Answer:
Discuss the three essential features of capitalism as well as the three essential features of socialism.
Capitalism:
- Private property: individuals can hold property for which they have exclusive ownership. They are free to do as they please with their property.
- Market economy: for capitalism to flourish, a market economy must exist. In a market economy, consumers and producers determine the price of goods and services through the forces of supply and demand.
- Accumulation of capital: capitalism permits the accumulation of capital, a tendency which tends to relate with wealth concentration.
Socialism:
- Social ownership: in socialism, private property does not exist. Instead, property is evenly distributed among social groups.
- Planned economy: socialism is characterized by planned economies: the production of goods and services is determined by the government, instead of the market.
- Income equality: socialism tends to produce societies that have a more equal wealth distribution (not necessarily more wealth).
Does a pure form of capitalism or socialism exist in the world today?
No. Not even very capitalist countries like Singapore have a pure form of capitalism. As for socialism, not even North Korea has a pure form of socialism. Some forms of market economy do exist there.
Do recent events around the world suggest the emergence of a new economic and social form, one which blends capitalism and socialism?
Not necessarily because this form already exists. Most countries have mixed economies where aspects of socialism and capitalism coexist. Capitalism is preferred for the production of goods and services, while socialism is preferred for the redistribution of wealth.