Capitalism
- Production according to the needs of consumers
- Economics freedom
- Efficient utilization of resources
- Greater variety of consumer goods
- Enchanced trade , business , and research and development ( R & D )
- Automatic incentives
- Flexibility
Socialism
- Production according to basic needs
- Equitable distribution of income and wealth
- Better allocation of resources
- No series unemployment or recession ./inflation
- Rapid economic development
- Social welfare
Demerits
Capitalism
- Inequality of distribution of wealth and income
- Inflation and high unemployment rate
- Lack of social welfare
- Unnecessary variety and wasteful competition
- Misallocation of resources
- Social costs .
Demerits
- Lack of incentives and initiative by individuals
- Loss of economic freedom and consumer sovereighty
- Absence of competition
- Waste of economic resources .
No comments:
Post a Comment