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Comparison Of Socialism And Communism

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Economic freedom is the right of every individual to work for and invest their money in any way they choose with minimal interference from the government. It allows each person to produce and consume products of their choosing while the government permits labour, capital, and goods to move freely. In essence, economic freedom aims to benefit both individuals and the society as a whole. Although economic freedom is an ideal every country strives for, there have been many perverse economic systems in which the quest to achieve complete economic freedom has only created a greater divide between the rich and the poor. One such system is socialism. Socialism strives to bridge the gap between the upper class and the lower class of citizens; however, …show more content…

The first flawed proposition is the idea that everyone, regardless of their career or social standing, should live in similarly valued houses and own the same amount of property. In a community where everyone recognizes that they'll never be able to increase or decrease the value of the property they own, they are more likely to neglect their land. This would essentially devalue the property, but the person that suffers the most is the next person to inherit the land. The next owner would have to put money into the property even though they will never profit from their renovations; thus, these people lose the little money they started with. In addition, no one can purchase multiple portions of land to build on or rent out. As a result, there is no opportunity to increase one's income or savings account. Aside from individuals losing money through the lack of real estate ventures, the entire society is likely to lose money in the long run. A successful community boasts a variety of shops, restaurants, and services that bring in revenue. However, these businesses are only successful when they have motivated people running them. Most people are motivated by money or the idea that they can make a name for themselves which is what inspires them to work hard and be successful. Unfortunately, socialism and communism eliminate all rewards for succeeding in professional endeavours, and business in the community suffers because of it. Subsequently, the society takes in less money from surrounding areas which is detrimental to the economy and further lowers the amount of money the individuals of the society take in. In essence, the ideologies associated with socialism and communism ultimately reduce the financial worth

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Socialists believe that tremendous inequality results from the functions of society, not the faults of individuals. To alleviate societal disadvantages, socialists believe the state should be the sole power in determining the distribution of goods and services. Grinnell College should centralize organizational power to move toward socialism. Under socialism, Grinnell would take in and distribute only as many resources as students need. The college would charge a standard tuition to pay only for the institution’s necessities.

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212 Words | 1 Pages

Society as a whole is more and more splitting up into two great classes directly facing each other: Bourgeoisie and Proletariat” (Marx, Engels, 1888, p.80) Marx had identified that the proletariat and the bourgeoisie had both different and opposing objectives. He concluded that the bourgeoisie oppressed the proletariat in their desire to create surplus value through control of the mode of production. In order to generate profit, the ‘oppressive’ employers attack the ‘oppressed’ workers by keeping wages low in order to reduce deficit. This is an example of how class conflict is created, as the proletariat’s objective to earn a sustainable wage is severely affected by the bourgeoisie’s need for surplus value.

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1509 Words | 7 Pages

Democratic socialism is starting to cause a ruckus in the American political system, but this misunderstood political philosophy often times faces the greatest of criticisms. Democratic socialism is an ideology that takes its root in the work of political revolutionaries that grew tired of the exploitation of the working class such as, Karl Marx and Friedrch Engels. Its relationship with the aforementioned revolutionaries often causes many to relate democratic socialism with communism and other failed political ideologies that the United States has historically opposed. While many believe that democratic socialism is a direct attack on the capitalistic foundation the U.S. was built upon, it is far from it. As a new generation of voters arises

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1097 Words | 5 Pages

Since the housing crash there have been a number of articles and talking heads lamenting homeownership. The opinion is that it's just not a good investment anymore and for some people homeownership is just not in their best interests. Let's look at this from a long term prospective. Owning a home adds pride for the home owner as well as the neighborhood. You can drive down most streets in most any neighborhood and tell which homes are rented and which are owned by the people living there.

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1749 Words | 7 Pages

A large amount of people argue that a system such as socialism could fix that inequality. Socialism is a political and economic theory that centralizes the government and distributes wealth and jobs in order to form a social society (Evangelopoulos). Many economists and politicians have debated the

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846 Words | 4 Pages

Well, for starters, people need to work! Not only that but if all are working but only some are benefiting (which does happen in capitalistic societies), then eventually the inequality between the classes will become glaringly obvious and cause problems! Not only that but when only a few rich and powerful people control the markets, that can threaten the sanctity of democracy (Purdy). Socialism fixes all of these problems by eliminating the one man who controls everything and giving the power back to those who

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450 Words | 2 Pages

If someone asks a modern American citizen that lives in New York: “which do you think is the best economic system, communism or capitalism?” , he/she would probably answer: “Capitalism”. Truth be told, Capitalism gives us everything we need, cars, food, clothes, all-type of services. At first sight, advantages are the only thing we can see, however, flaws also exist. George Orwell understood that despite the benefits there is a big problem: Since the goal is to profit more and more, the capital owners will always try to get richer, giving the opportunity to the poor to get poorer.

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This is an economic system that operates in five main sectors. It gives people the power to choose their own businesses, the right to own private property, earn profit, compete with others and consumer sovereignty. This aspect of liberty is very important since it prevents the country from tyranny. Thomas Jefferson believed that free enterprise is a “natural right to the American”. It promotes competition among people, and protects them from it by imposing regulations against other foreign nations.

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We live in a society that is unable to draw an image of the world without social classes. The contrasts in our environment are easily spotted out, ranging from physical attributes to bank accounts. It has been like that in the United States, since our early beginnings. Capitalism has ruled our government and implemented classes, which we think are acceptable, but in reality, may create more harm than good in the long run. Our government has kept us in the cave of capitalism, and we have maintained in it whilst thinking of communism as a barbaric form of government.

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732 Words | 3 Pages

If all the means of production are under government control there is no possibility of a person being richer and therefore superior than another. To do this a supreme or group of supreme leaders has to be established, that will control almost of every aspect of its citizens lives including religion, education, and marriage. The problem with communism is that everyone has to be communist or the society will not work, there cannot be someone who opposes this rule of government or the whole system would be out of balanced. In an ideal communist society again like in socialism everyone would have their basic needs cover and there would be no real dispute over the wealth. Everyone would have access to education and even healthcare.

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732 Words | 3 Pages

Definition of Capitalism What is capitalism? According to Adam Smith, both parties in a capitalist system, the buyer and the seller, act in a voluntary transaction to achieve the outcome that serves their self-interest. However, both parties cannot obtain what they want without delivering the needs of the other. In definition, capitalism is an economic system where properties can be controlled and owned by private sectors to suit their interest, which is to gain profits, while the demand and supply of goods and services set the market prices to serve the interest of the society.

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2091 Words | 9 Pages

Individuals within the society invest their funds in the economy in order to generate money. The main objective of capitalism is to make a profit for the owners, which are private individuals. This economic system differs from others with regard to the fact that there is no government intervention, the term used is Laissez-faire, meaning individuals are free to determine what products to produce, to whom these products will be sold to as well as the pricing of these products. (Scott, 2009).

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400 Words | 2 Pages

Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. Throughout history, socialism and capitalism have helped great each other and have also been able to create a mixture between each other. The United States is believed to be a mixture of socialism and capitalism. I believe that the two systems create a mixture of each other. The debates between socialism and capitalism are about economic equality and the role the government plays in the situation.

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1010 Words | 5 Pages

“I would rather be exposed to the inconveniences attending too much liberty than those attending too small a degree of it”. -Thomas Jefferson The role of the government in economic freedom should be mostly legislation, consisting of law enforcement and legal structure which gives protection of property rights of owners and implement depositions equally. The five areas in which a country needs to focus on are: Size of government: As the government grows it has the ability to encroach on the taxable citizens thus preventing them from engage in free trade and reap the benefits of their hard work. This can be curtailed by taxing and spending government money. Sound Money: The government should curtail country’s inflation.

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1024 Words | 5 Pages

In addition, economic freedom ensures to an extent where the market is influenced by the consumer demands and choices which make up the supply and demand trends that we view in a capitalist economy. Thus, a capitalist economy is where individuals purchase certain products that indicate the preference and demand for the public. Therefore, economic freedom in a free market, entrepreneurs and for a business would mean that there are no barriers in trade such as, the import and export, and also that customers would not be obliged to pay taxes on their purchases however, for some conditions that may be applied. As a result, just because economic freedom gives an individual the right to do whatever they desire, in a free market economy, economic freedom overall does not guarantee or result an individual to have an effective quality of life. For example, there can be certain situations where there can be economic disparity which is the difference or gap between the rich and the poor and this division can have a negative impact on those individuals who are less wealthier, because they can become even more poor whereas the richer class can become even more wealthy.

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