Capitalism and Socialism (Essay Sample)

Capitalism and Socialism
Name
Institution
Introduction
Capitalism and socialism are the main ideologies that human beings= in the current societies are concerned with but the two ideologies still have both the differences and the similarities. The Elite though do not care about any of the ideologies and they tend to support any of them since they believe that any collective system governs and gives them power. They therefore support all the ideologies; Communism, Socialism, Fascism, Monarchies and Dictators. Provided any of the powers is consolidated, the elite will support it and the only threat is the United States of America since it has a no income tax, division of labor, no central bank and it has no Elitist class. This has therefore raised question on the similarities between communism and capitalism and the effect the current life has been subjected to basing on the respective economic system.
Similarities between capitalism and socialism
Capitalism and socialism are two different ideologies but they are similar in the way they are supposed to run and work. The power in the two ideologies is equally shared and the parties involved are entitled to equal ruling and governing in the two economic systems. This shows that the level of economic control is equal in the two powers and two parties are equally involved. The other similarity is that everybody should earn or get out what they offer or put in meaning that the input should equal the output and the two powers remains exact opposites.
Difference between Capitalism and Socialism
In terms of equity, capitalism has no concern on it and bases its argument in the ground that inequality is essential in the society as it promotes economic innovation and economic development. On the other hand, socialism is concerned with redistribution of economic resources from the wealthy class to the poor to ensure that each and every individual is entitled to equal opportunities and equal outcomes.
The second difference is the ownership. Capitalism sticks to the perception that private businesses are owned by private individuals. Socialism disagrees with this in that the state will own and take control over the major means of production.
In addition, capitalist economy has it that returns and profit incentive promotes organizations and firms to b more efficient in cutting down the cost and innovating new products. Socialist economy on the other argues that national or state ownership brings about production inefficiency because managers and workers lack incentive to cut down the cost of production.
Lastly is in terms of price control. In capitalist economy, prices are evaluated by market forces and monopolist mar...