Capitalism and Socialism
Varieties of capitalism arise from a number of institutional characteristics that prevail in the developed economies of the globe. Such institutional characteristics include; education and vocational training, industrial relations, inter-firm relations, corporate governance and intra-firm coordination (Soskice & Hall 23). These characteristics differentiate two forms of capitalism, coordinated market economies- CME’s and liberal market economies- LME’s. Aside from differing in their institutional characteristics, these two forms of capitalism differ in certain macroeconomic aspects especially industrial specialization and ...view middle of the document...
They try to create a sustainable and equitable economic environment for every player to make their contributions through their policies. ‘Humane’ capitalist economies gear their policies towards efficient service delivery for the people. An example of a ‘brutal’ capitalist economy is the United States. Such countries get considered as ‘brutal’ as they advocate for direct competition among its economy players. This competition leaves a percentage of the population vulnerable to poverty (Soskice & Hall 123). ‘Brutal’ capitalism represents a man eat man society where the more an individual has, the more the individual is likely to accumulate more and take part in the economy. ‘Brutal’ capitalist countries are more likely to place profits over the people.
A ‘humane’ and ‘brutal’ capitalism cannot exist together. This is so because if they do, then it would revert to the general capitalist economy which contains strains of both forms of capitalism (Soskice & Hall 133). These forms of capitalism cannot compete directly but rather, indirectly.
Einstein argues for a socialist future over capitalism. This is so as Einstein believed that a socialist future would help cure the evils of capitalism. He suggests that there be a socialist economy that works in tandem with an education system that tailors towards achieving social goals (Soskice & Hall 204). He believed that such a system would ensure that the means of production become owned by the society itself and thus make sure the get utilized in a controlled fashion. A socialist economy would require that every individual becomes guaranteed of a livelihood. He believed that the education system provided by a socialist economy would help to inculcate a sense of responsibility among humans in favor of a system that glorifies power and success as the capitalist economy.
A socialist society would help bring back humanity to the globe. Socialism focuses on providing every human being an equal opportunity towards living a better life. The vast resources owned by the society should get used to attain the needs of the people. With a socialist economy, all factors of production get owned by the society and thus all products become equally shared among people (Soskice & Hall 200). This will help to curtail on evil deeds such as greed, which provide an unfair advantage to owners of capital in other forms of economies. The sense of responsibility inculcated by socialism assists people to share responsibility as well as problems. Sharing forms the basis of humanity. Human beings need to share during the good, bad, and rough times too. Socialism would inculcate humanity to the people in the society.
A socialist economy gets planned and controlled, not left to the free market choices or direct competition of the capitalist economy. This means that resources would get carefully planned and not left to waste (Soskice & Hall 300). Money would be put to good use to meet the basic needs of...