Captialism vs. Socialism
...to society. While the two economic systems, Capitalism and Socialism have different economic, political and social views they do have one common similarity. The similarity is both systems claim to Egalitarian. As an egalitarian society, all members of society are regarded in some sense as equals and each system is designed to promote that equality. The most determining factor regulating this egalitarianism is the free market. Capitalism supports the free market economy advocating the invisible hand in the market. Supporters like Smith believe that if the economy is let alone it will provide the best for the economy and society as a whole. Socialists, such as Marx takes the opposing view, advocating government intervention into the economy. The function of the state as a mediator in the economy will provide the best results in economic political and social aspects. So the debating question is “Does a free market promote equality”? Adam Smith’s view In order for all aspects of society to prosper I feel economic freedom is necessary. The invisible hand is able to solely control the market. Let people handle their own economic affairs in their own way. The best possible economic results are obtained when individuals and business enterprises alike are allowed to compete and bargain freely, each fighting for its own private self-interest. The competition tends to drives prices toward natural prices and causes manufacturers to produce better products. Competition is also good among the workers by producing more skills and working harder. Division of Labor also allows efficiency in the market. Dividing labor means that certain individuals, who are better and more skilled at making specific products, will work at that production. This focus on individuals work has shown an increase in production and efficiency. I see inequality as a function of individuality. Equality is having equal rights to compete freely for an economic advantage. Thus I advocate that Capitalism supports Equality-Equality of Opportunity. Our system of Capitalism allows individuals to be mobile within the stratification system, dependent upon on individuals ability to labor and apply themselves. But as individuals pursue their own self-interest they are pursuing the good for the society as whole. Hence self-interest is not a necessary evil but a positive force for good. Therefore the less government or any authority interfering with the private economic competition of individuals the better for everyone. The economy is such a vast and complicated thing no individual, no group, no government can understand it well enough to control its functioning. As I see it, the government has three legitimate functions. The functions of the government include: protection against invasion by outside power, protect individuals from unjust actions of neighbors and build and maintain those public works and public services which are beyond the scope of private enterprises. As I have stated no functions of the government pertain to economic activity. I trust private industries or individuals attempting to act for the public good almost as much as I trust the attempts of the government. “I have never know much good done by those who affected to trade for the public good…by pursuing his own interest {the individual} frequently promoting that of society more effectively than when he really intends to promote it”, I will reiterate again the importance of self-interest in the prosperity of the market. The market can only function well if all the forces of individual self-interest are allowed to compete with another in the greatest possible economic freedom. So in closing, in a capitalist lassiez faire market the production of goods are left to the market, where millions of individuals make decisions based on their own self-interest, the amount of production depends upon private entrepreneurs and how much profit can be made by the entrepreneur. Hence a free market allows society an equality of opportunity, allowing all individuals to focus on their self-interest which ultimately reflects the well being of society as a whole. Karl Marx’s view In my analysis I hold economic forces, including the ongoing and virtually unstoppable progress of technology the determinant course of history. The course is an evolutionary process and it is possible to predict by examining the past and deducing the laws by which that evolution proceeds, where it is leading. Many of my ideas are linked to the development of a new but growing class of industrial workers who suffered the poverty and degradation so often a feature of early industrialization. In my analysis I will first critique Capitalism, as I see it does not provide equality for society. In fact capitalism as it acts in a free market alienates the good proletariat. The proletariat is the laborer who is exploited by the bourgeoisie (also known as the capitalist) who pays the proletariat subsistence wages, by extracting surplus value. The surplus value is the difference the worker receives in wages compared to the value the worker produces. This value is also known as profit, which is motive of all capitalist. In the subordinate relationship with the capitalist, the proletariat is the first to suffer. This is due to the restriction of one particular branch of employment that is exhibited in the division of labor. It becomes very difficult for the proletariat to direct his labor elsewhere when there is a marked division of labor. The division of labor makes the workers unskilled overall resulting in the cycle of exploitation by the capitalist. Seeing this economic deprivation of individuals is primarily a function of the struggle between the classes Proletariat and Bourgeoisie. Class is defined in terms of economic power by the ownership of the “means of production”. In order to destroy this inequality, the classes must be destroyed. As a Socialist I believe equality can be achieved by removing the ownership of the means of production from private hands and placing it in the hands of society as a whole. As reforms can never correct these injustices of capitalism, I propose a move to a new system. The new system will support government intervened economy. The government intervention is necessary to counter the harmful effects of the party struggle. The government supports an equality of outcome, sometimes referred to as a matter of results. This type of equality is based on guaranteed results for all individuals. One method of obtaining this equality is having equal distribution of wealth for all members of society. This distribution is achieved by focusing and sustaining to needs of society instead of the wants of individuals. A government body will be appointed to make all economic decisions and secure economics rights. The rights associated with ownership-the right to use and dispose of property belong to the entire community and expresses the best interest of the entire community. The goods will be produced and exchange more effectively and laborers will be happier and self-fulfilled because they are no longer being exploited and alienated. Individuals will also become more fulfilled once they have recognized their false consciousness. False consciousness is a state ...