Why Is Capitalism Better Than Socialism

Throughout the course of history of humanity, many civilizations have thrived, failed, and disappeared. All governments have contemplated and searched ages for the ideal form of the economic system, to provide the most secure, the most stable, and the most consistent lifestyle for the citizens. All economic systems can be largely separated into two categories. One, socialism, the other, capitalism. Socialism is frequently associated with “communism,” a form of economy where the government is centralized within the economy. Socialism, proposed by Karl Marx, is merely an economic system where all wealth is equally distributed among the citizens, and the government intervention is minimized. Capitalism on the other hand, proposed by Adam Smith,
is a form of economy where the government takes no part in the economy, creating a restriction-free economy. Through extensive research, our nation, San Telmonia, has come to the conclusion of following a socialist economy, because it will protect the equality of citizens while maintaining a growing economy. Socialism is more beneficial to our society since it provides a constant and stable life.
In a communist economy, wealth is distributed equally among all citizens. Through this distribution, a socialist economy creates a nation with absolutely no poverty. Because everyone owns a “normal” amount of wealth, there is no concept of “poor” because there is no method of comparing two equal objects. Another factor which contributes to a secure economy is the fact that the majority of resources is property of the government. With the government owning the property, the government will protect the property. The protection will result in minimal loss of property, whether it be due to natural or man-made causes. The equal protection would mean that the government insures all the resources and in the event of a loss, the damage would quickly repaired or compensated. The final factor for why socialism is superior to other forms of economy is because the overall economy would improve. In the communist economy, the government will constantly monitor the capital, labor, entrepreneurship, and land of the economy. With the 4 major factors of production being monitored, and the government being able to intervene in the economy, the government could easily allocate underutilized resources from wasteful businesses to businesses which require it. This controlled economy will allow for superior economic growth by minimizing underutilization, shortages, and
surpluses. By now, some may notice that in a communist economy, individual growth and freedom is limited because the growth is taken by the market, therefore, a capitalist economy would be better.
But, in the capitalist economy, wealth is distributed unevenly. The gap of wealth between wealthy and the poverished only increases as time goes on. An example would be the United States of America. In an article published by “Forbes,” it is stated that the top 1% Americans make $717,000 annually, while the other 99% makes only $51,000 annually. Another stated fact is that the wealthiest 1% controls 43% of the wealth in the nation. It is clearly evident that unequal distribution of wealth will result in an economic disaster. Another reason for why capitalist is inferior is because it does not protect the resources available in the nation nor the individuals.. In an article from “USAToday,” it is revealed that in America, up to $49 billions worth of medical bills are unpaid due to uninsured individuals a year. These unpaid bills then are paid with tax money, an important asset a capitalist economy would never have. However, some may continue to argue that with competition, the economy would improve, therefore, allowing all individuals in the economy to live a more financially supported life. However, competition is rendered obsolete when an individual is too poor to even afford the most basic of necessities for life. In America, according to “CNSnews” 35.4% of the population lives on
welfare. In a purely capitalist economy, these 35.4% would not be able to receive this welfare, leaving them essentially bankrupt. Though it is true that the implementation of socialism would limit the individual freedom and growth, when comparing these losses with the numerous benefits like economic security and growth, the benefits of socialism far outweigh the negatives. Thus, our nation will adhere to the system of socialism for the sake of our nation and people’s growth and security. If we are able to properly follow the ideals laid out by Karl Marx, our nation will be able to prosper for a long period of time like the People’s Republic of China, currently the nation with the fastest growing economy based off of socialism.