Please respond to each prompt in at least 100 words. These are thought responses and will require no references, just your thoughts on the prompts.
There are two different types of economic systems. One of them happens to be capitalism. Capitalism is the economic and political system in which a country’s trade and industry are controlled by private owners for profit, instead of the state. That kind of sounds like America to be honest. Capitalism causes a lot a friction whitin the economy itself. It creates inequality and social division. Capitalism also allows large fiems to gain monopoly power and expoit consumers. it does have a view pros, It’s not all cons when it comes to capitalism. One good thing about capitalism is that the consumers are free to choose the products that they desire.
There are also incentives that are given to be rich that encourage innovation. Another economic system is socialism. Socialism is where the workers control the trade, and wealth of the country. Not large firms. There are so many pros for socialism such as every citizen will have access to education and healthcare, it allows for balance in wealth earnings. A few cons are rationing of healthcare and government failure.
Capitalism is operated fro profit, and business people get to make a majority of the decisions for the business. They are owned by individuals with four specific rights; the right to own private property, the right to own a business and keep business profits, the right to freedom of competition, and the right to freedom of choice. All of these play a role in why people are willing to take more of a risk. There are some cons to capitalism- such as businesses are really in it for themselves, and don’t typically set out to help others. This can lead to inequality among business, and the people. Also, firms can gain monopoly.
Socialism is geared more towards social equality. This happens as the government taxes wealthy people and redistributes them to the less fortunate through government program. Some pros to this type of economic system is the free education through college, the free childcare that is available to people, and the free healthcare, which is huge. There is also typically longer vacations, less hours in a work week and more employee benefits. However, there are cons with this type of economic system as well . One being that business owners have less of an incentive, there is less reward for being entrepreneurial. People display less innovation and less invention because there is no personal reward. This system can also lead to a brain drain, because the wealthy people with more pristine jobs tend to leave that type of economic system in search of more personal gain.
As we read, there are pros and cons of both types of economic systems in a government.