Blog post #5 – Inquiry research round #3 – Are we just a statistic in our Capitalist society?

Capitalism and socialism are two main economic systems used around the world.

The main difference between capitalism and socialism is the extent to which the government controls the economy. Capitalism allows for private enterprises to have more control over the economy and that society is better of when the distribution of wealth is determined by a freely operating market.[3] However, Socialist governments aim to promote economic equality by regulating businesses and providing programs that help the poor.[2] For example, free education and healthcare. [3]

In capitalism, private individuals own and control businesses, property and their investments. It thrives of the system of supply and demand. Supply refers to how much product can be made, and demand refers to how much of that product consumers are willing to purchase at a certain price.[2] This encourages businesses to make quality products as efficiently and inexpensively as possible.

Socialism is an economic system under which the means of production are owned equally by everyone in society. In some Socialist economies the government owns and controls major businesses and industries.[1] In others, individual ownership of business and property is allowed, but with high taxes to help pay for social programs that serve the common good.

This shows that it is typically the wealthy that benefit from capitalism, and socialism for the poor since it is based on public benefit.[1]

[1] https://courses.lumenlearning.com/suny-internationalbusiness/chapter/reading-the-benefits-of-socialism/

[2] https://www.investopedia.com/articles/personal-finance/082415/pros-and-cons-capitalist-vs-socialist-economies.asp

[3] https://www.economicshelp.org/blog/147271/economics/pros-and-cons-of-socialism/