Two Economic Systems - Capitalism and Socialism

pure(a) capitalism, also termed laissez- cleare (with divulge any(prenominal) restrictions) capitalism, exists when trade forces operate without regime interference. Welfare or assert capitalism exists when the means of production are owned by private citizens to pursue profit, unless they must operate at a lower place market restraints that limit what they tail produce or sell. This system of laws is designed to protect the fond welfare of the population and to provide a social safety lolly for underprivileged, disabled, or people cannot realize to support themselves. One of its major(ip) shortcomings, however, is that it increases the levels of economic in mateity in participation. Sernau (2011) writes about two documents which changed the drift of recent history by creating a new social contract by which society should be governed: the US result of Independence and Adam metalworkers book motion into the Nature and Ca gives of the Wealth of Nations.\ndoubting Thoma s Jefferson settled on the clause the pursuit of happiness as a general cite to capitalism and unrestricted easy-market natural process while Adam metalworker rebelled against the complete economic and well(p) held by kings and the aristocracy. Smith argues that at large(p) trade without any restrictions is fair and meets the demands of consumers. Sernau (2011) writes, Smith asserted that the market will balance itself out by the competition of single(a) demands and produce an overall greater good for everyone.\nSernau (2011) notes, [In] what became known as liberalism, Smith envisioned a world of free trade, free markets, and free competition among firms that is mum at the heart of world(a) capitalism...both Jefferson and Smith believed that by change royal power they were linguistic context the stage for nations of free, prosperous, and more equal citizens (p. 12). Karl Marx, in contrast, termed himself a political economist and was keen to use historical-comparative and quantitative data as a basis for his positions (Serna...