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Free Economy Vs Capitalist Economy

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A country’s economy may be of two types, communism or capitalism. A communist economy is one which the businesses are run and controlled by the government and the people paid for their efforts. On the other hand, a capitalist economy is one where the businesses are managed privately. According to Karl Marx, a capitalist economy is usually controlled by democracy while a totalitarian government controls a communist economy. Capitalist economies have been found to excel more than communist economies. For capitalist environments, the citizens are motivated as people get motivation from how hard they work. The government allows people to practice free enterprises and thus focus on improving their lives. The following paper will take a look at the …show more content…

In most private firms, people are paid as they work, whereas communist economies the pay is standard regardless of the hour 's people work. Privately owned businesses give people the motivation to work harder as they are motivated by the pay they get. People hired by the government, on the other hand, do not have motivation as they know that at the close of a given period they will still receive the expected pay. This makes capitalist economies progress more than the communist environment. As such, the government works to translate its economy to capitalism as they know that this will improve the economy drastically.
In capitalist economies, people focus on the progress of their lives rather than the community as a whole. In a community, people have different rates of motivation. Some individuals work on their own without external forces. Such people do not require supervision and thus make excellent business people. On the other hand, some individuals must be supervised for them to produce results. Such people may not be entirely comfortable in capitalist …show more content…

The distinction in classes is due to the various efforts people input in their daily schedules and as such turn different pays at the end of the day. Industrious and creative individuals are those who are likely to form the highest social class, whereas the lazy ones will form the lower social class.
Private investors also control facilities such as education and health. As such, they ensure that they provide the best services they can to the members of the public. The workers providing the services are under strict supervision and therefore ensure that they also provide good services to the public. Usually, these facilities are more of investments and as such provide excellent services.
As much as it benefits particular individuals, capitalism has its benefits. First, people have their freedom to express their talents and invest freely in different businesses. When the enterprises are government controlled, people have limited choices of jobs and thus have to settle for the spaces of employment at their disposal. Rarely do people find jobs in which they can express their talents and abilities. Most people focus on getting a job to sustain themselves rather than doing what they enjoy. Capitalism, on the other hand, encourages creativity and expression of selves. Not only do people work on what they love, but they are also able

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