Economy Assignment

With the help of your textbook and Ch 23, please explain the differences among capitalism, socialism and communism.   Then explain the pros and cons that each hold.


In Capitalism the means of production and distribution are in the hands of the individual. In Socialism the means of production are in the hands of individuals, the means of distribution is in the hands of government. In Communism the means of production and distribution are in the hands of government.
Pros of Capitalism:

Capitalism promotes economic growth by providing an open competition in the market. It provides individuals with far better opportunities of raising their income and thus achieving economic growth.

Cons of Capitalism:

Capitalism makes an economy money-oriented. Business corporations look at the economy with a materialistic point of view. Profitability remains their only primary business goal. Business giants take over smaller companies. Employment rights are compensated with the sole aim of higher productivity.

Pros of Socialism:

In Socialism the wealth of the people is distributed evenly.

Cons of Socialism:

In Socialism the government is too strong in some aspects.

Pros of Communism:

There is the same standard for everyone, there is little crime because the law is strictly enforced, eliminates local cultures and hereditary elites, and a lot of communist countries invest in education.

Cons of Communism:

There is too much focus on the group, instead of the individual, you can't raise your standard without being corrupted and active in politics, no personal freedoms.