Compare and Contrast Capitalism and Socialism Capitalism and socialism are both types
of systems in different societies throughout the world that have been successful at times,
but also not so fortunate in its success at other times in history. Both have their good and
bad points, although the main focus I am presenting will acknowledge socialism in better
terms than the capitalist economy. This is to judge which system will be most prosperous,
for the most amount of time, in the majority of peoples lifetimes. Also, opinions from
socialists are given to how they examine a capitalist society, and how capitalists examine a
socialist society. Criticism is given in each ones point of view, along with defending
arguments. Also, my personal opinion is the main conclusion to which economy is the
most prosperous based on facts contributed in my own research on both capitalism and
socialism. The definition for capitalism would be a form of social system that separates the
economy from the state. Laissez faire is another name that was given by Scottish
philosopher Adam Smith. He said it is better for a government to have no intervention in
the economy at all. Capitalism is based upon private ownership of property and every
person has the right to live his life in any manner he chooses, as long as he does not violate
the rights of others. Individuals are allowed to run their own businesses in a free market in
such way that he or she creates the wealth for him or her self. It usually depends on how
self-motivated a person is to determine how wealth they will become. If a person is always
working hard to make money, they most likely will, compared to a “bum” who can not get
welfare in this type of system. Capitalists believe that the only purpose of a government is
to protect its citizens from force or fraud. They claim that the force is the protection of
individuals rights. This is achieved in such ways as the use of police force to protect the
rights of citizens at home, a military to protect citizens from foreign attack, and a court
system to enforce contracts and settle disputes between residents. Capitalists also feel that
initiating force can only violate rights, thus the government only uses force in relation of
those who initiate it. For instance, if an individual can not start his own electric company,
it is a violation of his freedoms. A capitalists argument towards this statement would be
