Buisness

Stephanie Zaman
Section 2

Socialism is the political movement that believes the State should be in command of all key
resource producing industries;   this   will seize control of the free market in order to
promote social and economic equality. The government is in control of all resources for
equal distribution to all of their people. Socialism looks to distribute wealth equally among
all its citizens. The rich don't take advantage of the poor, and the government uses the resources of the
most productive citizens to take care of the   less fortunate. This is usually accomplished by
laws that are passed and designed with the   purpose of taxation, seizure of personal property,
and insuring that members of the socialist party stay empowered. The definition of capitalism is defined
as: (an economic system in which the means of production and distribution are privately or corporately
owned and development is proportionate to the accumulation and reinvestment of profits gained in a
free market.)   While Socialism holds to the belief that the government will care for the needs and well
being of its citizens.
Capitalism emphasizes private ownership of property, individual entrepreneurship, and
corporate competition. One positive aspect of capitalism is that it provides valuable goods and services
that are proven throughout history to be a great benefit to society. An example of this is a company that
manufactures car stereos; they have greater incentive to produce higher quality stereo systems than an
equally equipped government owned stereo company. This is due largely to higher profit earnings that
are the driving force behind higher levels of productivity.   In the Socialist society there is theoretically
little chance for advancement due to hard work, and less incentives for professional achievements.