Essay of Different kind of Government Way.

Topic: Different kind of Government Way.

Introduction

This essay explores formal and informal economies by discussing the

differences between capitalism, socialism, and the underground
economy. Key characteristics, advantages, and disadvantages of
these economies will be covered so the different kind of politics as a
government form.

This information is to analyze that people have always lived under

one or another type of government policy, even under a
governamental appeal according to the advantages and
disadvantages of different forms of government, as in the case of
Nicaragua, those affected by social and economic well-being will be
the poorest societies, which will have no benefit by changing
governments a thousand times.

The important thing would be the most impoverished society is

getting to work and become entrepreneurs by combining the forms
of both socialist and capitalist policies in the process of personal
development, respecting the criteria of individual thought so that
peace can prevail

Body
Okay, let’s see how far we can get in illuminating the differences
between Fascist, Socialist, Communistic, and Capitalistic types of
governments and as types of economies.

Fascism as a Government

Unlike any of the other types of economies, Fascism is a type of

government. It is a government in which the corporations control the
government. The government is merged with the big businesses (and
their wealthy owners) and the purpose of government becomes a tool
to benefit the rich and the businesses and everything is taken from
the people to make it happen.

Fascism as an Economy

As an economy, Fascism is a system in which the people have no

control over the management of the businesses and have no share in
the profits. Under this system, the government quickly starves the
people, expecting then to work for lower and lower wages for the

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benefit of the rich. This always leads to revolution, often bloody and
expensive. And, this brings us to Capitalism.

Capitalism as a Form of Government

Capitalism, is not a form of government any more than the other

three. However, Capitalism is a hungry beast that will devour a
society if it goes unchecked. This is obvious in the USA, today.
Capitalism is devouring the people and the economy and the
government.

Unlike the risk of dictators in the other types of economies, there is

no power vacuum that attracts dictators, there instead is a small
group of rich and ambitious oligarchs who will try to take over control
of the government. When they succeed, they change the laws to allow
for fewer regulations on business, more tax breaks and welfare
(subsidies) for the businesses, and less and less services for the
people. They make it harder and harder and eventually impossible for
the people to have any say in their own government.

Capitalism as a type of Economy

Capitalism is best described as a system where money makes more

money. It’s where the rich get richer and the poor get poorer. The
system works great when there are good strong regulations in place
to stop the rich and powerful from influencing the government.

Capitalism works well with both Fascism (Capitalism out of control)

and Socialism (well regulated Capitalism) but conflicts with the true
tenants of Communism.

Socialistic Governments

Just like with Communism, Socialism is not a form of government, it

is a type of society in which people take care of one another and
people share in the management of their capitalism.

Socialism as Economy

As stated, Socialism is a type of society where the purpose of society

and capitalism is to benefit society.The workers play a vital role in
the management of the companies and share more equitably in the
profits.

There is plenty of confusion regarding Socialism. Part of the

confusion is in the Soviet Union’s reference to Socialism in their name,

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 Essay of Different kind of Government Way.

the Union of Soviet Socialist Republic. But, the USSR was an oligarchy,
much like America is becoming and this oligarchy was not interested
in letting the people share in the management or proceeds of their
businesses. The USSR was also nothing like a Republic. The USSR was
more Communism than Socialist.

Unlike Communism, Socialism works hand in hand with a strong

economy as well as a capitalistic economy. There is no conflict
between these two. Look at today’s China for a good example of how
Capitalism can coexist with other economic systems.

In Socialism, the workers can be actively involved in advancing a

Capitalistic agenda, for the benefit of the workers and for society.

When you hear the word, Socialism, think of the word it is derived
from, Society. It’s purpose is to allow society to be involved in
commerce, and not just as slave labor.

Formal and Informal Economies

'Economy' is defined in this lesson as the wealth and resources of a

region in terms of the production and consumption of goods and
services. There are two types of economies: formal and informal.
Formal economies consist of those driven by the market or
government, while informal economies exist without formalized
policies or regulations.

This lesson will discuss formal economy systems in terms of

capitalism and socialism and the underground economy, which is
considered an informal economy. We will cover the key
characteristics, advantages, and disadvantages of these types of
economies.

Capitalism vs. Socialism

Formal economies operate within limits of established and monitored

policies and regulations. Capitalism and socialism are formal
economies.

The major differences between capitalism and socialism revolve

around the role of the government and equality of economics.
Capitalism affords economic freedom, consumer choice, and
economic growth. Socialism, which is an economy controlled by the
state and planned by a central planning authority, provides for a
greater social welfare and decreases business fluctuations.

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Capitalist Economy: Key Characteristics

Capitalism is characterized in the following ways:

 It is a market-based economy made up of buyers (people) and

sellers (private or corporate-owned companies).
 The goods and services that are produced are intended to make
a profit, and this profit is reinvested into the economy.
 The government should not interfere in the economies of the
free market, meaning, the market determines investments,
production, distribution and decisions, and government
interference is only allowed when making and enforcing rules
or policies governing the conduct of business.
 There is a need for continual production and purchase for a
capitalistic economy to operate efficiently.
 Capitalists believe that government does not use economic
resources as efficiently as private enterprise.

The U.S. is considered to be a capitalist economy, along with most of

the modern world; however, economists are quick to point out that
almost every society has a socialist aspect or program within it.

Capitalism: Advantages and Disadvantages

The advantages of capitalism include:

 Consumer choice - Individuals choose what to consume, and

this choice leads to more competition and better products and
services.
 Efficiency of economics - Goods and services produced based
on demand create incentives to cut costs and avoid waste.
 Economic growth and expansion (which is possible in the
capitalist economy system) - This increases the gross national
product and leads to improved living standards.

The disadvantages of capitalism include:

 A chance of a monopoly of power - Firms with monopoly power

(when a specific person or enterprise is the only supplier of a
particular commodity) can abuse their position by charging
higher prices.
 Inequality - A capitalist society is based on the right to pass
wealth down to future generations. If a small group of people
hold all the wealth and that wealth continues to be passed down
to the same groups of people, inequality and social division
occur.

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 Recession and unemployment - An economy based on the

market of consumers and producers is invariably going to
experience growth and decline.

Socialist Economy: Key Characteristics

Socialism is characterized in the following ways:

 The means of production are owned by public enterprises or

cooperatives (the state), and individuals are compensated
based on the principle of individual contribution.
 There is equal opportunity for all. Large-scale industries are
cooperative efforts, and thus, the returns from these industries
must be returned to and benefit society as a whole.
 Economic activity and production are planned by the central
planning authority and based on human consumption needs
and economic demands.

 Socialists believe economic inequality is bad for society, and the

government is responsible for reducing it via programs that
benefit the poor.

For example, in the U.S., we have Medicare, social security benefits,

and social nutrition assistance programs that are considered socialist
in nature.

Socialism: Advantages and Disadvantages

The advantages of socialism include:

1. There is a balance between wealth and earnings.

One of the advantages of being in a socialist country is the availability

of basic services to members of the society who are below the poverty
line. This is because industries such as utility companies and housing
are owned or controlled by the government. Whereas if these companies
are owned by private sectors, prices for services is unregulated, making
them costly. When it comes to taxes, this form of government also
protects low income earners in a way that their taxes are lower as
opposed to high earners who have higher taxes.

2. There is equal access to health care and education.

As opposed to capitalism with high health care and education

costs, socialism makes education available for every citizen
regardless of social class. Moreover, members of the
community have access to medical attention since health care

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 Essay of Different kind of Government Way.

costs are more affordable. This is due to the fact that the
government owns health care facilities and hospitals as well as
medical services which are offered for low costs or free.

3. It breaks down social barriers.

There is a distinct separation between people in the upper class

and the lower class and socialism ensures this is evenly leveled
to bridge the gap between the rich and the poor members of
society since there is communal ownership.

List of Disadvantages of Socialism

1. It runs on bureaucracy.

One of the disadvantages of being in a socialist society is

bureaucracy that hampers the delivery of services to people.
This is because people have to pass through different
channels to access basic services. As a result, they are not
given immediate service or assistance that should be
accorded to them.

2. People are unmotivated to develop entrepreneurial skills.

With the government controlling most of the industry

sectors, people who want to capitalize will be discouraged
to do so since they know that the government will have a say
on their businesses. This is also because they are aware that
if they earn more, they will be subjected to higher taxes.

3. The government has too much control.

With socialism, apart from communal ownership and the

government being in control of certain industries and
facilities, people feel that they are dictated upon on how to
live their lives, where they live and how much they should be
paid for their services and goods.

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 Essay of Different kind of Government Way.

Socialism centers on common ownership and this can either

go for or against the people in a society or nation. This is
why since the global crisis almost a decade ago there have
been talks about reviving socialism. But is this really the
answer? Weighing the pros and cons and hearing what the
people have to say are two important actions to be taken by
the government.

Conclusion
While some groups are considering the establishment of a socialist world,
there are also other groups opposing the socialist idea.

Since the global economic crisis started in 2008, people began

thinking of ways to bridge the widening wealth gap within and among
nations. As capitalism becomes unpopular, talks about renewed
interests in socialism start to surface.

Socialism can be defined in two ways.

First, it is an economic system which centers on common ownership.

In this system, the government mandates production and prices. Also,
private ownership of property is not allowed. Equality is significant
for socialists that distribution of wealth and production belongs to
the community. Moreover, production is done for use unlike
capitalism wherein production is for profit.

Second, socialism is a political system with a classless society where

there are equal power relationships among people.

Socialism exists to bring about equality to a nation and to push for a

classless society. In some aspects, it has benefits but the fact still remains,

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not all are happy with the idea. Just like in any form of government, there
are good and bad sides. Absolute socialism might be too much although
democratic socialism can work. Will it be a good thing to bring it back again
when the nation is in an economic crisis? The people and the government
should weigh its pros and cons beforehand and look at how it has affected
nations in the past years.

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