Dr. Jeff Kersh
March 10, 2016
Bernie vs Trump: A Contrast and Comparison of Capitalism and Socialism
Getting the right ideas of how an economy should be run is a significant challenge. However, two systems can be used: socialism or capitalism. The United States continues to face this challenge. The current presidential campaign illustrates this important issue. Two candidates exemplify the two economic ideologies. Bernie Sanders adheres to the idea of democratic socialism, while Donald Trump follows capitalism. Capitalism is seen as a system that is mostly based on entrepreneurship, market allocation, and private ownership (Friedman 15). Socialism, on ...view middle of the document...
Thus, there is increased equality for all in the society.
In capitalism, there is increased individual economic freedom thus increased monopoly in the market (Friedman 10). The government does not own most of the means of production such as businesses and factories; rather, individuals privately own them. These individuals make the decisions about what should be produced, where and how much they cost. Through freedom of choice, the consumers drive the economy. People thus make the best decisions as they know they are responsible for the consequences. However, in a socialist system, the freedom of choice is limited. Choices on their job, marriage, and religion are up to each person, but the government offers other compulsory services through a socialized system and funded through taxation. These compulsory services include healthcare, housing, as well as others.
Through capitalism, there is free competition in the market. There is no interference or influence from outside force or the government. Here the more hardworking and determined people will be successful and thrive. Prices of products will be kept as low as possible since the customers will purchase products at the least prices as possible. Supply and demand for the products determine the prices set for commodities. If the prices are low, there will be increased demand for products while if the supplies are high, there are high prices set for the products (Hoppe 17). Also, the profits that are received by the capitalists are reinvested back into the economy to ensure its stability. While in socialism, the influence of the government is high. The state adjusts the production and economic activity so that they are able to meet the needs of the people and other economic demands.
According to social structure in capitalism, there are classes, but they are based on a relationship with capital. Here the capitalists own the shares of production and derive their income from that same means. The working class is dependent on the salaries and wages they are earning (Hoppe 15). Social mobility is relatively easier in this economy when compared to a socialist. In socialism no economic class distinctions exist, and the only classes that exist are political distinctions. Status is thus derived from the political distinctions.
In capitalist systems, there are more technological advancements and also better education systems. A capitalist system is highly flexible, and it allows for the adoption of the ever changing economic variations in the society (Walter 8). If a country is able to adapt to the changes in relation to the products and services in the market they will be more technologically advanced and...