These are two different ways that address the different ways of treating an economy. Both look into the way the government is involved in the economy and the effects of the involvement on the quality of the economy. For the socialists, they believe that the main problem with the economy is on the inequalities. They believe that it is a bad vice for the society, and it is the role of the government to try and bridge the gap between the haves and have not’s. This can be done by putting in place government policies and programs that benefit the poor and make it available, accessible and affordable for all to access basic needs like health care. Most of these programs include taxes based on the income where the poor paid less tax, free public education and subsidized of free education. On the other hand, capitalists look a lot into how the government spends or utilizes the available resources. They believe that most of the governments fail in their investment choices and, therefore, affecting the economy negatively. They fight tor the privatization and establishment of free markets that will be left with the power to determine the markets giants and losers.
Criticisms of Capitalism
This ideology campaigns for utilization of capital. This leaves the majority of the people who have no access to capital resources at stake. Few people can invest and this leads to widening of the gap between the social classes. Despite this, only very few people will own businesses that lead to monopolies and oligopolies. Wealth will be available to the few people that have the labor resources. In the end, it leads to fascism and oligarchies. Such an economy is not good as the minority wealthy will have a lot of power to an extent that they control the government. Capitalism will also lead to a very unstable economy because only a few people or organizations control the economy.
Criticism of Socialism
Socialists tend to focus on the wellbeing of the whole community and an individual. They also focus on a controlled economy with intensive government intervention. This creates a problem in that there is no autonomy as all the market decisions are not made by taking account of the market but with the interest of the economy at mind. There are very many claims that a substantial number of socialistic economies have not done well. This is because the will to work hard is harm by the nature of rewarding system in the socialistic economies.