The Impact Of Socialism And Capitalism On The World Economic System

The impact of socialism and capitalism on the world economic system

Production modes are essential for man since it allows us to do a good job and product. When talking about capitalism, it is understood that it is an economic system of market production based on the market and capital controlled, where human work is even bought in exchange for a subsistence salary. Socialism is characterized by the control by society, organized with all its members, both of the means of production and of the different work forces applied in them.

To understand the importance of capitalism, perhaps we should refer to previous models such as feudalism, without a doubt much more oppressive with labor. In this economic model, the individual worked the lands of the feudal lord in exchange for protection, while at the same time it gave him much of the crops and benefits of the same. Thus, capitalism arises as a renovated model that seeks first of all the freedom of the individual. A model that will try to make the worker’s life a bit more dignified.

With capitalism, people who offer work always do so on the condition of perceiving an economic salary or remuneration and not a protection as in other archaic models. For this and other reasons, for capitalism the term "private property" is essential, since thanks to this private property, the rest of the model elements of the model may exist, such as business freedom or market freedom.

Socialism is one of the most important, consistent and continuous ideologies of the left since it proposes a type of society in which the means of production and resources are in the hands of the people and not only of great capitalists.

Socialism is a political and ideological theory that has as its main objective to aim more and more societies where the means of production are socialized, this means that they are not private property of a single person, where wealth are distributed equally among the different groupsof the same without this generating differences or inequalities. In this sense, socialism raises as an ethical and moral basis of its struggle equality against the privileges of wild capitalism where only those who have power or wealth are saved.

Steve Forbes (2017): "Socialism is immoral because it is oppressor, capitalism is moral since it compares the tastes and needs of society, instead socialism takes it away, it is a teamwork for example: you sell a product and you know that your neighborBuy a certain type of product although he does not like you, you have to sell the product. Socialism is about coercion."

When you have a free market you manage to create jobs that even people knew there were. So that is why socialism fails to function since central planning does not work, people cannot know what will happen in the coming years, however, capitalism manages that people obtain what they want.