Utopian society where all your needs are taken care of by someone else sounds wonderful to many people. In a socialist society, everyone is taken care of, given a job, and the government handles the “business end” of things. Capitalism, on the other hand, is a very different society model where citizens are pushed to success by their own merit, production and prices are based on supply and demand, and business models are efficient.
This sounds like a lot of work, but is better in the long run. While Socialism has some benefits, Capitalism is a greater system of society as it allows citizens more control in their own society.
Most importantly, capitalism pushes citizens to create their own wealth through competition. You are what you choose to be. If you wish to own a business, you can. If you desire to make more money, you can. If you desire to gain further education or training to get out of a low level job, you can. In a capitalistic society, those who work hard move ahead. Those who desire to push themselves will reap the benefits they, themselves, have sown. In a socialist society, everyone works for the greater good.
Even if it’s not a particularly important job, you have one. The main idea behind socialism is equality – to lessen the gap between rich and poor. Then, some may say, that because of the competition-based mentality of capitalism, it creates an equality gap. This is true, there is a huge gap between those who are extremely successful and those who are barely scraping by. However, those at the bottom have the opportunity to become better – if they desire and have the drive to do so.
Secondly, the two society models differ in who controls production of goods. In a socialist society, the government controls production of goods and also implements price controls. Because of this, you either pay the price for the item or do without – there is no searching for a lower price at a competitor. Again, it’s the idea of being equal and fair. In a capitalistic society, production of goods is done by private businesses, not the government.
Therefore, production of goods and their costs are based on a supply and demand system. This creates a greater possibility of wealth because if you produce a good product at a fair price, people will buy it. A downside that can arise in a capitalistic society is that of monopolies in business. To that we can refer back to the first idea of striving to be better (than your competitor). If there is a company that makes a product and they have a corner on the market that you’re not happy with, simply create a better product or one at a better price. The opportunity is there for you to achieve in a capitalistic society.
Lastly, since socialism and capitalism differ in how they produce goods, there is also a different mentality behind their production process. Capitalism is concerned with making the most profit, so business models are more efficient than those in a socialist society that are run by the government. Businesses in a capitalistic market are concerned with making as much profit as possible. Therefore, they will streamline their business practices so that they can produce the best product possible for the lowest price in order to increase their profit.
Oftentimes in socialist societies, where the government controls production, there are no incentives to streamline business. You make the same amount of money, whether it takes you two days to create a product or a week. Some may say that the hunt for the almighty dollar in a capitalistic society causes businesses to cut corners or do sloppy work. This can certainly happen, however that business will find that their consumer base disappears if they are producing less than quality work. Which again, pushes us back to the first point of competition in a capitalist society.
In the end, while socialism sounds like an idealistic society in which no one is poor, everyone has a job, and food in their stomachs, one will find there are many flaws to the system. Instead, a society based on capitalism is a far superior model because it creates a culture of competition to succeed and achieve, allows companies to create products based on demand and prices based on supply, and lastly keeps businesses streamlined and efficient. While there are obvious possible downfalls to this type of society, it is still a superior option to a society in which you are told what you will be, have no opportunities to change that, and everything is controlled by the government.