The two main political, social, and economic systems within the global arena are capitalism system and socialism system. Capitalism and socialism differ widely in various aspects such as equity, ownership, unemployment, efficiency, and economic systems. In addition, capitalism and socialism hold different views and perceptions on religion, way to change, philosophical drives, political movements, and key components amongst others (Nell 178).
Whereas capitalism system takes very little concern on equity and instead encourages inequality for the purposes of production, socialism enhances redistribution of resources for the main aim of ensuring equality amongst the citizens. Under capitalism system, business organizations are largely owned by private individuals as well as shareholders. Therefore, creation of jobs is within the hands of the private sectors. As a result, it becomes difficult to check on unemployment rates especially during the extreme ends of recession and boom.
On the other hand, socialism system is where majority of the production firms and operations are state-owned. As a result, job creation is a duty of the state, which has the capacity and capability of restoring unemployment during recession. It is argued that capitalism system enhances efficiency of production whereas socialism system always leads to inefficient production systems (Nell 178).
Amazingly, whilst socialism system derives its motivation on planning for the purposes of defining the type and magnitude of investment, capitalism system will obtain the motivation to move on from investments, productions, as well as distribution channels and procedures. Politically, capitalism system practices classical liberalism, neo-liberalism, social liberalism, libertarianism, and social democracy (Nell 178).
On a different perspective, the political systems found within socialism include democratic socialism, anarchism, communism, and syndicalism amongst others. Lastly, other than enhancing free market, capitalism also provides room for freedom of religion (Nell 178). Based on the above analysis, it is therefore clear that capitalism is better than socialism.
Work Cited
Nell, Edward. "Capitalism versus socialism." Markets, Unemployment and Economic Policy: Essays in honour of Geoff Harcourt, Volume Two 2 (2012): 178.
