Why socialism fails and capitalism thrives?

Question

I came from a post socialist country where they do not allow individuals to be enterprising and gain wealth. After 20 years the state enterprises failed to provide what we need. Now it is open to market economy but lacking in government assistance in many sectors for poor people. US compared to Russia and China has achieved much higher standard due to encouraging individual efforts. Do you believe that capitalism is the best for all countries.

Answer 1

Socialism fails because it results in these attitudes.
Why should I do anything if you are going to do it for me?
Why should I do more if I get the same?
Why should I care if you don't?

Answer 2

Capitalism must be constrained by law in order to function. This country has been wrenched through a few wringers along the way - such as the trust-busting needed in the 1890's or the great depression.
Matter of fact - our free economy is cyclical, and will undoubtedly go bust again. When it does, as it has before, property values will drop, employment will fall, foreclosures will increase, business bankruptcies will increase, and maybe some banks or lending institutions will fail.
This is why our "socialistic" features are needed - when the elderly lose their savings overnight and their house becomes unsellable - a social security guaranteed income is the only thing left for the elderly, who can no longer work to rebuild savings, to live on.

Answer 3

No. I do not believe capatilsm is best for all countries. There are plenty of poverty stricken people in the United states. I myself live below the poverty line and consider myself lucky to have what little I have. The thing about free trade is that its a pyramid scheme. A few people with all the goods selling them to people who sell them to people who sell them to other people. All in all any one product has turned prophit formore than 20 people/companies and has been jacked up in price so many times that consumers have to pay a huge percentage above manufactured cost for everything from clothes to groceries, furniture, cars and even utility services.
The other thing about capitalism is credit. Everyone pays twice the retail price for something because they cant afford to buy it outright. We've happened to forget that credit was what instigated the great depression. Here we go again.
Then there is inflation, which causes interest rates to spike and fall, causing credit to be a crap shoot. You can afford it today but what about tomarrow? One can only hope...
All this to increase the value of the dollar, yet a dollar doesn't get you what it used to these days. When I got my first car gas was 64 cents per gallon. That was less than 10 years ago.
Capitalism thrives because its everyone for themselves. Sink or swim. If you cant make it then you fail, and there's no one to turn to. Which means also that those who come from a less-than succesful family its twice as hard to move up compared to someone who comes fromk a wealthy family.
grrr. I hate it. How is a catracted employee any different than an endentured servant?

Answer 4

Socialism usually fails because the government usually controlls most aspects of the economy. People are motivated to do their work mainly be force or fear. Therefore they only produce what they are requested to and their is no guarantee for quality. However, in capitalism people are motivated by profit. Because they are motivated by this and there can be privately owned businesses, capitalism usually works well. However, the communist country, which is similar to socialism, of China is very successful, proving that capitalism is not the only proven economy system.

Answer 5

capitalism takes into account the fact that humans are greedy and do not realy care about others or sharing. so it works well. it harnesses this greed instead of ignores it as does communism and to some extent socialism.

it may be the best solution for economic problems but also may cause some social problems or make them worse or fail to deal with them. so it needs to be modified a bit to cover all of humanity and not just the successful businessman.it needs to provide for the good employee worker who is the engine of calitalism. if you fail to provide for him then he balks and the system stumbles. if you give him everything he wants( all of it) the system fails too.
profit sharing is a good way to keep him happy without hurting the business too much.
also it helps to give him shares of the business for his profit sharing instead of cash so he gets more and more invested and stays interested in the company success.also encourage beginning capitalists with loans and training.
capitalism must be regulated for the public good without killing the incentive of the business owners. it is a balancing act.
must teach capitalism in school.

Answer 6

Socialism fails because there is no incentive for individuals to succeed. There's no point.

Capitalism thrives because it rewards individuals for success. If you invent something, it's yours. If you work hard, the money you earn is yours. And capitalism gives people the freedom to be creative, to come up with solutions and new ideas.

Call it whatever you want, but if you give humans no reason to succeed or work hard, they won't. And the success or failure of a country is entirely dependent upon its individuals.

Answer 7

Socialism fails because money all goes to the government without distributing it to the people while capitalism encourages the participation of the people in the economy making both people and government earn their respective money. In socialism, people are not free while in capitalism thrives because people have freedom to choose what they want.

Answer 8

Sweden, Canada, England, ect Capitalism is the economics of greed, pure and simple, some get ahead, many fall behind.

Answer 9

While socialism may seem the best on paper, people can't accept that they are entirely equal, so reality prefers capitalism.