ReflectionPaper x

Running Head: REFLECTION PAPER 1

REFLECTION PAPER 3

Reflection Paper

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Is there still any conflict between capitalism and other economic ideologies (Communism, socialism, social capitalism)?

Having clearly understood the capitalism economy as a type of economic ideology that often carries a broad definition in business, I believe that it is poses conflict to the other economic ideologies. Capitalism is an essential type of economic systems because it has the sufficient potential to permits business owners to engage fully in numerous economic activities. For instance, capitalism allows the entrepreneurs to possess economic resources and also to make critical decisions about their business interests. In my opinion, I think that the laissez-fair economy is quite essential because it provides business owners with an opportunity to produce goods and services and to keep the achieved profits to themselves, which is an important aspect to increase competition in the corporate world. In my opinion, the stiff competition fostered by the capitalism economy significantly increases the quality and quantity of consumer goods and services. Despite the illustrated benefits, other economic ideologies focus on other advantages, hence; creating a rift between them.

Adam Smith is recognized for developing a free market economy when he was reviewing the effects of supply and demand and I pretty much agree to the various insights he provided on such an economic structure. An important aspect that I find worth noting is that the capability of making critical business decision is typically influenced by the stipulated rule of law governing a particular nation. I believe that the availability of such law offers adequate protection to the rights and freedom of the business owners when freely engaging in numerous economic activities. This brings us to one of the primary conflicts common between capitalism and socialism economic ideologies. In my view, government intervention within the economic system poses a great conflict, especially between the capitalism and socialism. I suppose that despite the lack of government intervention to the capitalism type of economy critically leads to improved innovation. Based on my professional perspective, the capitalism economy, for instance the one adopted in most of the developed nations, is not only linked to the increased innovation, but also assists in creating wealth and also in regulating corporate behavior of many enterprises.

According to numerous research studies, the capitalism economy leads to liberalization of the market forces, an aspect which makes me believe that it promotes freedom of choice and eventually translates to success or failure. When socialism economy is compared to the capitalism economy, I would say that the major difference is that the socialism is characterized by state- based business services that depend on central planning, intending to make the society to be more equitable. According to my opinion, I think that the lack of government intervention fosters the capitalism economy to shape the society and life of a nation. In my view, the best way that governments have used to maintain a balance between the conflicting socialism and capitalism economic ideologies is by adopting a mixed economies. The mixed economy involves various activities, such as, the government intervenes the economy to ensure that it control monopolistic stance and that both the individuals and the government own the resources.

I also depicted a conflict existing between the capitalism and communism as well as capitalism and the social capitalism. I reckon that, unlike in the capitalism- based economy, the communism is responsible for enlarging the gap between the rich and the poor related to such things as increased exploitation of the employees. The aspect of restricting private ownership in the communism economy does not auger well to me because it knocks people out of competition with less concern on the associated consequences. At the same time, I believe that social capitalism only dwells in solving the social issues that are based on equality, liberty, and justice when making a profit. To me, this is not a significant reason for there to be a rift between the capitalism and social capitalism economic structures. Drawing upon my professional experiences, the people must be allowed to control the economy and share property.