Capitalism,socialism and communism which of these three lays its golden egg and why?
Capitalism’s Golden Egg
Sociology and anthropology Capitalism, socialism and communism are all aspects that govern an economy and society in various ways and through distinct conditions. Communism is an economic and political arrangement where all property in a society is owned by the community and the contribution of each individual is according to their needs and abilities. On the other hand, Socialism is an arrangement where advocation is that the means of production and distribution should be with the ownership of the community (Hunter,2018). Capitalism is an economic and political systematic approach in which the industrial activities and trading operations in a society are controlled through privatization of the economy rather than control by the state.
Among the three aspects I believe that capitalism lays a golden egg. A well renown sociologist, Max Weber defines capitalism as where property, which is the object and center of trade is left in the hands of individuals to be utilized for the purpose of profit maximization. The capitalism system is dependent on the forces in the market and aims at the benefit of individuals (Smith,2017).
Capitalism lays a golden egg because of the vital concepts that this approach holds. First, Capitalism gives an individual the opportunity to fully maximize the private property. An individual may do this in ways preferred. In the utilization of private property, the capitalist system stipulate that this should be done as long as the individual works within the stipulations of the law. Failure to adhere to the requirements of the law may bring about conflicts with the law makers.
Citizens here have full control of the ownership of their property. In case of a sale, the individuals who are transacting usually agree on terms of sale without the involvement of the government and regulations. Here we see that the capitalist system lays a golden egg because this system gives individual full control over what is theirs.
Secondly, in the capitalist system, the individuals themselves control labor, capital and land which are essential factors of production. The prices and costs that are involves these factors are set by the private companies or individuals that own them. The benefit with this is that the prices set are in a position to guarantee profit maximization and the attainment of efficiency in production.
In case there is a realization of surplus in production, the individual utilizes this to get additional profit. This is essential as individuals reap benefits from factors of production such as land that is legally owned by themselves. They do not have to adhere to government policies in regard to production factors.
Thirdly, the capital system concentrates in the accumulation and maximization of capital. In this system profit maximization and cost minimization are the forces that foster economic operations. The individuals in this system believe that the massive accumulation of profit is a motivating factor to the increase in hard work. Innovation and creativity follow when individuals take an initiative to work hard to increase profits. Innovation is viable in this market system as individuals are able to develop and establish new methods and ways of production to enhance efficiency and more profits (Moore,2015).
sociology and Anthropology Paper
Finally, the capitalistic economic system embraces the need for competition to enhance quality provision. In this system, the private business enterprises strive to out do each other in the provision of goods and services and this culminates to competition. This in return leads to the provision of high-quality goods and services that serve preferences of the market. Through competition, business owners are forced to use methods such as lowest prices as compared to other businesses. This method of lowering prices increases the competitiveness of the specific business that utilizes it.
Stiff competition in this economical system can make other businesses to get out of business. This practice all in all enhances convenience of doing business. In this system, individual businesses do not all victim of monopolistic impacts since they have voluntary decisions to carry out transactions with other businesses. For these reasons, there is essence in capitalism (Mulgan,2015).
With relation to communism and socialism, capitalism is a more efficient market system. Capitalism hastens the possibility of economic growth as opposed to socialism where there are lesser rewards for individuals. Consequently, the individuals are demotivated to work hard towards economic growth. In communism, there is an element of control by the government of assets such as factors of production. Thus, the allocation of resources may be decided upon by the government. This may lead to less competition among businesses thus lowering the possibility of invention and innovation
In conclusion, capitalism lays a foundation for the development of individual economical attributes. This system enhances the concentration on individual economic and social status. Business enterprises in a capitalist economy are able to register continuous growth. There is a high possibility of development of high standard solutions to business problems in a capitalist market system.
This is because privatization enables business organizations to closely analyze inherent challenges such as those of stiff competition and be able to deduce viable solutions to them. In comparison with the communist economy, the capitalist economy is more efficient for individuals. This is because in a communist economy, the government control the market forces including prices. Thus, this economy does not work in favor of individual businesses. In this conclusion I regard capitalism to be the golden egg layer as compared to communism and socialism.
Hunter, N. (2018). What is socialism? Oxford: Raintree.
Moore, J. W. (2015). Capitalism in the Web of Life: Ecology and the Accumulation of Capital. Verso Books.
Mulgan, G. (2015). The Essence of Capitalism. The Locust and the Bee. doi:10.23943/princeton/9780691165745.003.0003
Smith, K. (2017). Capitalism. The Wiley‐Blackwell Encyclopedia of Social Theory, 1-8.