A Capitalist Economy vs Socialist Economy Essay -- Capitalist Economic

A Capitalist Economy vs Socialist Economy There are a variety of economic systems today, which can influence how prosperous we will be as individuals or as a group. Socialism is an economic system where the government will be greatly involved in the economy. In a socialist economy the government can control many industries, provide public institutions such as health care and education, and equalize incomes of the population. A socialist economy is one of low unemployment and stability, where the government sets production quotas and price regulation upon their perception of the needs of the economy. On the other hand, a capitalistic economy is an economic system where there is a very limited amount of government involvement. The capitalistic economy is based on the demand of consumers and the supply of producers. There is a great advantage of living in a nation where there is a low amount of government intervention in the economy, because government intervention reduces the freedom of markets, causes a slow growing economy, and exploits the consumers in the economy. Firstly, high government intervention reduces the freedom of the markets. When the government controls an economy, the population is taxed in order to fund national programs. Taxing the consumers of the economy will reduce the personal spending, therefore causing the economy to grow in areas of public service such as education and health care instead of technology and fashion. Furthermore, the industries in a social economy are directed by quotas, which is production targets set by the government. The quotas don’t often represent the need in the economy, therefore causing a surplus or a deficit of products, which leads to small profits.... ...ions placed on industries in a social economy will affect the price, variety, and quality of products produced in their economy. In conclusion, there is a great advantage of living in a nation where there is a low amount of government intervention in the economy, because government intervention reduces the freedom of markets, causes a slow growing economy, and exploits the consumers in the economy. Capitalism provides a marketplace where industries compete in order attract more consumers, therefore providing more efficient, qualitative and plenty of variety for consumers. This efficiency, quality, and variety will help the economy grow in whatever way it wants to, making capitalism the most flexible economic systems. The nature of human beings is, one is satisfied, when he/she has provided the necessities for himself first, then the people around him.