Question

Compare the economic systems described in Chapter 22 of the text. Evaluate the most attractive feature and least attractive feature of capitalism. Next, do the same for socialism.

Answer 1

Since capitalism is characterized by private ownership of property, it's most attractive feature-

Capitalism allows individuals choice both in commodity purchase and employment opportunities. It allows resources to be distributed according to consumer choice rearing the market in a more productive consumer friendly range.

Least attractive feature-

As dominance within the economy is formed by the elite few, wealth is recycled in this small percentage who has gained a monopoly through limited Government control. This normally occurs through construction of rules that limit the flexibility of the money flow between classes. Leading to exploitation in labor resulting in revolt and strike within the market negatively affecting the entire economy by halting and disrupting production.

Socialism.

Most attractive feature--

In a social economy, there is less inequality of income as compared to capitalist economy because of the absence of private ownership of means of production. In socialisteconomic system every one works hard and paid as per his skills & ability.

Least attractive feature-

Elimination of Individualism

There are many disadvantages of socialism but first come in my mind is the lack of economic freedom. In socialist economic system everything is controlled by a centralized body. Individuals are not allowed to own any assets, everything belongs to the state. Workers are assigned specific jobs and are not allowed to change them without consent from the planning authority.