and controlled by private individuals is known as Capitalism. Monopoly capitalist will lead to increased constant capital and as more and more workers become unemployed and due to further exploitation of labor through low wage rates there will be a revolution where the capitalist form of society will be replaced by the communist form. Third, governments and private businesses should work together in order to be able to build up the perfect employment system, where no one is left behind, this way firms and business will have their labours, and governments will get rid of unemployment. Moreover, the decisions belonging to the objectives are also taken by the authority only. Equality of opportunity to work; inequality of opportunity to own Forced duty to work and forced equality of results as determined by governing elite. This will boost the economy upwards and will open the market to the world, also importing less expensive goods and services than if manufactured by the country,.e. Capitalism and Socialism are both driven by strong ideals. Another great strength of a mixed economy is that it allows all individuals to run their own business and make their own profits but at the same time it then places responsibly non the companies by getting them to contribute towards the welfare of the. There is an equal distribution of income to bridge the gap between rich and poor.
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The gap between haves and have-nots are wider due to unequal distribution of income. Individualistic system Collectivist system, materialistic ideology and system which ignores the growing income insecurity and inequality Materialistic ideology and system based on and fostering the absolute dependency of all citizens on the state for their income security and well-being. It is, in essence, their focus. Also one of the disadvantages of capitalism highlighted by Karl Marx, it states that: The capitalists will face falling profit levels and the only solution to this problem will be increased exploitation of labor, exploitation of labor will involve reducing wages in order to attain. It really is pretty simple under capitalism you work, make some sacrifices and some hard but correct choices and you do well, you grow, your family gets some comforts. Conversely, in Socialism government decides the rates of any article which leads to shortages or surfeit. There are strengths of a mixed economy as well as socialism and capitalism. Wage system (jobs for the many, capital ownership for the few) Wage system (jobs for all, capital ownership for none). Both Capitalism and Socialism are grounded by the idea of fairness. Prices and wages are unprotected from global competition Prices and wages controlled by government. Also known as the free market economy or laissez-faire economy. Yet again there are also some disadvantages that go along with a mixed economy.