Capitalism And Socialism, Advantages And Disadvantages

Capitalism and socialism, advantages and disadvantages

Richard Cantillon and Adam Smith are representative characters in the history of capitalism which states that the State should not regulate trade, since it is believed that it causes inefficiency, that is, the market is self-regulated according to supply and demand. For this system the means of production are privately owned,

Social classes exist according to their relationship with capital: the bourgeois have the means of production, that is, companies and obtain their income in that way, while the working or proletariat class depends on wages.

In capitalism people who strive and have merits can improve their quality of life and get on the social class. Capitalism promotes savings and as a consequence generates investment.

In capitalism, what Marx called surplus value is applied, which is the surplus value between the money the worker perceives for a certain task (salary) and the surplus money that goes to the hands of the capitalist.

Advantage

• Capacity that private capital has to generate wealth through production.
• You can access private property.
• Constantly promotes individual initiative, that is, the initiation of an activity in order to obtain benefits in the future.
• He holds and promotes individual freedoms, such as maintain.
• The nations that have developed strongly with capitalism manage to offer their inhabitants good minimum wages, high unemployment insurance, acceptable levels of health, education, security and entertainment
• The free market for regulated goods and services, mainly, according to the laws of supply and demand, allows the economic and political sincereness of society and access to innumerable objects and services that improve the quality of life of the inhabitants of a nation.

  Wait! Capitalism And Socialism, Advantages And Disadvantages paper is just an example!

  Get an unique paper

• No one is forced to work against his will on something he does not want. New labor forms drastically changed society, facilitating the appearance of modern national states that provided the necessary conditions for the growth and development of capitalism.

Disadvantages

• It does not provide the basic needs of a population, understood as such to health, education, food and housing.
• Accelerate environmental warming
• Allows labor exploitation
• Generates an ambitious and selfish competition to obtain the money.
• Capitalism has failed to meet the needs of the excluded of economic progress
• International financial capitalism has been a great instigator of wars and has shown a high degree of insensitivity against the misery of the peoples.
• The distribution of wealth is not equitable.
• Although the anti-monopolic laws of most developed nations have demonstrated their effectiveness, they fail to prevent the constant tendency of capital towards the monopoly.
• It puts individual freedom, above the rest of human rights.

Socialism and communism

Socialism and communism have Karl Marx, Friedrich Engels and Lenin as main thinkers. In a left -wing economy the State regulates trade and there is no free market. Socialism is characterized by the decrease in social differences through market regularization and putting the means of production under the administration of a central government

Advantage

• Private property of the means of production ends.
• Social classes differences decrease and with them the problems derived from their existence.
• Health and education become a social and not private issue.
• Work is guaranteed for all and there are no unemployed.
• Production meets the basic needs of the population.
• Socialism tends to train the citizen of the future who will live in a society without classes, without wars, without great differences between humans.

Disadvantages

• Business and accumulatory mentalities have to emigrate because there is no place for them.
• Who takes care of this is the State or the party and that creates over time, a group of privileged.
• The State can harden and establish a true dictatorship that seriously limits individual freedoms.

On the other hand, communism states that social classes must be eliminated and therefore the means of production should not be private property. It is important to note that a communist regime does not have a democratic government.

Advantage

• All means of production are owned by workers.
• There are no social classes.
• No worker will have economic or financial needs.

Disadvantages

• Only a communist system is possible through a violent revolution, since entrepreneurs and capitalists would not allow to detach themselves from their gain or their properties.
• There is no free trade market.
• Historical failure.

Karl Marx

The value theory

For Marx, the value of an object was determined by its manufacturing time. This Marx theory argues that an object is worth more than another object. But he doesn’t talk about a price, but about the value of things. This value is determined by the time that this object has delayed in its manufacture. For example;The value of a chair is determined by the time that took the manufacturer to build the same. But you also have to take into account the time that took the lumberjack to cut the wood, manufacture the nails or any other material that will be used for its elaboration.

Conclusions

• There are no perfect economic systems both the left and the right have disadvantages and advantages.
• Capitalism despite accelerating economic, technological and scientific development continues to represent a form of exploitation.