Business and Management Class Differences Between Capitalist and a Socialist Economy

The United States is a Capitalism System a System that has a small group of people who control large amounts of money, or capitol, make the most important economic decisions. This is true so Julie would probably say that The United States of America is considered a free market economy. The U.S has a Capitalist system. Capitalism is a social system based on the recognition of individuals rights, including property rights in which all property is privately owned. There are two classes of capitalism. One is the capitalism class and the other is the working class. The capitalism class is a small group of people. These people basically sell their ability to work for a wage or salary. They own the group that produce and distribute goods. The working class is then paid to produce goods and services which are then sold for profit. This profit goes to the capitalism class because; they can make more money selling what the working class has made. The capitalist live off the profits the working class produces and make reinvestments on their profits to make more money. In capitalism the motive for producing goods is to sell them. They don’t care if they satisfy the people’s needs. They just want to sell and make money. The government is allowed to change the rules at any time. The state doesn’t directly give jobs so in times of a recession the unemployment levels can be very high.

Jean Paul’s Response:
A socialist economic system is an economic system based on state ownership of capital.
It has a high tax rate and provides free education, welfare for everyone, universal healthcare, and social security. It supports workers’ rights and freedoms over business profits and gains. Belgium is a socialist economic system. This system is based upon the welfare of the people. All people are given equal opportunities to succeed. Capitalism is not concerned about equity. Rather than the workers having no say, in the economic system, the workers