The issue of economic systems of socialism, capitalism and welfare state always stirs some mixed feelings in me as I try to understand which among the three is better suited for the common citizens. In my early years of studying the economic systems capitalism interested me since it is a system whereby the raw materials are privately owned.
Discussion question.. Is capitalism a necessary evil?
Capitalists rely on the law of supply and demand which implies that if by any chance demand for a good goes up, the prices will follow suit, this economic system saddens me, this means that if demand for a basic good goes up, automatically the prices will skyrocket. What will happen to the poor people who live on less than a dollar a day? Their salaries do not increase so they will be forced to dig deeper into their empty pockets. Sadly, this is the kind of system that we live in whereby if demand for a certain good goes up the prices shoot high up too. Recently there has been increase in oil prices due to its high demand. Citizens such as me tend to suffer the most since our wages do not increase to cater for the increase in price. Capitalism is not necessarily a necessary evil since we can do away with capitalism for the sake of the ordinary citizens.
Socialism on the other hand has always been my favorite economic system since in this system; the raw materials as well as the processes of production are publicly owned. This will imply that a government should be the one playing a central role on behalf of the people as a whole. I tend to find this system comforting since human needs are taken into account, personal gain is also forbidden and therefore it is a system for the people.
I always believe that the welfare system is the best since it consists of raw materials being owned by both the public and the private sector and therefore all of them will work together to have both profit and human needs met.