In today's world we see that capitalism is dominant. It was not always like that, in fact, socialism and communism were the popular choice of governments earlier on. Moves to capitalism were made due to the flaws in capitalism, however this does not mean that capitalism is free of faults and is perfect.
Socialism was all about giving back the wealth of the nation to the people. This meant that all property was owned and managed by the government. However decisions of how, for how and what to produce were made at the center. This lead to dissatisfaction amongst the population as a whole. Also, due to inefficiencies in the production process there were never enough goods to go around.
Capitalism in it's purest form entails all property be owned by private individuals and that there be no government intervention in the market. Here what goods and services will be produced by the market forces of demand and supply. However, capitalism is not a welfare state, wherein those who cannot afford a good/ service will not receive tat good/service. Therefore those in poverty are usually left behind in a capitalist system.
In conclusion, there needs to be a middle ground between these two extremes. In a lot of countires we see the principle of a "mixed economy". This is where capitalism and socialism coexist, therefore creating the perfect blend of private and public property. Together these two systems cancel out their flaws, however they do create new problems.
Socialism was all about giving back the wealth of the nation to the people. This meant that all property was owned and managed by the government. However decisions of how, for how and what to produce were made at the center. This lead to dissatisfaction amongst the population as a whole. Also, due to inefficiencies in the production process there were never enough goods to go around.
Capitalism in it's purest form entails all property be owned by private individuals and that there be no government intervention in the market. Here what goods and services will be produced by the market forces of demand and supply. However, capitalism is not a welfare state, wherein those who cannot afford a good/ service will not receive tat good/service. Therefore those in poverty are usually left behind in a capitalist system.
In conclusion, there needs to be a middle ground between these two extremes. In a lot of countires we see the principle of a "mixed economy". This is where capitalism and socialism coexist, therefore creating the perfect blend of private and public property. Together these two systems cancel out their flaws, however they do create new problems.
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