Socialism vs. Capitalism - Comparison Essay Example

Published: 2022-02-28
Socialism vs. Capitalism - Comparison Essay Example
Type of paper:  Essay
Categories:  Capitalism Economics
Pages: 3
Wordcount: 590 words
5 min read

There exist numerous economic systems across the world. Some countries follow the socialist policies while others follow capitalist policies. Both policies are used in a bid to ensure economic growth of a country and maintain proper welfare for every citizen. The socialist system of running an economy proposes measures where everybody enjoys a similar lifestyle so as to ensure proper livelihoods. On the other hand, capitalist policies propose measures which allow people to be as rich or as poor as they can surely get. There is the freedom to choose what wants. The socialist system presents a very fair way of living since it bridges the gap between the rich and the poor and enables everyone to enjoy a decent life. However, this economic system can also be attributed to a lot of poverty cycle in socialist regimes. Therefore, the capitalist system is more preferred since it offers a certain level of surety in growth in terms of the economy.

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Capitalism offers consumers the right to choose what to consume. On the other hand, the socialist regime does not provide such a choice (Chuck 27). When there is a choice on the side of the customer, then it is possible for the economy to grow. This will take place because everyone will desire their products to get bought. The ripple effect of such a phenomenon is that the general quality of products rises. Additionally, sellers may also reduce prices to ensure that their products get bought. The high level of competition in capitalist nations due to differing consumer wants is a great contributor to economic growth because businesses will tend to provide preferable services so as to poach for the right clients and make more profit.

It has often been said in political circles that money is power. This is completely accurate due to the fact that in capital states where people have the liberty of making as much money as they want there is also political liberty (Chuck 21). The phenomenon of people having their own money and owning property gives them a voice against oppressive capitalist regimes. This so happens because the leaders are not the only people with money. However, this is not the case with socialist regimes. In Socialist regimes, people only get to enjoy the bare minimum since everybody has to get food. As such, people tend to lose their voice since they do not have options. Taking a view on this, capitalism still wins because it gives the people their strength back.

Socialism also bears the advantage that it promotes equity. This implies that everybody has the opportunity to get all the basic amenities they need for life (Chuck 53). Capitalist economies have very many poor people. The gap between the rich and the poor is very wide since one got the opportunity to get very rich while the other lacked the same opportunity. However, in socialist regimes, everyone bears the responsibility of another person. This implies that there is a reduced number of people who are too poor to afford the basic needs of life.


Socialism is an appropriate economic model. This is because it majorly offers equity to the citizens of a country. However, it promotes stagnation in that places controls on people to imply that they cannot go beyond a particular point. Capitalist regimes offer one a level ground for a competition where can grow their skills.

Works Cited

Chuck, Goodwin. "Goodwin, Chuck. "Point: Capitalism is Still the Best Economic Alternative." Points of View: Capitalism vs. Socialism." Points of View Reference Center. (2009). Document.

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