Discuss the benefits and problems of capitalism and

socialism, and evaluate which system provides the

greater overall benefit to society.

Write a clear claim that responds to the prompt.

Economies can be classified on basis of policies and regulations. The major difference between capitalism and socialism is the role of government ion regulating the economy.

Capitalism is characterised by economic growth and economic freedom, it functions on laissez-faire principle and in free market economies there is no government interference in the economy. While socialism depends on the control of the economy by the state. A central planning authority plans it to provide social welfare. The country / economy having qualities of both Capitalism and Socialism is better than purely socialist and purely capitalist one.

Monopoly of power, Inequality, Recession and unemployment are some disadvantages of Capitalism while lack of motivation, less entrepreneurial opportunity and competition are disadvantage of Socialist economy.

Capitalism provides more benefit to society because it gives people more choice, allows people to create more wealth, and ensures that what society needs is produced.