The pros and cons of socialism and capitalism have led to arguments and critics by people who view the two in different and antagonistic perspectives. According to the current situation of the American economy, the two economic systems may be of great importance or disadvantageous in many ways. First, capitalism is of great importance as it leads to the increase marketplace opportunity for an individual to experience personal economic growth. This makes it important for entrepreneurs to boost their personal as well as for societies to grow well. Under this type of economy, hard work is rewarded accordingly (Lichtestein Creating Media, 2006). Consumers, in this type of economy, have the opportunity to work towards personal riches, as well as financial freedom. A point to note is that markets usually result from a capitalist economy. American economy at the moment requires more competition, especially in the innovation and technological sectors. This will be of great importance to further economic development and growth of the American economy. Looking at the great American companies which are technology based such as Apple and Facebook, it is cogently true that innovation, a production of capitalism has contributed a lot to the development of the American economy. One of the strengths of a capitalist economy is that it companies and consumers do the regulation of the free market. Conclusively, capitalism in the American society is seen as a rapid growth catalyst. Capitalism usually comes up with the strange features of narcissism in individuals who possess the monopolistic behaviors (Lichtestein Creating Media, 2006). Companies, such as Apple, have built a good image of the US making it one of the spots where innovative minds operate successfully. This has formed a foundation for narcissistic feelings among most Americans over other countries, especially the less developed ones. Americans view themselves as people who love themselves and are willing to do their best in innovation.
The private media do appeal to the emotions thus becoming harmful to the society. Moreover, the larger monopolies encourage conformity thus discouraging individual or small investors. Capitalist economies are usually money driven in nature with no regard to people who are not shareholders or owners of business firms. As stated earlier, capitalism encourages monopolization of the market by few individuals causing fierce and unfair competition among the traders. This can be dangerous as the few individual traders may take advantage of the market and provide goods whose quality or standards are compromised. In a capitalist economy, big companies get bigger as monopolistic behavior take place to its maximum level. There is unfair labor practices as companies are driven solely by their profit motives. Considering the fact that capitalism does require a continual growth, occurrence of environmental damage may be possible because most of the earth resources may be depleted. The US, as a nation, capitalism is considered a danger and a threat to the steady economic growth of the country (Lichtestein Creating Media, 2006). The US itself depends of private investments and innovation for the purpose of growing its economy. Capitalism actually makes the rich people become richer and the poor become poorer. As discussed, capitalism can create bad images to the country as it encourages individualism among the people of one nation against the other. This forms the element of narcissism, in the negative perspective.
Socialism, on the other hand, seeks to enhance equality of people within a country by ensuring provision of similar social benefits. Such benefits are healthcare, education, caring of the elderly and the vulnerable people in the society. Socialism basically means paying for things without an expectation of a financial return. It is a way of attaining a slow but peaceful development. In addition, the quality of life is improved in any socialistic society. This is because virtually all the crucial services are provided by the government in return of the tax being paid by the citizens. The US is one of the countries where paying tax is mandatory for all citizens. The tax payment organization and procedure is also excellent and nobody can easily evade payment of tax. This gives the US government easy time to plan the economy. Therefore, socialism is crucial to the US for the progress of the economy. Another importance of socialism is that political policies become more and are based on reasoning; not other non-ideological factors. Since socialism aims at promoting national development, when successful, it portrays some elements of individualism and self love at the national level. Americans will tend to view themselves superpower compared to other countries (Lichtestein Creating Media, 2006).
Entrepreneurs, after coming up with business ideas should be logically accountable to the profits that come out of the business. However, socialism does not allow any form of individualism in the provision of goods and services. Instead of rewarding them for wealth creation via their ideas, socialism does punish entrepreneurs by charging them high amount of taxes depending on the type of business being conducted by the entrepreneurs. In other words, socialism makes people shy away from creating for themselves jobs because of the heavy taxes. In the long run, socialism lowers the people’s living standards because of failing to reward hard work and making public assistance available to even more than the needy people within the society. The economy of a socialistic society can become static due to lack of entrepreneurial practices within the society. Laziness is also encouraged because people are shy of starting up businesses. The resultant effect of this is significant decrease in the American economy. Socialist societies look serene but most of them are sometimes very boring. In other words, a socialist society does not allow people to be creative because it may lead to discovery of a given idea. A scientist would always need permission or authority from the government in order to do anything related to his or her work. Fields such as scientific practices requires one to reason out his or her points or ideas well before taking them to the government for approval. The government may not have the idea on what is happening in the experiment or study but its main point is to freely hinder scientific activities (Lichtestein Creating Media, 2006). In this case, scientific discovery is seriously hindered. Moreover, economic conformity has unique characteristics that encourage other several conformity types. Therefore, under very little cases, that socialism, to some extent is of any importance to the American society. It will interfere with the American dream
Socialism does not allow independency in an individual. They play the game of pretence by involving people in awkward situations which logically does not allow them to publicize success. The essay has outlined lucidly the various pros and cons for the purpose. It has also outlined how the pros and cons are comparable to some incidences. Capitalism and socialism are economic systems that have direct influence on the success or failure of the country. When succeeded, the two create elements of narcissism among the Americans viewing themselves as hardworking and successful in comparable to other nations.