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Assignment 6: Effects of Privatization - Essay Example

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The allies have divided Europe among them in order to be under their control and sovereignty. German was one of these countries. It was divided among four super…
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Assignment 6: Effects of Privatization
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Assignment 6: Effects of Privatization

Download file to see previous pages... Briefly, capitalism can be defined as "[the existence of] private property ownership; individuals and companies are allowed to compete for their own economic gain; and free market forces determine prices of goods and services, " ( InvestorWords1). In other words, the productivity of goods and services are not equally shared by all the people. Moreover, the state in this economical system works as a protector and a supervisor body not an owner or a decision maker, unlike communism, business is a separate entity from the state. This is because communism is "characterized by the collective ownership of property and by the organization of labor for the common advantage of all members. [ Furthermore, the] government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people," (Thefreedictionary, 2009). In other words, communisms prime aim and target is to create a classless society with no private ownership and only public ownership is allowed with the existence of one authoritative party, which is the Communist party, to rule. Unlike capitalism, business is not by all means separate from the state or the government. Therefore, it was impossible for all these ideologies to coexist in one country (Germany) without any conflicts or disputes. As a result to all these circumstances, Germany was divided into Western and Eastern Germany. Eastern Germany was then automatically united with the Eastern Bloc or the Communist Bloc which consisted of the Communist states of Eastern and Central Europe. However, the United States, Britain and France have worked hard to improve and enhance the social and economical levels of its part, Western Germany, in an attempt to reconstruct Germany after the war. Unlike the Soviet Union which did not preserve any plans regarding the ...Download file to see next pagesRead More
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