FINAL-A COURSE REFLECTION

CAPITALISM VS SOCIALISM
ECON-1010
402-802

Maria Flores Claudio

"It is a pattern of actions that arises among diverse individuals through a process of trial and

error rather than a process of central planning" is the definition of Spontaneous Order, taken

from the video "Spontaneous Order" by Prof. Art Carden

If we transfer this definition to the existing economic systems, we could say that the world has

experienced these trial-and-error patterns since the economy existed, however today as a citizen

it makes me understand that we are living in a new era. and that the trials and errors that have

been experienced with economic systems will serve as a turning point to generate or adapt a new

system that allows us to live as a free, happy, and healthy society, that is, a more humane society.

The main difference between capitalism and socialism is the degree of government intervention

in the economy.

Socialism defends more egalitarian societies, where wealth is distributed among the population,

that is, a more homogeneous society, with two clearly defined social classes: power with wealth

and egalitarian people.

Advantages:

The means of production are publicly owned, so their profits, in theory, go back to society. The

privilege of individual well-being is eliminated, for the general interest and collective well-being.

It is very focused on concepts such as equality. It is very committed to the working class, and to

the environment.

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Disadvantages:

The suppression of private property, prioritizing the general welfare, inequalities. The cost of

guaranteeing universal access to basic services. The defense of the working class.

The socialist system has been tested by the Soviet Union, China, Bolivia, Cuba, Venezuela and

the Nordic countries: Iceland, Norway, Denmark, Sweden and Finland, the latter with great

success, in which quality of life is paramount. Health, education and individual security is part of

that freedom and human dignity, what we could say are guaranteed civil rights.

China, Finland, Sweden, Denmark, are among the five countries with the best education

worldwide (1). It is true that they have high levels of public spending and a high tax burden,

however they are distinguished by their generous welfare states.

In some countries and at other times, socialism has been combined with fascism, which would be

some of the areas to improve.

A capitalist economic system is characterized by private ownership of goods and businesses. A

capitalist economy relies on free markets to determine the price, income, wealth, and distribution

of goods.

Advantages:

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Productive capacity, free trade. The determination of prices based on supply and demand. Equal

opportunities individual freedom, respect for private property. Promotion of Innovation,

Individual well-being and inequality are privileged.

Disadvantages:

The environment doesn't matter. The supply of basic goods and services to the population is not

prioritized. Abuses and exploitation of workers among others.

Germany, Brazil, the United States, Italy, Japan, among others, have a Capitalist System. All

these countries are among the best evaluated in the world in most areas. But many "advanced

capitalist societies" have considerable government intervention. The government can provide

unemployment benefits and public spending on infrastructure, health care, and education.

The biggest problem that capitalism has brought is inequality where a minority are the rich and

privileged and more than 70% of the world's population lives in poverty.

In the module ten video titled "Why Socialism Will Never Work," Daniel Hannan argues that

capitalism is an economy of progress. We can acquire material things and listen to Beethoven to

have a higher standard of living.

However, to what extent is that true? I don't know if he has lived in other countries where most

people haven't had the privilege of even going to public school.

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How many social problems are there in the world, people who leave their countries to go to

others to work and thus acquire the essentials. Families separated for the same reason. Corrupt

governments, which only come to power to enrich themselves and those who bring them to

power. How many people are addicted to drugs because there are people who need to be rich and

seek profit at all costs. And the planet and natural resources?

We need to preserve the human race, but not with the power of who can do more but turn to see

ourselves as humanity and generate new practices around people, being and acting more like

human beings.

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 Citation

1. https://worldpopulationreview.com/country-rankings/education-rankings-by-country
2. https://www.populationu.com/gen/countries-by-gdp
3. https://www.statista.com/topics/781/poverty/#topicHeader__wrapper
4.