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A Comparison Between Socialism And Capitalism Economics Essay
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Socialism and capitalism are slightly opposing scenarios in the world of economics. Despite their nature, they have been used in different settings by different people across the globe. The main arguments in the debate between socialism and capitalism are mainly on the subject of economic equality and the part played by the government in realizing either of the two. The proponents of socialism believe that economic inequality reflects a bad society and the
federal government should take full responsibility for
seeing such a reduction through programs that are aimed at lifting the livings standards of the poor. Therefore, socialists would advocate for free and good education for the public. Other programs that socialists feel are important to propagate
their agenda is making sure that there
is subsidized healthcare or
absolutely free healthcare services, high taxes imposed on the rich and offering security to the elderly in the society among other issues.
The political and economic world has always been dependent on each other, not one can survive without the other and the world cannot function without both. Countries have been competing in finding the best economic and political combination that brings their countries into the power they need to lead the world.
All the same, it has been found out that all developed nations have some programs that embrace socialism. While these two different economies exist with different advantages and disadvantages, they have defined various markets both in the
developing and developed worlds.
First Europe has always conquered the world history by strong military power based, the power of the church and lack of freedoms for the people, as things developed and the two world wars ended, the political world as we know it ended as well; Europe is no longer in charge of the world, as new ideologies started to show, United States of America began developing into a world power, Russia adopted the communist approach of the world, and began collecting countries under their union.
One of the biggest economies in the world, the United States is considered capitalistic. It is a scenario of everybody for himself. On the other hand, such democracies as those of Western Europe and Scandinavia are mainly termed as socialist.
Capitalism evolved with Adam Smith and got adopted by the United States; Faced by the communist USSR (Union of Soviet Socialist Republics) led by Russia. During their cold war and the fight to show which political economic theory is better, capitalism won the first round, USSR was demolished, Capitalism invaded the world for the past 20 years, and to our surprise after believing for so long, that we finally reached the perfect political economy theory, Capitalism collapses in 2008 and showed the world how vulnerable this theory is, at the same time, theres certain economists who have always predicted the collapse of the financial system and the world economy, promoting the collapse of the political economic theories, and they are the Austrian economists lead by Fredrick Hayek and Robert Vin Misis. Although there have been a lot of scenarios for these political economies, a comparison and contrast of Socialism (communism), and the Free-Market system (Capitalism) will be the main focus of my study to find the best mix of theories that can provide the world with a stable, consistent and developing economic theory that will leave the world better off.
Unlike socialism, capitalism takes a path that is almost the exact opposite of what socialists believe in. There is a belief in capitalism that the government does not effectively make use of the resources it has for the welfare of the public. The implementation of programs by the government from the capitalists’ eyes is flawed. Therefore, capitalists believe that private enterprises are best to work with to ensure the welfare of all. In the circles of capitalism, the society can function
much better through the existence of a free market that determines
the losers and winners in the economy.
Socialism according to Marxian system who is the founders of this theory is Socialism, a set of relations of production that will follow capitalism, contains some vestiges of capitalism. One of the chief characteristics of capitalism is that the means of production, capital, are not owned or controlled by the proletariat.
On the other hand, socialism is about from everyone based on their ability and to each based on the contribution they make. The focus is on profit being shared among the workforce and the society at large to complement individual
salaries and wages.
The major change that occurs in the transition from capitalism to socialism is that the expropriators are expropriatedthe proletariat now owns the means of production. However, under socialism, a remaining vestige of capitalism is that economic activity is still basically organized through the use of incentive systems: rewards must still be given in order to induce people to labor.
In order to debate between Capitalism and Socialism, it is necessary to understand what the differences, advantages, and disadvantages are of both systems. Basically, Capitalism advocates private property, and that society does better
when an individual can purchase and produce as they see fit. Socialism, in essence, is the theory that property ownership should reside in the hands of the government, and that the government can do more with the assets than individuals can.
(Karl Marx, 1991)
On the other hand capitalism that was found by Adam Smith its defined as capitalism is a social system based on private ownership of the means of production. It is characterized by the pursuit of material self-interest under freedom and it rests on a foundation of the cultural influence of reason.
There are advantages under capitalism. The individual's pursuits of his own economic self-interest simultaneously benefits the economic self-interests of all others in the society. In allowing each individual to act unhampered by government regulations, capitalism causes wealth to be created in the most efficient manner possible which ultimately raises the standard of living, increases the economic opportunities, and makes available a growing supply of products for everyone. The free-market operates in such a way
so that as one man creates more wealth for himself, he simultaneously creates more wealth and opportunities for everyone else, which means that as the rich become richer
, the even poor become richer. Capitalism serves the economic self-interests of everyone, including non-capitalists in the society. Accelerated economic growth, prosperity and rapid progress in science and technology
are all benefits of Capitalism. Capitalism naturally divides into certain stratas, but they will be much less authoritative than in a centralized government as under Socialism. More people will have access to wealth which means more power. Capitalism does not command people how to use
their power or wealth.
Based on its foundations and essential nature, capitalism is further characterized by saving and capital accumulation, exchange and money, financial self-interest and the profit motive the freedoms of economic competition and economic inequality, the price system, economic progress, and a harmony of material self-interest of all individuals who participate in it (George Reisman 1998)
The economic development stages were said by Marx to consist of two major groups which include the workers and owners of means of production, he provided a historical description of economic development whereby he pointed out the major stage, the first stage was slavery, then feudalism, then capitalism and finally communism, he viewed communism as a form of economic organization that would emerge from the ruins of capitalism, according to him workers were oppressed and alienated and a revolution would take place that would replace capitalism with the communist form of society. (Benedetto, 1996)
However, Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living; This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price, and allocate resources. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system.
Although Marx, the “Father of Modern Socialism” predicted that Capitalism would fail, actually Socialism has been the greater failure historically. Since the socialist state holds a universal monopoly on labor and production, no economic incentive exists for the socialist state to provide anything more than minimum physical subsistence for the workers. Exploitation is inherent to the nature of socialism because individuals cannot live for their own sake, rather, they exist merely as means to whatever ends the socialist rulers may have in mind.
(Capitalism, Robert E Lucas Jr 2008)
As for Labor value was also another principle of Karl Marx economics, labor value refers to the value of a product that is usually determined by the amount of labor utilized to produce the product. This means that he assumed that the value of products depended on the amount of labor used in the production of that product, he stated that the greater the productivity of labor then this means that less labor hours will be spent in producing the product and therefore the lower will be the value of the product.
In conclusion, it has been proven by history that a free-market economy (Capitalism) increases the living standards of most people more than an economy controlled by the command of the state (Socialism). An excellent natural example of this is
East and West Germany. During the middle of this century, West Germany was a capitalistic “free” society, while East Germany was controlled by a socialistic government. Living conditions in East Germany were deplorable and East Germans routinely tried to escape to West Germany. The Berlin Wall was erected by the East German government to keep their own people from defecting
. However, eventually, the socialistic East German government and the Berlin Wall both failed and Capitalism and freedom prevailed. Personally
, I am very glad to live in a free, Capitalistic society.
On the other hand, according to the capitalistic point of view of labor, they said: The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seem to have been the effects of the division of labour.
The effects of the division of labour, in the general business of society, will be more easily understood by considering in what manner it operates in some particular manufactures..... The division of labour, however, so far as it can be introduced, occasions, in every art, a proportionable increase of the productive powers of labour.
Capitalism has its disadvantages as well: high unemployment, the “boom-slump” cycle, poverty and crime. Despite those disadvantages, however, capitalist societies, historically, have done remarkably well in improving the human condition as a whole over the long run, while strict socialist societies have had
severe declines in economic welfare.
The separation of different trades and employments from one another seems to have taken place in consequence of this advantage. This separation, too, is generally called furthest in those countries which enjoy the highest degree of industry and improvement; what is the work of one man in a rude state of society being generally that of several in an improved one.
For the longest time, capitalism and socialism have been two of the most argued and debated topics. Many view socialism as the better choice because it evens out and distributes the wealth so not only one individual or a group of individuals control it all, and because socialists tend to pay more heed and take more caution in the careless using up of natural resources
. Capitalism can be seen as the better economic choice because capitalist countries are usually much more technologically advanced, and because individuals can make their own business decisions and
choose their profession with out trouble or disapproval from the government. While both economies have potential for success, capitalism is by far the better option for many reasons. Capitalism is the best way to run an economy because it allows individuals to make their own business decisions and
to be self-motivated, it limits the power held by the government, and, unlike socialist countries, capitalist countries are more technologically advanced and better educated.
In every improved society, the farmer is generally nothing but a farmer; the manufacturer, nothing but a manufacturer. The labour, too, which is necessary to produce any one complete manufacture, is almost always divided among a great number of hands.
Capitalism and Socialism are both driven by strong ideals. One looks to competitive economics to allow the worker to provide for himself and achieve any level of success. The other believes the willingness to relinquish wealth and prestige, for the good of the many, will result in a strong economy and society
. History shows us that
the internal struggle between the self and the group will continue to manifest itself in this way. The global picture is colored by both of these systems
. Capitalism and Socialism are part of an international battle of practicality versus ideology, empowerment versus support, and choice versus control.
... This great increase of the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many.
Capitalism and Socialism are two economic systems that have opposing views on the end goal and how to reach it. Capitalism is centered around competition and privatization while Socialism is driven by social equality. As with any philosophy
, there are positive and negative aspects. Capitalism’s focus on competitive economics downplays social reform. Socialism’s concentration on social equality often does not allow for rational economic decision making. Each with their strengths and weaknesses, both of these systems are fueled by
good intentions. Often, good intentions are lost when policy makers wear blinders and fail to see their direction has been changed by their inability to incorporate proper freedom and control.
(The Wealth of Nations, Adam, 1937)
Regarding wages in the economy Marx pointed out that workers sold labor power to the owner of the production process, according to him the value of wages that prevailed were determined by the market forces which include the demand for labor by the capitalist and the supply of labor by workers, these forces determined the wage rates and given that the means of production were owned by only a few capitalist then workers were the majority and therefore labor supply was high. Wage rate in the economy however were sufficient to enable workers to reproduce labor power.
No ideal can become reality unless is has been embraced by the group. In the case of Capitalism, the labor force believes that education, hard work, patience and connections can lead to prestige and wealth for everyone. Any negative issues that arise from the combination of human nature and competition are simply
a small price to pay for the immense opportunities offered by the system. Socialism expects just the opposite from its workers. Socialists believe that the natural human need to care for each other is built into the concepts of collective control. They feel that the workers will accept and embrace the loss of control to governmental authority as an exchange for the betterment of society. For these two methods, the freedom or control of the worker is what makes their policies successful.
As for the capitalist, they argued about the wage as The value of labor is determined on a foundation of its utility and scarcity, by demand and supply _ more specifically, by the competition of buyers for the limited supply not by any form of cost of production, least of all by any cost of production of labor (Capitalism, George Reisman 1998)
Karl Marx distinguished two forms of capital as constant and variable capital, according to him constant capital referred to non reproductive capital, constant capital refers to the capital value that does not undergo any changes in its value in the production process example machinery and raw materials, according to him interest and depreciation costs were transferred to the cost of products and therefore these form of capital does not add value to the product produced. (Karl Marx, 1991)
The other form of capital according to him was variable capital, variable capital refers to the portion of capital that represented labor power, labor power produced value to the product that was equal to its value and also produced a surplus. Labor was the sole source of value of the product and this refers to the portion of capital that was spent in hiring of the workers.
The idea of fairness is an equalizing cause that brings people together and spurs them into action. Both Capitalism and Socialism are grounded by the idea of fairness. It is, in essence, their focus. However, they both see fairness as measured by something entirely different from the
other. Capitalists believe that fairness is found in the freedom of competitive pricing, production, and distribution of goods. It is also highlighted by the private ownership of property and decision making. Socialists believe fairness can only be achieved by the equal distribution of wealth and opportunity through collective means. The government owned and managed production and
distribution of goods allows steady work for everyone and a society built on equal lifestyles. Capitalists reward their labor with possibilities of wealth, power and property. Socialists offer social justice through equal opportunity, pay, and care. The workforce for each magnifies this key difference of focus
(Karl Marx, 1991)
For the capitalists, There are two dimensions to the scarcity of capital and capital goods. In one respect, capital goods are simply as scarce as our labor and ability to produce consumers goods.
The difference between Capitalism and Socialism can be summed up by their definitions. They are based upon completely opposite philosophies. Capitalism is a political and economic system in which factories, companies, land, etc. are owned privately in order to create profit for the owners. Prices of goods and services fluctuate
depending on the desire of the consumer and the
availability of the goods (the law of supply and demand). In a capitalist society, there will be significant differences in wealth
and power between those who have capital (machines, factories, ships, land, etc.) and those who do not. Capitalism is the only politico-economic system based on the
doctrine of individual rights. This means that capitalism recognizes that each and every person is the owner of his own life, and has the right to live his life in any manner he chooses as long as he does not violate the rights of others.
The second dimension of the scarcity of capital refers to the fact that goods can be produced with varying amounts of capital per unit, that is, with varying degrees of capital intensiveness. (Capitalism, George Reisman 1998)
Marx also pointed out the importance of technology in the production process, technology and machinery were important ingredients in the production process, and technology increased the productivity of labor given that reducing the time taken by labourers to produce his exchange wage value, therefore capitalists aimed at reducing the time spent by labor in the production process by introducing machines in the production process. (Benedetto, 1996)
The economic degree of capitalism and the degree of capital intensiveness in the economic system operate, as it were, as a kind of long-range radar net for technological progress with commutative long-run consequences for capital accumulation and the ability to implement technological advances, in that they determine which kinds of technologies can be picked up and implemented at any given time. (Capitalism, George Reisman 1998)
Comparing and contrasting the two theories, showing their pros and cons, combining their pros, and coming up with a model that shows the best fit for a perfect economic theory. This theory will be proved by works of other scholarly, and by examples of countries that have taken this theory into action and now are leading the world economies.
In theory, there are advantages to Socialism. It sounds noble to advocate the equality of everyone, and supply national retirement and health care systems to make ordinary people better off. Theoretically, under Socialism, there should be no unemployment, no inflation, and no disparity of wealth, status, or power. However, in actuality, the under-privileged in most socialist countries have
“benefits” that are expensive, substandard and hard to obtain.
Capitalism VS Socialism: comparison
As we have seen capitalism consisted of free market system with small government intervention in the market according to Adam Smith, labours are fit to work as much as possible to come up with the optimum production, wages are distributed according to the demand and supply of the labour itself, capital is accumulated and saved, and technology is crucial for economic growth and development which are based on GDP and living standards.
On the other hand, socialism is a planned market economy, where the means of production lays in the hands of the government, labours are suppressed therefore they need to retaliate on the means of production owners through revolutions that would destroy the capitalism system and replace it with the communist system, moreover the socialists believed that the wages it was referred to as the value of a product that is usually determined by the amount of labor used to produce the product, capital was separated into two categories, constant and variable, where constant capital is the capital from machinery and raw materials that depreciated therefore cannot be included in the factors of production and the variable capital that is the labour capital, which is the sole power of valuing the products produced. Last but not least, one of the factors I am studying in this paper, is technology which according to Marx and Socialists in general, is a main source of economic development, as it facilitates the production process on the labour and is more productive and efficient, they also argued that it is the reason for the economic development in the capitalist systems.
The level of social care is also defined by these different views. Socialists build every part of their system around the needs of the people. Socialistic governments have high tax rates, so as to pay for the social programs, such as medical care. Capitalists systems, being more focused on the individual’s achievements, tends to handle social issues as a second thought
. Programs are funded by government transfer of wealth. The competitive drive of the Capitalist demands that each person choose to work
hard for what they need. The scale of individual wealth versus care through the collective continues to tip back and forth in political elections.
Political and economical power accessible to all Economic and political power in the hand of the government
Capital ownership for all Capital ownership controlled the government
Capital incomes beyond consumption capacity for a wealthy elite Adequate and secure incomes from capital for a governing elite
Individualistic system Collectivist system
Materialistic ideology and system which ignores the growing income insecurity and inequality Materialistic ideology and system based on and fostering the absolute dependency of all citizens on the state for their income security and well-being
Labor-centric, classical laissez-faire economic system Labor-centric Marxist and Keynesian systems
Win-lose, zero-sum, scarcity, orientation Lose-lose, zero-sum, scarcity, forced-levelling orientation
Sacrifices justice for efficiency Sacrifices efficiency for collectivist "justice"
Wage system (jobs for the many, capital ownership for the few) Wage system (jobs for all, capital ownership for none)
Equality of opportunity to work; inequality of opportunity to own Forced duty to work and forced equality of results as determined by governing elite
Protects private property rights eliminates rights of private property and putting control over means of production in hands of the government
"Hands-off" role of the state regarding monopolization of ownership and control Economic power is totally centralized in or regulated by the state
Prices and wages are unprotected from global competition Prices and wages controlled by government
Capital credit available to all All credit controlled by state
Technology controlled by private sectors Technology controlled by the government
Basically these two systems have more into them than just, technology, economic development, labour, and capital; they vary in a very important figure which is government intervention along with certain different sectors summarized in the table below:
In less words, Capitalism is based on a free market, least government intervention in the economic processes, Labours have to depend on their skills, education and knowledge to be able to get paid and live decently, yet they are free to do any business, and buy and sell in the market. Competition is very high due to the free business system, which enhances price inclination, leaving the society better off.
Capitalism has everything to do with ownerships, operations and trade with an objective of producing gains for shareholders and private developers. The focus is mainly on personal effort and profit instead of considering the society as a whole. There are no restrictions as to who could own the capital.
Moreover, private ownership and property is accepted for all the people as in, they are free to own anything they pay for, furthermore, business is dealt with according to demand and supply, which pushes the prices to increase or decrease (as the demand increase price increase, as supply increase price decrease). On the other hand a socialist system is based on government owning all factors of production, government setting a standard price for goods and services, distributing wealth and wages to all labours, finding jobs and employment for everyone in the society, concentrating on the well being and the equality among citizens, rather than enhancing competition and rivalry, all property is owned by the state, and business is based on the States well being and decisions of what goods shall be sold and at what price and in what quantities.
Size of welfare system Immense Quite extensive Small to moderate No welfare system power by the state is at the expense of individual freedom. Socialism upholds that man is not an end in himself, and that he must sacrifice his own convictions for the sake of the greater good of the collective entity.
Advantages and Disadvantages:
The advantages of Capitalism mainly circulates around the distinctive freedom the people have, as they are allowed to start up a business whenever they can, they can enter and leave the market freely which enhances competition. This competition increases supply, therefore prices of normal goods will decrease and quality of goods will increase, leaving the society better off.
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Also when the market has all these businesses coming in and out, system corruption do not take place as there arent any specific people controlling everything to their benefits, therefore corruption will least occur in a capitalistic system.
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Furthermore, creating great competition between firms and businesses, will lead each firm to enhance its technologies and innovations, coming up with new goods and services that will all benefit the consumer on the long run. On the other hand, capitalism leads to income inequality as
the poor will remain poor since they lack the ability to start a business and make
money, as for the rich, they will become richer as they have all the tools that leads to monopoly and the dismantle of the poorer.
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Moreover this system will create high unemployment rates, as every individual is self-dependent to get an education and find a job and make money, if you dont have the ability to work you will end up helplessly unemployed with no one to help you out. Also one of the disadvantages of
capitalism highlighted by Karl Marx, it states that:
The capitalists will face falling profit levels and the only solution to this problem will be increased exploitation of labor, exploitation of labor will involve reducing wages in order to attain desired surplus values, there will be a rise in unemployment and this will be due to technology advancement and population growth, the high unemployment will increase labor supply enabling capitalist to further exploit labor.
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Monopoly capitalist will lead to increased constant capital and as more and more workers become unemployed and due to further exploitation of labor through low wage rates there will be a revolution where the capitalist form of society will be replaced by the communist form of society.
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As for socialisms advantages, first this system promotes equality among the society, where everyone is treated exactly the same, everyone is employed and everyone gets paid an equal wage at the end of the month, second, the government provides its people with everything they need, healthcare, education, etc... Thirdly the government puts all the rules for the economy, the politics, the judicial system and the society, therefore no monopolistic power to exploit the poor, but the poor doesnt exist. Socialism has faced a lot of criticism, and the main point is that, although there are no monopolistic powers exploiting the people and everyone is treated equally, but the government or the state that is controlling everything becomes the exploiting power. As the state controls all resources, all the wealth the labours make, all the businesses working on its lands, owning every piece of land and distributing very little to its citizens is what puts socialism up to the question. In concept, the theory is perfect on the human level, but in action, most states officials exploit the labours, distribute very little to them, keeping all the wealth for themselves, and having the power in the hands of a small number of people will lead to dictatorship, as whats happening in Venezuela and Cuba, there the people are poor but their governments are rich. Socialism promotes corruption as there are no supervisors or controls on the elites who holds the factors of production.
In short the table provided will show the pros and cons of socialism and capitalism:
Income Equality for all Competition leads to lower prices and higher quality of goods and services
Employment for all Innovation and technology increases
Government provides healthcare, education, security and income for its people Least forms of corruption
No monopolies takes place as prices are fixed Economic freedom and businesses initiation, creates opportunities for people to make as much money as they work for
Exploitation of labours Monopoly
High levels of poverty thus high levels of crime Income Inequality
State owns all the means of production, economy is controlled, no entry of new businesses unless under the power of the State Big gap between the rich and the poor, where the poor have no hope in maintaining a good living standards, and the rich exploits the poor as they are the ones who can open and close businesses as they own the majority of the capital.
As I have just laid out the advantages and disadvantages , the facts on both theories and a brief summary of what they consist off, its time to come up with the economic theory that have minimal disadvantages, by combining both systems, Socialism and Capitalism.
First, we must have a free economy, where businesses can compete against each other freely, this will promote advancements in technology, innovation and quality of goods and services produced, it will also promote price decrease due to an increase in supply, which will leave the society better off, and the economy raging in variety and growth.
Second, we must have government intervention in certain aspects of the country, like healthcare, education and infrastructure, as these three are the basics for any future economic growth. When the society is healthy and well educated, it will gain more skills and characteristics that allow them to open businesses and firms that will lead to economic growth and development.
Third, governments and private businesses should work together in order to be able to build up the perfect employment system, where no one is left behind, this way firms and business will have their labours, and governments will get rid of unemployment. Having full employment will lead to a better efficient and effective working society, which will eventually lead to economic growth and development, which will lead the country to advance and become more powerful.
Fourth, having a Social political system combined with a free market will reduce the gap between the rich and poor, as the government will be providing those who are not able to work, with decent living standards of basic health, education and shelter.
Fifth, maintaining free trade is essential for economic development (capitalism), but having trade surpluses is whats perfect for economic growth, in order to do that, the firms and governments should combine their efforts in creating manufacturing goods industries that will fill up the domestic market and have a surplus for free trade. This will boost the economy upwards and will open the market to the world, also importing less expensive goods and services than if manufactured by the country, i.e. make use of comparative advantage.
Although the struggle and debate between these two economic theories have been going on for as long as history can take us, yet history has proved the inconsistency of these theories by first the failure of the Soviet Union and the poor conditions the Socialist countries nowadays are living in, like Venezuela, Cuba, Sweden, Greece, Russia, Vietnam, and Syria. On the other hand, the world was cheering for Adam Smith few years ago, as Capitalism was showing success and stability added to great economic power leading to political power, until 2008 where the whole economic system crashed, throwing the world into its worst economic recession since 1929. The few economies that survived this economic downturn inspired the world with the best economic system; one of few was Singapore, a country with no natural resources whatsoever, and a combined mixed economy of Socialism and Capitalism. The study of this country itself, has inspired me to dwell into the main economic theories of Marx and Smith, in order to come up with this system that if practiced correctly and ethically will lead to economic growth and development; and the president of the biggest capitalist country of the world, Barak Obama, sure supports me on this, as he has just been passing bills that supports government intervention in the countrys social welfare, on the other hand Hu Jintao, the president of the biggest socialist country in the world, cannot agree more that having a free market combined with a socialist approach is the best thing to do to maintain a countrys power economically and thus political. As Chinas economy boosted once they opened their markets, and the U.Ss market recovered after government intervention in the market and bailouts provided to those who went bankrupt.
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