position we’re in now, which is not a place we should be in.