Capitalism vs. Socialism
Capitalism and socialism are the two most widely used economic systems in the world. Capitalism is based on private ownership and enables individual accumulation of wealth, while Socialism is based on collective ownership and wealth distribution. Even though socialism offer some benefits such as, less disparity between the rich and the deprived, and wealth and progress of a nation is shared among the citizens, on comparing both the ideologies capitalism emerges as the most preferable way of governance.
Winston Churchill once famous said, “The inherent virtue of socialism is the equal sharing of miseries." His words denote how a socialist society makes many people suffer, so that a few can enjoy comforts. In capitalism, if one puts in hard work and has talent and capability, he can achieve success. In socialism, even if an individual is capable and is willing to work hard, he would not be able to achieve success, as the system discourages unequal wealth distribution.
Socialism discourages entrepreneurship and most of the projects are run by the government. A socialist government promises its citizens equality of wealth distribution, which can be achieved only if it has totalitarian powers. Thus, an individual’s freedom is curbed under this system. A capitalist government, on the other hand, can distribute the fruits of its progress through laws and legislations. It collects taxes from the earnings of the citizens, and spends it on welfare measures, so that every citizen in the country is benefited.
Capitalism encourages innovation, but in socialist governments a new innovation becomes prey to bureaucratic formalities. Capitalism, by offering security to an individual’s property and thoughts, creates an environment where innovation thrives. Though, while viewed superficially, a capitalist society might look like a society in which people are doing jobs to promote just their self-interest, on closer scrutiny it will be reveled that, each job a person does contributes to the collective good. Thus, capitalist government is the best form of governance, as business acting as business and not as charitable donors, is the best way to achieve collective progress.
Humes, James C. Churchill: The Prophetic Statesman. New York: Regnery Publishing, 2012. Print.