Nobody downloaded yet

Effects of capitalism and socialism - Essay Example

Comments (0) Cite this document
Effects of capitalism and socialism Introduction Socialism may be described as a form of social ownership and management of the means of production in the economy. The ownership of the means of production may be held by the corporate houses, state, individual citizens or any combination of these factors…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Effects of capitalism and socialism
Read TextPreview

Extract of sample
"Effects of capitalism and socialism"

Download file to see previous pages The system of socialism does not have the objective of accumulation of capital as followed by profit driven entities. The methods of accounting for a system of socialism does not follow financial calculations but is recorded on the basis of physical quantities, labor and time. Capitalism on the other hand is a system of economy where the means of production are owned by the corporate houses and the private businesses. The management of the ownership structure in a capitalist system is based on the production of goods and services for earning of profits. In a system of capitalism, the prices of goods and services are based on the market forces like competition, customer base, etc. The motives of capitalism are based on the accumulation of capital by the ownership structure. The methods of accounting in a capitalist structure in based on financial calculations. Effects: socialism and capitalism The systems of socialism and capitalism in the economy are different from the management of ownership of these two structures. The motives of socialism and capitalism also vary from each other. Due to this, the effects of socialism and capitalism are different from one another. The system of socialism is aimed at production of goods and services solely for the economic conditions of demand. ...
The system of socialism has an effect on the labor wages and rights of the workers. The wages of labor are not reduced below a certain level in socialist economy. The minimum labor wages are sufficient to earn the livelihood in a socialist economy. However, due to absence of competition in the market, the employment level in the market is nor too high. There are a lot of people in the economy who are unemployed. Due to equitable distribution of goods and services in the structure of socialism, the demand of goods and services do not exceed the supply by much. Thus there is very little scope of inflation in a socialist economy. Also the production of goods and services are much lower in order to only meet the minimum demand of the population. Thus the GDP growth rates of the economy are much lower. On the other hand, the capitalism structure is driven by the profit motives. The system of capitalism includes the market forces of competition, labor wages, prices of goods and services for the growth of economy. The ultimate objective of the owners in a capitalist economy is the accumulation of business capital (Jones, 2010). The increase in competition of the market forces leads to increase in the production capacities. The increase in the production capacities and the requirement of labor for increased production gives rise to the employment level in the economy. Thus the availability of more jobs raises the bargaining power of the employers for which the labor wage rates decline in a capitalist economy. However, the rise in liquidity in the economy and shortage of employment among a few sections of the population gives rise to disparity of the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Effects of capitalism and socialism Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Effects of capitalism and socialism Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Effects of Capitalism and Socialism Essay Example | Topics and Well Written Essays - 1000 Words)
Effects of Capitalism and Socialism Essay Example | Topics and Well Written Essays - 1000 Words.
“Effects of Capitalism and Socialism Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Capitalism vs. Socialism
...Capitalism vs. Socialism Capitalism and socialism are two of the prominent economic schools of thoughts prevailing in the world at present. Both are entirely different in principles. The debate of which is best is still going on. Even after decades of introduction, still economists and politicians have different views about capitalism and socialism. This is because of the fact that both capitalism and socialism have advantages and disadvantages. None of them is perfect. However, when we analyze the recent developments happened in the world, we may forced to align more towards capitalism....
4 Pages(1000 words)Essay
Socialism And Capitalism
...?SOCIALISM AND CAPITALISM Introduction Trade, that involves the exchange of goods and services between people and entities, is one of the fundamentalpillars of every economic or political system. Market forces that influence trade involves demand and supply forces as well as regulations imposed by political systems. The level of political influence on market forces distinguishes between economic systems. This paper seeks to discuss the three economic systems, capitalism, socialism, and welfare capitalist. The paper will explore the economies’ productivity, political freedom, and level of economic inequality with the aim of comparing the two systems,...
4 Pages(1000 words)Essay
Differences Between Capitalism and Socialism
...of the society such as health and education and no private ownership is allowed in these fields. The means of production in market socialism whether publicly or privately owned aim to earn profit and thus competition prevails in the economy which ensures quality. A fixed portion of the earned profit is directed towards the society for the provision of basic needs. Such a system effectively addresses the issues created by communism and thus it is successfully being practiced in various regions of the world (Vaizey, 1980). Differences between Capitalism and Socialism The fundamental difference between capitalism and socialism is the...
4 Pages(1000 words)Assignment
Capitalism and Socialism
...Capitalism and Socialism Capitalism and Socialism are two main economic philosophiesthat have dominated the world economic system for many decades (Schnitzer 19). These are two very different economic philosophies whose features tend to contradict each other. Capitalism is a political as well as economic system in which individuals own means of production and the emphasis is placed on competition as a means for personal success and increasing capital (Schumpeter 53). Socialism is an economic and political system in which the government plans and produces resources, and either actively owns or redistributes resources...
3 Pages(750 words)Essay
Capitalism and Socialism
...Capitalism and Socialism Why has been income inequality and wealth inequality been worsening in the US and aroundthe world during the last three decades? Provide evidence of worsening inequality and then discuss the reasons why (including specific actions, policies of governments) . Income inequality can mean distributing income to people on the basis of their social class that is the rich earning more than the poor in a society. Income inequality and wealth inequality has been worsening in the US and around the world in the last three decades. Brooking institutions researched and found out that income inequality in the year 2013 was rising to alarming rates and negatively affected the...
7 Pages(1750 words)Assignment
Capitalism and Socialism
...Capitalism VS socialism Capitalism is the world's most spread economic system. Within it, the production line and distribution are owned, operated and traded by private individuals, business or huge corporations. The general view is that capitalism's free enterprise is more efficient, because there are lower prices, competitive power, better goods are introduced and prosperity is flourishing. Whereas, socialism advocates for collective ownership and administration. The capital goods are in state control. Under socialism the community is believed to accomplish its efficiency through central planning. In Marxist theory...
3 Pages(750 words)Term Paper
Socialism and capitalism
...Socialism and Capitalism Capitalism is the system of the economy that is based on the private and corporate ownership of the production and the distribution of goods. Capitalism has been in existence since the 16th century. Capitalists are people who favor a system that is of free enterprise, which means the, government, should not intervene in the growth of the economy of the nation and individuals who are running the economy. The capitalists say the laws of the demand and supply will ensure that the economy system run efficiently to be able to meet the needs of the people. Capitalism is usually characterized by the competition whereby there is rivalry...
2 Pages(500 words)Essay
Capitalism and Socialism
...Capitalism and Socialism Varieties of capitalism arise from a number of al characteristics that prevailin the developed economies of the globe. Such institutional characteristics include; education and vocational training, industrial relations, inter-firm relations, corporate governance and intra-firm coordination (Soskice & Hall 23). These characteristics differentiate two forms of capitalism, coordinated market economies- CME’s and liberal market economies- LME’s. Aside from differing in their institutional characteristics, these two forms of capitalism differ in certain macroeconomic aspects especially industrial specialization and comparative...
6 Pages(1500 words)Essay
...Capitalism and Socialism. Capitalism and Socialism are diametrically opposed political, economic, and social systems. In a capitalist system, the means of production are owned by private individuals, government intervention is limited and a free-market economy rules. Here, economic freedom is the greatest advantage.  Due to competition, private firms are innovative and efficient, leading to economic expansion and improved living standards. On the other hand, capitalism often leads to economic disparity and monopoly of wealth. The profit motive may cause a tendency towards environmental degradation, unfair pay practices and unsafe working...
1 Pages(250 words)Admission/Application Essay
Capitalism, Socialism, and Keynesian Economics
...was not as effective as he thought it could be. He was not supportive and that meant he would have to push people rather than persuade them to achieve their goals so as to meet their personal needs. Parker did not create a team that had cohesive outcomes enough to meet their needs and remain active members. He was not willing to let Talbot assist Millar even after he offered. Parker exhibited a task-oriented behavior that meant he would assign specific tasks and ensure that all employees follow the rules as stipulated. He should input some people-oriented behaviors to help gain the trust of the employees and receive maximum cooperation from them. Alternatives To handle this case conclusively, there ought to be some...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Effects of capitalism and socialism for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us