Pros and Cons of Capitalism and Socialism Research Paper

Pros and Cons of Capitalism and collectivised economy - Research Paper ExampleCapitalism is the idea whereby the possession of jacket i.e. the means of occupation are usually owned and determined by private individuals with little or almost no interception from the government. The entire world can be considered to be operating under the capitalist formation. According to the Capitalist system a small proportion of the entire worlds population controls the resources of the world. This removes them to dictate their foothold and accumulate and cast up their respective wealth and fortune. Many commentators consider this to be a major flaw of Capitalism. Commentators are of the view that the work classes within the parsimoniousness are negatively exploited as a result of this undue power. Exercising such undue power usually results in Monopolies within the thrift and these monopolies lead to an increased benefit being gained by charging higher prices for different neats and se rvices. Except this, there are other negative aspects of Capitalism which include juridic distribution of wealth amongst the economy whereby some people are favored over others. Proponents supporting the Capitalism system consider the economic system to increase economic growth of a society (Hyman, 2010). Socialism on the other hand is a system that has increased government interception with respect to the use of capital/ resources and the income is distributed amongst the people as desired by the government. Advocates favoring socialism consider the system to be a proper distributor of wealth and income amongst the public/economy. People favoring Socialism are of the view that the system has always led to an equal allocation of responsibilities. The negative aspect of Socialism is the fact that the government intervention may lead to many different factors such as decreased growth, reduced flexibility and unclear price signals. These unclear price signals may non be good enough t o perform economic calculations and predict the uncertain market trends. Socialism has always been pointed out for its budget-constrained attribute. This lack in budgets leads to reduced innovation and growth because of reduced incentive for the people (Hyman, 2010). Economies around the World have always been found to operate under the Socialist economic system. Those economies with a view that they are next the Capitalist economy are merely facing a delusion as there is not a single country in the watercourse era that operates without governments intervention. Karl Marxs idea of socialism was to hand the power to the working class and by means of such power the working class would be able to derive their respective pay scale. According to Karl Marx, the consciousness of the working class would only be altered by a change in their working conditions such as pay scales and for a successful implementation of a proper socialism system the capitalist system should be over-thrown i.e. possession of resources should not be confined to a limited minority (Hyman, 2010). Proponents around the world are of the view that the socialism view has not been properly implemented to gain proper advantages from it. On the contrary, the existing system has led to a chaos within the global economy resulting in different financial and economic issues around the globe. A documentary released by some Greek theorists suggests that the economic system wrongfully portrayed as a socialist system has led to the Greek Financial Crisis. The documentary is known as