CvS - Capitalism Vs Socialism Windy Pierre ECO2023...

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Capitalism Vs Socialism Windy Pierre July 21, 2010 ECO2023 Capitalism Vs Socialism Capitalism Vs Socialism the pro and con of their economic system and which one is more effective in our economic. For many years economist and politicos have been talked about Capitalism Vs Socialism. Which one is a better economic system? Before we begin we have to get all the facts. What is capitalism? 1 Capitalism is a social system based on the principle of individual rights. The term capitalism is used here in the broader philosophical political sense, and not in the narrower economic sense, i.e. a free-market. If capitalism is a free market then Adam Smith was the first capitalist. In fact, profit is considered "the essence of capitalism," and the pursuit and realization of profit are absolutely essential to the entire capitalist concept "Capitalism". Profit is simply the difference between the cost of making or obtaining a product and the money obtained from selling it "Capitalism". Although capitalism makes for a richer and freer society overall, it does not guarantee a certain income for every citizen, as the socialist societies do. For this it has been criticized by some as an ideology that only benefits the wealthy. Two great writers felt differently and eloquently expressed their perspectives. Adam Smith, in Wealth of Nations says: By pursuing his own interest an individual frequently promotes that of society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the common good "Capitalism". He believes in the invisible hand system. 1 Capitalism Vs Socialism Page 1
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Capitalism Vs Socialism What is a capitalist? 2 An advocate of laissez-faire is known as a capitalist, i.e., novelist Ayn Rand is a capitalist; i.e., though economically Engels came from a wealthy background, politically he is recognized as a socialist/communist because of his ideas. The dictionaries have a different definition for it. 3 Capitalist is a person who has capital especially invested in business. 4 Capitalism is the world’s dominant economic system. Within it, the means of production and distribution are owned by individuals: private ownership and free enterprise are believed to lead to more efficiency, lower prices, better products and rising prosperity. This is what the wealth of nations was talking about freedom to create, build and developed. America was built on capitalism our four fathers fought for this. The U.S. has only been a country for 232 years, and has become a superpower. One huge reason is because of the great freedom, but capitalism has definitely helped. The GDP of the U.S. far exceeds that of any other individual country. All the developed nations are capitalist nations. 5
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This note was uploaded on 03/10/2012 for the course BUSINESS 201 taught by Professor Chess during the Spring '12 term at Miami Dade College, Miami.

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CvS - Capitalism Vs Socialism Windy Pierre ECO2023...

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