Capitalism and Socialism

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        If I were to name the one political, economic and social system that has made our country amongst the richest in the world, improved the lives of billions of people and that has fuelled and aided the human desire to succeed, that system would be capitalism. If I were further pushed to explain why I think capitalism is the system for all nations to adopt, I would simply state that it is the fairest system – much fairer than those ideologies that make that claim.

        Allow me to expand: the capitalist system allows for the free movement of money, goods and people. The key ideas of supply and demand set out in “The Wealth of Nations” by Adam Smith state that only the businesses which provide the best products will succeed. The theory of competition further set out by Smith mean that if and when these companies do succeed, they will still have to compete with each other for customers through high-quality service. This all means that the best goods will be sold at low prices with an excellent attitude towards customer satisfaction. Companies that fail to provide a decent service, or that set their prices too high, will be shunned by the market (i.e. the people) in favour of a better company. Now let's examine the alternative – the supposedly 'fair' and 'just' system of socialism. Under socialism, individuals are encouraged to look after their fellow man and completely disregard their own desires as part of an amorphous goal for the 'greater good'. When a socialist system is in place, man is not free. He is regulate, he is taxed and his money is spent by the government. Under the most extreme version of socialism – communism – the is one choice, there is one supplier and there is one price. There is no desire to make excellent products to attract more customers, there is only a need to fulfil monthly targets set by the government, and the cost of this need is often faulty products being sent out for fear of punishment by the authorities for failing to meet the targets. The cost for the people in this situation is surely obvious? There is no option to choose another company. Although this is perhaps an extreme version of socialism, the less extreme form still calls for high taxes on the rich, and a thirst for cooperation rather than competition. This hinders those with the desire to succeed – after all, why bother starting a company and selling your fantastic idea of a product and in turn get rather rich, if your eventual riches are going to be taken from you. When I say that taxes on the rich will be “high”, the perspective I am referring to is one of a 91% tax on income, such as the one implemented under the Kennedy Administration. Capitalism is the most moral system, as it caters to the natural, human desire to achieve.

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        A figure who expanded the frontiers of the free-market is somewhat a political hero of mine. That woman is Margaret Thatcher, who I still maintain was the last great leader of this country. She was a pioneer of that great economic policy – privatisation. Privatisation is the selling off of state-controlled industries on the market, and it works over nationalisation – the opposite – mainly for the reason that the market can decide which industries are needed and are profitable much better than the government, all through the theories of supply and demand.

        You may be wondering where ...

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