Question

What do you think of the socialism vs capitalism in the global divide?

please make it long

Answer 1

Both socialism and capitalism were the market structures existed in the world. There are different factors which divide both these system in real sense. Capitalism gives emphasis over the private sector production and market mechanism over the government intervention. On the other hand socialism shows the importance of government intervention the economic and other social sections. The major feature which shows the difference is the government role. There is hegemony of private sectors that functioned for profit maximisation can be seen in the capitalist system. The income distribution was based on market forces and the prices were determined on the basis of the supply and demand in the market conditions. Most of the firms in the capitalist system were tried to cut the costs with respect to market incentives. High level of inequality, market failure and monopoly are the major problems occurred in the capitalist system. US is one of the most developed country in the world followed this capitalist form of economic principles.
On the other hand, socialism followed government rules are followed in every perspective of the country. There is a redistribution of income was possible in the economy. Most of the market principles and the prices were controlled by the government itself. There is a lack of fewer incentives for government owned firms shows the inefficiency of the firms and the economy. High rate of taxes with respect to higher spending on public services was also one of the feature of the economy. The government enterprises will promote the inequality and tried to overcome the market failure existed in the economy. Chinese economy followed this kind of market system.