Capitalism

    There are two types of socioeconomic systems: capitalism and socialism. Capitalism means free-market competition, private or corporate ownership of production and distribution, and personal responsibility. Capitalism produces innovation and variety in the marketplace with high-quality goods and services at reasonable prices.

     Socialism means that a few people, those with political and economic power, are in control of production and distribution. Socialism results in stagnation, limited goods and services, low quality, fixed prices, and dependence on the government.

     The establishment of capitalism was a time of upheaval and bitter struggles between new and old power-brokers. At the same time, the mass of the population were dragged unwillingly into an increasingly violent conditioning process. The new capitalists needed to be able to exert ever more pressure on their producers to produce more for less, so that the capitalists could maintain trading prices and increase profits. They looked to the state to ensure pressure was brought to bear on workers who, for the first time, were being forced to sell their labor in an increasingly competitive work environment, which was itself aggravated by the swollen ranks of the new landless and unemployed.

     A look at the history of the economic and social conditions that pre-dates the industrial revolution shows that capitalism arose from the systematic breakdown of feudalism as a social and economic system and the imposition of a wage labor system in its place. Capitalism soon spread to Europe, and to the rest of the world.

     The coming of capitalism has also brought with it the potential for workers to organize for change. Though capitalism brought with it untold misery, ordinary people were far from passive victims in the face of exploitation. Instead, they sought to resist capitalism, giving birth to the idea of an alternative world, free from exploitation and misery.

     Capitalism helps the economy to grow, rewards people on their successes, and incentivizes individuals to work hard. The free market competition allows only superior produce to exist in the market and for this, everybody has to work hard for survival which ultimately leads to better performance. On the other hand in socialism you get.