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Outline: Essay question: What is the best policy for any country: capitalism or socialism? Introduction: Thesis statement: It is much better to live in the country where the gap between poor and rich people is sharply noticeable, than to know that a person will never differ from the mass of people or feel a real freedom in his/her own country. Body: A. Capitalistic policy gives an equal opportunity to everyone to become a wealthy person. * Person can have his own business and develop it in the future. * The nation becomes rich B. Market economy is the base of capitalism. * Foreign investments Business cycle. C. Advantages of capitalist mode showed by Adam Smith. D. Socialism lost its popularity in the last century Conclusion Policy is a very difficult question that concerns all people in the world. There are many countries with different policies, but the political war between socialism and capitalism worries most governments in the world. Socialism is not as popular as capitalism, because this system lost its great popularity last century. The main idea of socialism is working for some group of people. Consequently, if you work this way you cannot be an entrepreneur nor have your own business.
Socialistic government will never allow it. In such policy a person cannot be regarded as hard working, if this person works for him/herself, because someone’s work is only appreciated when this person works in some group and this work is directed to society’s benefit. Even though many people can say that capitalistic way of living, is very cruel because one of the rules of capitalism is “the most powerful will survive”, capitalism is a system that gives more freedom to people and day by day is increasing its popularity. So, there is a widespread opinion, that it is much better to live in the country where the ap between poor and rich people is sharply noticeable, than to know that a person will never differ from the mass of people and never feel a real freedom in his own country. Firstly, capitalistic policy gives an equal opportunity to everyone to become a wealthy person. Following such policy a person who has a strong character, knowledge and a huge desire, has a chance to try and make his own life better. There is nobody to forbid someone to have money and live a good life. Capitalism is a policy that gives a permission to have a private property and develop it.
The base of capitalism constitutes from the producing goods and services, from commerce and other types of legal economic activities. The development of capitalism started in 15th century. Exactly from this time in European countries people started to open first banks, stock exchanges and many other companies. From this time owners of different companies produced their goods, sold them, got money for their goods and put them into the bank accounts. From this time people began to understanding what it meant to get interest on their money on the bank account.
Of course, people may not have been so developed as they are now, but it was a very important progress in the world. 15th century was the time of origination of real business and entrepreneurship. This development had been continuing until the middle of 18th century. Historically, namely at this time the development of capitalism ended at all, but of course day by day all people witness a new development, and the economic world of capitalism will have some changes in the future. (Making capitalism more creative, n. d. ). Secondly, capitalism based on market economy, while market economy based on private property and business cycle.
Market economy is an important part of modern world. Business cycle is the mechanism of work of capitalism. This aspect almost makes capitalism. Relationships between money and goods are the main part of market economy. Capital turnover means making money from money. It means putting money to some business, that successful enough and entrepreneur is able to make profit. As the time passes, the profit is increasing, because the demand is going up, it means the market needs more products; consequently entrepreneur will give a demanded supply.
Thus, entrepreneur satisfies the demand and makes profits. Of course, there is nothing eternal and everything will lose its importance, but the mechanism of capitalism is great. (The history of capitalism: from feudalism to Wall Atreet, Beattie, 2011). To justify capitalism, such a great person as Adam Smith represented five main advantages of capitalism: 1. With little interference by the government, problems like corruption, lack of incentives and poor information do not arise. We end up with these problems only when governments attempt to control the economy.
This is one of the main benefits of capitalism. 2. Cost effective allocation of resources being the ‘invisible hand of the market’, capitalism ensures that resources are distributed according to consumer choice. No firm is rewarded for producing goods that people don’t desire. 3. Successful Production. One of the advantages of capitalism is that as firms have incentives to be efficient in production, in a market system, cutting costs, improving competitiveness and productivity are their top priority. They will go out of business if their efficiency and productivity fails. . Dynamic Efficiency. Firms in a capitalist system need to respond to the flux in consumer preferences and respond according to the new consumer trends. This improves and maintains their efficiency over time. 5. Financial Incentives. It is seen that people work hardest only when there is a potential for large financial reward. When there is a personal financial incentive, they take risks only then in setting up businesses. (Smith, “The Wealth of Nation”, 1776, p. 102-104). As far as the socialism is concerned, this policy has lost its popularity in the modern world.
There are only four countries where the socialistic party rules as a main policy, namely: China, North Korea, Socialistic Cuba and Vietnam. In the mentioned countries socialism was established officially. There are 1. 5 billion people who live in socialistic countries and it is 25 % of all world population. What does socialism mean? Bradley Thompson claims that socialism means ‘legal theft’ and self-sacrifice. People sacrifice their own private property and wealth, but sometimes if people do not it themselves, the government becomes to use organized violence and eliminates all opponents. There is an example of Soviet Union.
In the beginning of last century Lenin destroyed the dynasty of Romanovs, destroyed aristocracy of Russian people and created socialism mixed with communism, therefore capitalism disappeared. What had Lenin done? He annihilated aristocracy, rich people, private property, all business was nationalized, and Lenin took all wealthy people’s treasures forcedly and gifted everything to working class of Russia. It is obvious that people who worked and people who did not were equally provided financially, therefore there is an opinion that people who worked too much and people who did not do anything were on the same financial level.
For example in Soviet Union people could not show that they were rich, because all their treasures could be nationalized. The main idea of USSR was ??? ‘all people are equal’. During Lenin’s government, people in Soviet Union hoped that Lenin would save them from poverty, but as the history presented in 1921 Lenin offered a new policy, namely: new economic policy, which gave permission for private property, using someone’s work force and many other aspects of capitalist mode. Thus, Great Soviet Union had existed during for 74 years.
As regards modern socialistic countries, the meaning of socialism have changed and now socialistic countries work for the export, they provide with different types of goods not only their own nations, but try to make money and export their goods overseas. Of course private property is strictly forbidden and all people have to work for the increasing of living level of the whole society. There is a huge advantage in socialism that people do not fight because of financial inequality. People receive certain quantity of money for work that was done by them.
It is obvious that no one can be rich, but at the same time there are no absolutely poor people. The government will not allow the person to fall below certain financial and social line; anyway government will try to help. (www. spartacus. schoolnet. co. uk/socialism. htm) Overall, from my point of view socialist mode ruins any country and I agree with many people in the modern world who know about economy much more than me, that capitalism gives an opportunity for having better future.
Capitalist mode tries to increase the number of rich people in the country, while socialist one tries to decrease the amount of the same class in the country and create the one huge class named ‘middle class’. One day socialism will come to inevitable finish and disappear, but there is nothing that disappears fully. Something will stay and this something will become a new policy that is absolutely unknown for us. Second draft What is the best policy for a country: socialism or capitalism? Bakayeva Nazima ID: 20111366 [Academic Reading and Writing] Kazakhstan Institute of Management and Strategic Research 1. 11. 2011 Almaty Self-study work Grammar Gerund 1. The machine needs cleaning. 2. I am quite serious in saying that I do not want to go abroad. 3. He seemed sorry for having been inattentive to his child. 4. She confessed to having forgotten to send the letter. 5. The old man could not stand being told what he should do. 6. Going to the party was no use: he had no talent for dancing. 7. The Bronze Horseman is worth seeing. 8. After thoroughly examining the student the professor gave him a satisfactory mark. 9. After being thoroughly examined by the examination commission, the student was given a satisfactory mark. 0. She accused him of having stolen her purse. 11. She reproached me for not writing to her. 12. This job is not worth taking. 13. After looking through and marking the students’ papers, the teacher handed them back. 14. After being looked through and marked, the papers were handed back to the students. 15. These clothes want washing. 16. David was very glad of having found his aunt. 17. Excuse me for having broken your beautiful vase. 18. You never mentioned for having been to Greece. 19. She was proud of being awarded the champion’s cup. 20. I do not remember being asked this question by anybody.