In what ways can capitalistic and socialistic economies converge?

Question

Social Studies

Madeleine Griffin

31 October, 07:15

In what ways can capitalistic and socialistic economies converge?

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Answers (1)

Know the Answer?

Coby Valencia · Answer 1

- What they consider as primary economic force

- Both of them favors democracy

Explanation:

Both capitalist and socialistic view of economic believe that Labor is the primary force that keep the economy going. The difference between the two is how to value those labor.

Capitalist tend to believe that reward for labors should be determined by the market without any government intervention. Socialistic economy on the other hand believe that government involvement is needed to regulate the labor.

Both of them also favor democracy. The only difference is that socialistic economies prefers government to be more involved in wealth distribution in the forms of welfare policies.