Before I get started, I want to make sure everyone understands the definition of each system. The dictionary definition of socialism is a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. Capitalism is an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. In other words it means “free-market.” Socialism being closer to a system of government called “communism.”
Views On the Systems in America
According to Gallup, a poll shows many young people ages 18-29 are in favor of socialism to capitalism 51 percent to 45 percent. But Americans overall ,prefer capitalism over socialism 56 percent to 37 percent. So why are so many young people in favor of socialism? Many young people don’t have memory of socialism and don’t understand the faults of socialism. During the Cold War, the Soviet Union was a prime example of a country devoted to socialism with the cost of their citizen's liberties and lives. Under Stalin's rule, his programs killed over 50 million of his own people.
This term is used for many American politicians, one being Bernie Sanders who has changed his view on socialism over the years. In his younger years he loved the views of the socialist governments in Cuba, which has a poverty rate at 26 percent, and Nicaragua. But in the 2016 election, Sanders switched up and stated this “When I talk about democratic socialism, I’m not looking at Venezuela. I’m not looking at Cuba. I’m looking at countries like Denmark and Sweden.” The prime minister of Denmark, Lars Løkke Rasmussen, then came out to say, “Denmark is far from a socialist planned economy. Denmark is a market economy.” The Scandinavian countries are far from socialism and are actually more of a free-market than America is. Most people who say they want socialism don’t even understand what it is or have a clue about the situation. The United States didn’t become this successful because of socialism, but because of capitalism. Democrats also like to avoid the countries that have failed because of socialism like Venezuela which is in a very bad state right now. The mass starvation is because the policies put in by the dictator Hugo Chavez. These three policies put in were widespread nationalization of private industry, currency and price controls, and the fiscally irresponsible expansion of welfare programs. Venezuela also took away private owned guns from their people and now look what has happened. The people can’t take back the power of the government which was supposed to protect them and make everyone equal—not make their own people starve and murder their own people. The democrats want to do the same thing and take away our weapons. Socialism doesn’t work!
Capitalism and Socialism Differences
Now for the differences between both systems and how each work.
- Assets Owned by Private Firms
- Prices Determined by Supply and Demand
- Limited Taxes/Government Spending
- Free-Market Is in Charge of Health Care
- Economic Growth, Dynamic Economy, and Incentives for Innovation
- Assets Owned By the Government
- Redistribution of Income
- Price Controls
- Fewer Incentives to be Efficient
- High Progressive Taxes
- Health Care Provided by the Government
- Equality and Attempting to Overcome Market Failures
Both systems are very different and in my opinion, I think capitalism works better for the people. Evidence also proves capitalism works better because many countries who have tried socialism fell, falling apart or is not very successful. Countries like the USSR, Venezuela, Cuba, and North Korea. While countries using capitalism are very successful like the United States, Canada, Germany, UK, Japan, and many more countries who are all very successful.