Capitalist and Socialist Systems in Our World - Essay Example

Capitalist and Socialist Systems in Our World al Affiliation In most contemporary societies, capitalism and socialism exist together, although they exist in different forms. While private players and a small group of people control resources for their own benefit in a capitalist system, a socialist system is focused on the well-being of all individuals. In other words, in a capitalist system, emphasis on well-being is placed on individuals and private players while in a socialist system emphasis is placed on joint resources to meet the needs of all individuals. This paper gives a description of the characteristics of all socialist and capitalist economies, and also discusses how healthcare systems and a healthcare state distribute resources. Particular emphasis is given to preventive care and its significance; it is focused on evaluating ones current health status when no symptoms of a disease can be seen. However, health care is usually affected by both socialism and capitalism either in terms of competitive advantage or taking on the responsibility of managing national economies. All these are discussed in the paper. Keywords: Capitalism, Socialism, Healthcare, Preventive care, Systems Introduction Capitalist and socialist systems exist together in most contemporary societies, although in different forms. In capitalism, private players and a small group of individuals own and control the creation and circulation of wealth or resources (The Socialist Party of Great Britain, 2006). These individuals are able to attain success without having to work as hard since they are wealthy. In socialism on the other hand, well is properly distributed in an effort to meet the needs of all individuals together (The Socialist Party of Great Britain, 2006). Capitalism versus Socialism According to Hoppe, Socialism and capitalism compare and contrast in various ways (2007). Firstly, they differ in whose will abounds in disagreement. There must be one who controls in capitalism while others have no control. The issue of whose opinion abounds is resolved based on original contract. In socialism, the question of whose opinion abounds is determined through a political process, rather than preceding contract or usership (Hoppe, 2007). They compare since in both, disagreements must occur between controllers and non-controllers. How to achieve coordination is another contrast between socialism and capitalism. Capitalism regulates activities by ensuring that the previous user-ownership is respected, while socialism “coordinates individual plans by superimposing on one person’s or group of person’s…. regardless of prior ownership and mutual exchange agreements” ( Hoppe, 2007, p. 23). Differences in control are another contrast. In capitalism, the owner makes decision on what should be done with the means of production while in a socialized economy, there is no such owner. Categories of Capitalism versus Categories of Socialism Free market capitalism versus market socialism. Free market capitalism is also known as the market economy. In this system, the government has little or no control as all elements of a society are controlled by the market (Ollman, 2014). The only responsibility of the government here is safeguarding the lives and properties of citizens. Ownership requires legal documents of written titles and deeds. In market socialism, public or large corporations are run within a free market. Unlike in market capitalism, the government is largely involved in the systems. It collects profits and distributes them to social services, funds for public institutions and payment of employees. Social-democratic capitalism versus self-managed economies. Social democratic capitalism is also known as social market economy. This system strives to scale the advantages that come with a free market system with a social support structure that is rigid (Berman, n.d.). The government is quite involved in this system as it ensures that the social welfare of individuals is catered for, unemployment remains low, and fair competition abounds, despite the fact that there is a lot of private ownership of industries. In a self-managed economy, groups collective action is considered for effective decision making. State run capitalism versus state directed economies. State run capitalism is an economy where the government owns much of the resources, but for purposes of making profit, things are managed in a capitalistic manner Barrington asserts that “state capitalism involves a greater role for state ownership of economic entities but less of a role in regulation and social welfare protection” (2012, p. 39). In a state directed economies also known as “state socialism” is an economy where industries operate with some direction from the government although ownership is cooperative. Corporate capitalism versus planned economy. Corporate capitalism is a system the economy is controlled by massive bureaucratic corporations. Existing laws usually protect these companies since they have a lot of influence in matters controlled by the government. In a planned economy the resources are owned by the government, which is also responsible for making production plans, profits expected and prices for products. Preventive Care Preventive care aims at evaluating ones current health status when they have no symptoms of a disease (United HealthCare Services, 2011). With preventive care, severe health problems are avoided through prompt diagnosis and treatment. Preventive care can be categorised into primary prevention, which is the prevention of a disease before its occurrence, secondary prevention, which is the prevention of disease progression and tertiary prevention, which aims at reducing the amount of disability caused by a disease (“The Role,” n.d.). According to United HealthCare Services, there are a variety of preventative care services; examples include x-rays, immunizations, physical examinations, and lab work (2011). Based on different factors such as the immediate health condition, health history, gender and age, the doctor is able to determine what health screenings or tests are right. Injuries which are part of preventive care are treated through injections and therapeutic exercises. Additionally, thermal treatment, which involves reduction of inflammation or pain from an injury through reduction or increment of body tissue temperature (ACOEM, 2013). Others include relative rest, operative treatment, Transcutaneous Electrical Nerve Stimulation (TENS) and medication (ACOEM, 2013). The prescribed medication or over-the-counter drugs is an indication of the effort to improve or maintain health. For the treatment of a disease to be successful, the prescription needs to be consistently used as prescribed. For management of chronic diseases such as cancer, hypertension, arthritis, heart disease and diabetes, adherence to therapy is important (PhRMA, 2011). This is because prescription drugs are usually prescribed for the named diseases and strict adherence is vital. According to PhRMA, lack of adherence to the prescription can happen in many ways such as taking fewer doses than what is recommended by a physician, completely forgetting to take medicine prescribed and failure to fill a new prescription (2011). Proper adherence to prescriptions is necessary for reduced costs of healthcare on the part of patients, better health and care. Oral health care is also vital. If not treated, dental diseases can lead to health problems such as nerve or bone damage, loss of tooth, infection spreading to other body parts and may even result to death (American Dental Association, 2014). All the named diseases are preventable. They can be prevented through intake of a balanced diet, regular dental check-ups, daily flossing and brushing and consumption of fluoridated water. Any occurrences’ of tooth decay require attention by a dentist (American Dental Association, 2014). Eyes are critical for day-to-day activities. Eyes should be taken care of for proper eyesight and overall health. There are various ways in which a person can ensure good eyesight. They include getting a complete dilated eye exam, eating healthy, wearing eyewear that protects the eyes when carrying out activities or playing sports, avoiding smoking of cigarettes, wearing sunglasses in the sun, cleaning of hands before removing contact lens, as well as working in a safe environment (CDC, 2013). Healthcare in a Capitalist Economy Many economic resources such as jobs, money and status within the society are distributed by healthcare systems. According to Moran (1995), capitalist industrial states are the states of progressive industrial world. Firstly, this is because they operate in economic systems where there is constant struggle between global and national economic systems, firms and industries for competitive advantage. States can be seen as capitalist because one of their roles is to regulate competition by creating frameworks of security and legislations for sectors and industries. Therefore, competition in the healthcare manufacturing industries is the centre of product innovation. Secondly, the states take on the responsibility of managing national economies in the world of competition, but they carry out their functions in a different way. Integration of the health manufacturing industries and other sectors is quite significant. For instance, pharmaceutical giants mostly from America first begun as pharmaceutical firms, and then diversified their functions into other areas such as fine chemical products and beauty products (Moran, n.d.). It is also important to note that, states are participants in the competition, and not just regulators. They defend their own interest. Mostly their interest lies in them positioning themselves as customers, or institutions that are involved in defending the interests of the health care payers. In fact, there are hardly any advanced capitalist economies, where states, either as institutions or customers, are not direct players; this is because they all need to control charges and ensure that competitiveness remains (Moran, n.d.). Healthcare in a Socialist Economy According to the Socialist Alliance, failure in public health systems can be seen from the limited access to primary health care in regions away from cities and towns (2004). Public hospitals have long overcrowded waiting lists. The principles of socialism affect healthcare in various ways. Firstly, a relative drop in the rate of investment and capital formation is seen in the public health sector. Socialism mainly gives its attention to the consumers, and raises the costs for the employee and as a result, it will have few health workers in the latter roles (Socialist Alliance, 2004). Secondly, socializing healthcare will cause relative impoverishment; that is, the general standard of health will drop as a result of over-utilization of the health facility. The cause of this is because the health facility is not privately owned and therefore, an increase in the services which occur at the expense of the value of capital employed is not avoided. The consumption of capital and the overuse of the capital that already exists will occur. Hence, an increase in capital consumption means relative impoverishment resulting to reduced health services (Socialist Alliance, 2013). In socialism, there is a misallocation of means of production in healthcare. This results to wastes and shortages of resources. Since the private entrepreneurs cannot bid away the means of production from the caretakers, the socialized production systems prevent improvement opportunities in the healthcare sector to go to the full extent as perceived (Socialist Alliance, 2004). Factors to consider in Healthcare Delivery A great deal of health care involves health care workers delivering medical services to patients and much involves creating and marketing products (Moran, n.d.). Patients want health and therefore health facilities make a significant effort to avail the health care services. In health care, there is a strong emphasis to deliver health services. Cost People value their health highly, especially if the health problem is life-threatening. For one to be cured of an illness, he or she is willing to pay any amount. Therefore, if the price of health care goes up and their peoples’ lives are at stake, they are willing to pay for it. They would rather remain bankrupt than neglect their health (Blendon, Leitman, Morrison & Donelan, 1990). Quality In a market where competition is stiff for a healthcare service, every facility wants to offer the best services with most having technologies that are quite advanced. This will indeed improve their ability to get more patients because of their high quality services. Availability A demand for goods or services is what generates the supply. Producers see the demand, so they increase the production (supply). In healthcare, demand and supply work in the opposite direction. The existence of a medical technology has the tendency to generate a demand for its use in medicine, and so its availability. Distribution of health care services Most people feel that basic medical care should be accessible to all regardless of their status. Just like food and shelter are crucial and can be referred to as human rights, health care is also crucial. This is what makes it necessary for everyone to have the means to afford it (Blendon, Leitman, Morrison & Donelan, 1990). This can be accomplished in many ways. They include direct provision of healthcare for everyone by the government, government insurance where only the poor are eligible, doctors or the public giving charity, and the direct provision of hospitals or clinics by the government, to people whose income is below a certain level (Blendon, Leitman, Morrison & Donelan, 1990). Socio-Political Issues surrounding Capitalism and Socialism Capitalism is intended to ensure that resources within the society are promoted so that the needs of the consumer are met in the short run, and the standards of living are raised throughout time. Additionally, rather than trying to balance competitive resources on a given day or season, it gives priority to promoting productivity because of its regulatory nature (Scott, 2006). Capitalism as a social-political economy is an economy where the consumers’ needs are served by competing economic actors according to some rules and regulations that have been set. Political authorities have the supremacy to make major policies and decisions, as well as the power to ensure that they enforce them through various organizations within a given state. Their role is either administrative or entrepreneurial (Scott, 2006). Socialism as socio-political economy can be described as a social system in which there is socialization or nationalization of resources. Socialization of the means of production follows two legal principles which are; firstly, the socialized means of production are socially owned and so nobody owns them. Secondly, no person or persons are allowed to newly in new private ways of production. Conclusion The social-political issues economy has been discussed form two representative systems. In this paper, attention is paid to the two, namely capitalism and socialism. However, to solve issues surrounding these two representative systems, solutions for existing economies have been proposed. The first solution is recognizing that if frameworks within a market are to take societal costs and benefits appropriately, then the political economy must be designed by political authorities. Secondly, the frameworks of market can be attuned in a way that they able to fit in a particular countries’ situation, meaning countries can have strategies based on political prioritization and security, which fit into their own situation. Also, the state should use its power to ensure that the private economic actors who enter the market do not abuse the power granted to them. They must be backed up by state’s coercive powers to ensure that they do not break the rules or even settle disagreements if need be. Lastly, checks and balances should be in place to ensure that the state does not infringe on the civil society’s private share. Reference List American College of Occupational and Environmental Medicine (ACOEM). (2013). Shoulder Injury Medical Treatment Guidelines. 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Understanding Preventive Care. Retrieved from https://benefits.gwu.edu/sites/benefits.gwu.edu/files/downloads/UnderstandingPreventiveCareFAQ.pdf. Read More