Capitalism and socialism are the two major economic systems that underpin opposite structures and frameworks for economic and social management (Brander 15). The two systems are historically associated with the cold war altercation between the United States and the USSR. Therefore, the United States system represents capitalism while the former soviet systems represent socialism. These two systems the often regarded as representing extreme positions in managing the economy, but there are merits and demerits for each of them. For example, socialism guarantees the welfare of all members of the society, particularly the poor and working class. Capitalism, on the other hand, is considered as effective in inspiring creativity and development in the economy and society.
Socialism was mainly created to addresses the excesses of capitalism considering that in a capitalist society the welfare of workers or lower class are not guaranteed (Newman 21). Socialism is considered as a revolution of workers against the capitalist system. In capitalism, the system is considered as working from a few elites or noble people. Since they own the means of production they can exploit workers for their own profit. This creates an imbalanced system that rewards the rich by exploiting the poor. The advantage of capitalism is that it creates a system where individuals can own property. Therefore, people can work hard and enjoy the fruits of their labor. Socialism involves the communal or state ownership of property where all people work towards safeguarding the interests of the society. This creates equality because there is no exploitation. It also solves the problem of classes in society by creating one homogenous society. Although it is considered as creating an individuals it society, capitalism has several social benefits (Brander 67).
The social benefits of capitalism include empowerment, social development, harmony, and communalism. Capitalism helps create an empowered society because there is robust economic development that spirals into social development. Through capitalist management of the economy people grow in wealth and they give back to society hence guaranteeing empowerment. Social development is guaranteed in capitalism because of the robust growth of economy. When people have the right to own property, they increase their motivation and ambition. This creates room for social development and harmony. Socialism is very advantageous to society because it focuses all policies in the empowerment of society, harmony and equality in the distribution of resources (Newman 34).
Therefore, socialism is friendly to the general welfare and interests of the society. Socialism has been applied to destroy social classes that hinder the equitable distribution of resources. Under socialism, government procedures include welfare, social inclusion, fighting discrimination, and facilitating equal access to social amenities. A socialist state is effective in facilitating equality. In summary, capitalism and socialism define different frameworks of governance and management of the economy. Whereas capitalism is a western idea manifested by the United States, socialism is mainly advocated for by the former Soviet Union.
Capitalism creates a society where people own property and work hard for their success. Socialism creates a welfare state where there are no classes and all efforts are geared towards maintaining equality and social inclusion. Although all systems have social benefits, socialism is the best system for the sake of social benefits. Socialism inclines all governance procedures towards the empowerment of society and development of equality in resource distribution.