Topic
Capitalism vs. Socialism: Research Outline
Instructions
Compare U.S. capitalistic economy to socialist economy (choose from Russia, Iran, Venezuela, Greece, Uganda, Argentina, or Guatemala) from business perspective. Which system yields greater business formation with proven economic success?
Which system hinders broad-based economic growth? Why?
Discuss how price is determined, incentives, property rights, taxation, global competitiveness, government regulation, economic planning, stability, inflation, UE, per capita GDP. Give economic policy recommendations, counter argument, and defend your recommendations using economic facts from the book.
Answer Preview
In economics, one of the main arguments, particularly in the socialism vs. capitalism discussion, is the responsibility of the government and the economic equality. Socialists deem that economic inequality is not good for the community hence the government has the role for lowering it through programs that main benefit the less fortunate. According to socialists, some of the programs which can greatly benefit the poor include offering free or subsidized healthcare, free public education, and social security for the aged people in addition to that higher taxes are imposed on the rich (Schumpeter, 2013). On the other hand, capitalists deem that the government has failed to utilize economic resources as coherently as the private business organizations do, and thus community is in an advantageous position with free market ascertaining both economic losers and victors.
Word Count: 670