Economy - Capitalism and Socialism

Summary

Capitalism

Capitalism is an economic and social system in which capital and the non-labor factors of production or the means of production are privately controlled.

History of capitalism can be divided into each century.The economic system employed between the 16th and 18th centuries is commonly described especially from England. In the late 19th century, the control and direction of large areas of industry came into the hands of trusts, financiers and holding companies. But by the end of the 19th century, economic depressions and boom and bust business cycles had become a recurring problem.

And How capitalism to work, there are five types. Commodities, Money, Labour power, Means of production, Production. Capital is created with the purchase of commodities for the purpose of creating new commodities with an exchange value higher than the sum of the original purchases.

But critics argue that capitalism is associated with the unfair distribution of wealth and power; a tendency toward market monopoly or oligopoly.

Socialism

Socialism refers to various theories of economic organization advocating public or direct worker ownership and administration of the means of production and allocation of resources, and a society characterized by equal access to resources for all individuals with a method of compensation based on the amount of labor expended.

There are some examples of socialism. The People's Republic of China, North Korea, Laos and Vietnam are Asian states remaining from the first wave of socialism in the 20th century. Elsewhere in Asia, some elected socialist parties and communist parties remain prominent, particularly in India and Nepal. In Europe, the Left Party in Germany has grown in popularity, becoming the fourth biggest party in parliament in the general election on 27 September 2009. In some Latin American countries, socialism has re-emerged in recent years, with an anti-imperialist stance, the rejection of the policies of neoliberalism , and the nationalisation or part nationalisation of oil production, land and other assets.

And criticisms of socialism range from claims that socialist economic and political models are inefficient or incompatible with civil liberties to condemnation of specific socialist states .

My Opinion

I was able through this opportunity, to know more deeply about socialism and capitalism. Usually, I was thought to be a bad idea to unconditionally socialism. However, through this opportunity, to know the pros and cons of socialism and capitalism, it has become possible to have an objective viewpoint for both events. I have a line of sight more negative of socialism yet, but I think I want to know more about socialism.

And, I summarize partial and deep this time. So I felt this is also good way.

Question

I want to know more example of capitalism and socialism. And, I wonder example of their success and failure.