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Capitalism
Principles of Capitalism -
Individual Rights
The most basic and widely understood principle of capitalism is that of individual rights to life, liberty, property and voluntary contractual exchange. Individual rights encompass not only the right to control ones own life, liberty and property, but also to defend those rights.
Equal Justice Under Law
The principle of equal justice is critically important to the function of capitalism. Government must treat all individuals and organizations equally, refraining from giving any legal support to popular discriminatory practices. Government must also never succumb to the temptation to reward unsuccessful businesses and individuals with special benefits or heap additional burdens on successful business.
Limited Government
The limited role of government solely to the defense of the rights of individuals is also an important and almost universally understood principle of capitalism.
Advantages
The government has limited control over business, which lets business compete. Capitalism lets people choose what kind of work they want to do and where they want to work. Capitalism lets people decide what they want to do with their money if they want to put it into a retirement account or in the stock market.
Disadvantages
Disadvantages of Capitalism are barriers between people in terms of how much wealth they have or how much money they make. Another disadvantage of Capitalism is that government control is so limited that it lets a few businesses to dominate their industry and then they become able to make the rules for their industry.
Principles of Capitalism -
Individual Rights
The most basic and widely understood principle of capitalism is that of individual rights to life, liberty, property and voluntary contractual exchange. Individual rights encompass not only the right to control ones own life, liberty and property, but also to defend those rights.
Equal Justice Under Law
The principle of equal justice is critically important to the function of capitalism. Government must treat all individuals and organizations equally, refraining from giving any legal support to popular discriminatory practices. Government must also never succumb to the temptation to reward unsuccessful businesses and individuals with special benefits or heap additional burdens on successful business.
Limited Government
The limited role of government solely to the defense of the rights of individuals is also an important and almost universally understood principle of capitalism.
Advantages
The government has limited control over business, which lets business compete. Capitalism lets people choose what kind of work they want to do and where they want to work. Capitalism lets people decide what they want to do with their money if they want to put it into a retirement account or in the stock market.
Disadvantages
Disadvantages of Capitalism are barriers between people in terms of how much wealth they have or how much money they make. Another disadvantage of Capitalism is that government control is so limited that it lets a few businesses to dominate their industry and then they become able to make the rules for their industry.
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Socialism
Principles of Socialism -
Advantages
Principles of Socialism -
- Abolition of private property and the application of all rent to public purpose.
- A heavy progressive or graduated income tax.
- Abolition of all rights of inheritance.
- Confiscation of the property of all emigrants and rebels.
Advantages
- Advantages of socialism relating to social equality include a focus on reducing wealth, unemployment and inflation through price controls.
- Advantages of socialism related to economic planning include an ability to make a good use of land, labor and resources, as well as avoiding excess or insufficient production.
- Nationalization of key industries, redistribution of wealth, social security schemes, minimum wages, employment protection and trade union recognition rights.
Disadvantages of Socialism
- Ddisadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.
- Critics of socialism claims that it creates distorted or absent price signals, results in reduced incentives, causes reduced prosperity, has low feasibility, and that it has negative social and political effects.
- Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moral rights, which are central to their conceptions of freedom and liberty