Socialism Vs Communism

Throughout history, many economic systems have developed and evolved from people’s lack of satisfaction. Renowned enlightenment thinker, Adam Smith, had ideas of unregulated exchange of goods and services which evolved to become modern day capitalism. Socialism sprouted from the lack of equal distribution of wealth and dissatisfaction of those in poverty during the Industrial Revolution and likewise, communism was developed by Karl Marx because of his witnessing of the injustices and inequality of the different economic and social classes. These three economic systems that remain today all vary in their methods of government intervention, thus having different effects on all citizens of different degrees of wealth. An ongoing debate has occurred

Socialism, unlike capitalism, does not support the free market and supports the idea of the means of production being controlled by the government. Because the exchange of goods is restricted by the government, the natural forces of supply and demand are suppressed, meaning the economy is less capable of growing. Socialism, however, is less extreme than communism, allowing for people to own their own property and have a little variation in wealth. This is slightly better because the government does not have total control over the people, and people still have a slight incentive to earn more money. But, often people rely on the heavy intervention from the government to get aid and are not as productive as they would be in a capitalist society. Also, socialist governments grant people certain privileges such as free education and health care. This is beneficial to the people, but can lead to an increased national

Though these three systems have different advantages and disadvantages, the lack of government intervention causes capitalist economies to be the strongest. With little to no interference from the government, natural forces of supply and demand are present, allowing exchanging of goods and services to frequently occur which contributes to the growth of the economy, competition is not limited, causing companies to become more productive and innovative, and all citizens are encouraged to work hard in order to become wealthy. Although there is inequality amongst the people, capitalism makes personal growth in wealth achievable for all people, and unlike communism or socialism, allows people to earn the lifestyle they desire with hard work. Winston Churchill exemplified this idea through saying, “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of