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A Balanced Economic State

  • Date Submitted: 01/28/2010 06:29 AM
  • Flesch-Kincaid Score: 46.2 
  • Words: 1460
  • Essay Grade: 4,00 /5 (1 Graders)
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Two main economic systems have been developed since the Industrial Revolution, these are Capitalism and Socialism. Both systems have advantages and disadvantages, this essay will explain these, and also give my proposals for a mixed system for the whole society of the United Kingdom.


Capitalism generally started as an economic system in the United Kingdom at the time of the Industrial Revolution. The basic explanation of Capitalism would be to say that

'the economy is left to its own devices with no Government intervention'.

A Capitalist economy is a market economy where all economic decision making is decentralised, and the Government will only supply national defence, administer justice and provide certain public works.

The goods that are provided in a Capitalist economy are decided by individuals who choose how to use their labour and spend their income. All resources are privately owned and will only be used for obtaining the highest profit.

Advantages of Capitalism

There are many advantages to a Capitalist economic system which could make it very appealing to society.

The system allows the powers of market forces to operate which in turn gives the consumer a wider range of goods and services. Also because producers are always seeking the highest profit they must try to please the consumer and win their custom. This leads to innovation and greater quality and variety.

The firms which produce the correct goods and services will win custom and make profit, those which don't will go out of business and therefore release their resources to the successful firms. This will lead to the expansion of the economy and greater prosperity.

In summing up the advantages, it is clear to see that the consumer has the power to dictate the goods in the...


Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. Agree
    • Oct 31, 2011 - Evaluator: (appuchan)
    • Both capitalism and socialism has its own merits and demerits and cannot be considered as one against the other. I am a big believer of the welfare state model adopted by many European countries where the basic public services such as education and health are provided free by the government. Most of the other areas are completely opened to the market demand and private investors are free to run them as they like. Socialism, in its pure form, believe that all people are equal which is a completely false assumption to start with. It does not allow talented people to come up in life and do what they do best. It treats people as machines and intervenes in their every day life, even to the level of deciding what bath soap should they buy. Companies are given permission to produce goods in pre-defined numbers and must sell them at a pre-determined cost. Capitalism on the other hand, is the other extreme, where everything is left to demand and supply This can be harmful for addressing the basic needs as the business will be focused more on increasing profit margins than increasing reach of those services. This they do by making their services unaffordable for the vulnerable sections of society and providing sops for the rich class where they can up-sell and cross-sell different value added offerings..