Capitalism Is An Economic System Based On Government Or...

Socialism is an economic system based on government or public control production. In such a system the government chooses what is produced as well as the quantity, regardless on the demand. Socialism focuses on equality rather than value, and rewards the workers by the amount of time they put in rather than by the amount or value they produce. It also makes the people rely on the state for everything from housing, food and health care. China, Vietnam, North Korea, Venezuela, Greece and Cuba are the best examples of socialist countries. The most notable use and collapse of socialism was with the former U.S.S.R. Capitalism is an economic system based on a price, profit and private property rights. Capitalism is profit driven. Capitalism utilizes the free market to determine how much of a product is made and allow the price to be determined by the demand for the product. Workers are paid for the value they bring and the demand for their skill set. The capitalist system is based on scarcity. The harder a resource is to get and more greater demand for it will drive up its price. Socialism is based on bureaucratic centralized planning and collective ownership. Believers of socialism propose that it creates equality and provides economic security and that capitalism is an inferior system that exploits workers for the benefit of the wealthy owners. Critics of socialism believe that it is based on faulty principles and ignores people’s nature and the power of incentives. SocialismShow MoreRelatedCapitalism, Socialism, And Participatory Economics930 Words   |  4 Pagesthree alternative forms of property ownership: capitalism, socialism, and participatory economics. Capitalism is a social system based on the principle of individual rights. Politically, it is the system of laissez-faire, meaning freedom. 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