Socialism And Capitalism Essay, Research Paper
What is the difference between socialism and capitalism? Is socialism more moral than capitalism? To answer these questions we need to look at both systems and there definitions. Socialism is an economic system in which there is no private property and the state owns all the factors of production. Some characteristics of socialism are the prices are set by the state, all economics decisions are set by state, taxation is often used to redistribute income, and individual risk taking is not allowed. (Miller p.483.) The morality of socialism can be summed up in two different words: envy and self-sacrifice. Socialism is the system, which uses compulsion and the organized violence of the State to expropriate wealth from the producer class for its redistribution to parasitical class. (Thompson p.1.) The most obvious defect of socialism, which we have all heard is that it, encourages laziness. Let?s say no one is lazy; it can be shown that it still hinders progress. If government invests heavily in equipment and suppose technology undergoes rapid change in the next 2 years. The socialist government will have to wait several years before investing again. (Kumar p.1.)
Despite the psychotic hatred of capitalism, it is the only moral and just social system. Capitalism is the only moral system because it requires people to deal with one another as traders- that is a free moral agents trading, selling goods and services on the basis of mutual consent. Capitalism is the only just system because the sole criterion that determines the value of thing exchanged is free, voluntary, universal judgement of the consumer. (Thompson p.1.) Characteristics of Capitalism are private property rights exist, are legal and enforced by government, price is set be supply and demand, and you may take risks. (Miller p.484.)
When comparing socialism and capitalism they are usually based on individual values. (Miller p.485.) Under capitalism, the incentive is to work harder because each producer will receive the total value of his production; the rewards are not shared. Socialism rewards sloth and laziness while capitalism rewards hard work and penalizes sloth. The reason socialist don?t work hard is because they have to share the wealth. Wealth has unlimited growth potential and the fruits of one?s labor should be retained in whole by the producer. Yes there are losers and winners in capitalism. The winners are those who are honest and, industrious, thoughtful, prudent, frugal, responsible, disciplined, and efficient. The loser are those who are shiftless, lazy, imprudent, extravagant, negligent, impractical, and inefficient. (Thompson p.2.)
Statistics show that more people have moved from socialist nations to capitalist nations than reverse. (Miller p.485.) However, people that desire the best of both worlds have found refuge in America. America is no longer a capitalist nation, we are now what they call a mixed economy- that is a system that permits private property, but only at discretion of government planners. We have a little bit of socialism and capitalism. We will not have the return of capitalism until there is a moral revolution in this country. We must rediscover then teach our young the virtues associated with being free and independent citizens. Then and only there will be social justice in America. (Thompson p.3.)
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