really need help with this problem....Anyone who knows about money and banking please help ?

Question

3. Socialists argue that, to reduce the power exerted by the owners of capital, the state should control the allocation of resources. Thus, in a socialist system, the state allocates investment resources. In a market-based capitalist system, financial markets do that job. Which approach do you think works better, and why? Relate your answer to the core principle that markets set prices and allocate resources.

Answer 1

People work harder when they are rewarded personally, which is why capitalism works. When socialism allocates resources, there may not be enough resources to go around: witness the long waits for healthcare in countries with socialized medicine.

Answer 2

Not all socialists argue that; many socialists reject the state.

Ben Tucker, "State socialism and anarchism" goes into this:

http://praxeology.net/BT-SSA.htm

"Proudhon and Warren found themselves unable to sanction any such plan as the seizure of capital by society. But, though opposed to socializing the ownership of capital, they aimed nevertheless to socialize its effects by making its use beneficial to all instead of a means of impoverishing the many to enrich the few. And when the light burst in upon them, they saw that this could be done by subjecting capital to the natural law of competition, thus bringing the price of its own use down to cost, – that is, to nothing beyond the expenses incidental to handling and transferring it. So they raised the banner of Absolute Free Trade; free trade at home, as well as with foreign countries; the logical carrying out of the Manchester doctrine; laissez faire the universal rule. Under this banner they began their fight upon monopolies, whether the all-inclusive monopoly of the State Socialists, or the various class monopolies that now prevail."

Answer 3

The socialists are correct: this will reduce the power of the owners of capital.

Is this a desirable goal? Will anyone be better off because of it?

Answer 4

Socialism has failed, it's not a political opinion, its just a plan, history based fact.

There must be a fine balance between government and corporations. Both are absolutely necessary, but neither one should have absolute power.

Contrary to popular opinion, america isn't completely a right-wing country. Its a center-right, the fine balance indeed.

Extreme right countries are former soviet, some african and some latin american countries where the government have almost no power.