ESSAY

Analyze socialism and capitalism in relation with the Philippine society. Which of these economic
systems would work in our country?

 MIXED ECONOMY ( Capitalism and Socialism)

Capitalism is a free market-driven economy, the market forces itself shapes the society
and life of people in the society. In capitalist economy, the  property and businesses are owned
and controlled by individuals. The production and prices of goods and services are determined
by how in-demand they are and how difficult they are to produce (supply). The free-market
conditions to drive innovation and wealth creation of each person to have the freedom of choice
in attaining self-actualization.
In socialism economy, the Government has control in the production of goods and
services in the economy. Its primary concern is to redistribute wealth and resources from the rich
to the poor, out of fairness and to ensure an equal opportunity and outcome for all people in the
society especially in the field of education, health care, economy etc.
Through capitalism, people have the freedom to strive hard in improving their lives by
themselves. People have strong incentives to work hard, increase efficiency and be a productive
individual which contributes to the acceleration of economic growth of a nation. Nevertheless,
Government must also intervene and control the economy in order to prevent individual or
company from having a monopolistic stance of economic power specifically in time of natural
disasters. It will results shortage of supply and the price would be high which makes the
consumers cannot afford the products. The government has the power to set the price of goods
and products to a reasonable price for the people.
There are good and bad things about both capitalism and socialism, we just need to strike
the right balance to make them both work in our economy. Resources must be owned by the state
and individuals for better development and improvement of the society.