Question

Is capitalism the best economic system for the economic well-being of a country? In an essay no less than 600 words, explain your answer.

Answer 1

Answer,When we talk about economic system, generally is talking about Capitalism and Socialism. Capitalism is the economic system benefits for individuals who can own economic resources. On the other hand, Socialism states that economic resources own by citizens as a whole. Under Capitalism, it emphasizes competition for resources which means increasing wealth and developing personal success. While in Socialism, it emphasizes distributing wealth for its citizens for that individuals can meet collective capital.

I do not think there is a right answer to judge which system is good or which is bad. It all depends on a country’s situations.

In the western countries, capitalism is better for them because it makes use of the profit motive, and gives people a strong incentive to work hard, to innovate, and to do other things that increase the economic health of a country. In a capitalist system, companies try hard to give consumers the best possible products at the lowest possible price which means competition are around. Therefore, we know that capitalism ends up making the country as a whole richer and that it gives consumers the best possible deals.

However, I do not believe that Capitalism works for every country. As least, not in China. China has a large population of the world, it is hard to choose Capitalism as its economic system. The starting point of the Chinese economic point is not strong enough compares to the western countries. Moreover, the major fault of Capitalism is that it contributes to economic inequality. In a Capitalist system, some people can become poorer and poorer while others become richer and richer. Only few people holds the large amount of capitals in a country. At its worst, inequality may cause conflict between rich and poor or even destabilize an economy.

In words, which economic system is the best that it depends on a country’s conditions. Capitalism provides a freedom environment which makes its economic grows faster while Socialism provides equal positions for its citizens to participate contribution for the society. Based on the research, some countries mix economic system. For example, The United States is considered to be a capitalist society, but in the social security system, which provides support for people who are unable to work, is socialistic. Sweden is considered by some people to be a socialist country because of its high tax rate and large welfare system, but the majority of industry in the nation is in private hands, which is capitalistic. Therefore, no matter Capitalism or Socialism system, whichever fits a country’s conditions, that is the best economic system for the economic well-being of that country.