Explain the difference between capitalism and socialism. (This essay is mostly about definitions and examples, although I will ask you to make a moral judgment at the end).
Begin by defining the difference between capital goods and consumer goods, and between capitalists and laborers. Illustrate your definitions with examples of each.
Then, define capitalism and socialism. For your definition of capitalism, be sure to distinguish between “pure capitalism” and “welfare liberalism/welfare statism.” They are both forms of capitalism, but how are they different? For your definition of socialism, be sure to distinguish between “totalitarianism communism” and “anarcho-socialism/syndicalism.” They are both forms of socialism, but how are they different.
Identify and give examples of how America is primarily a capitalist society and economy. Then identify and give examples of some socialist (or at least welfare-liberal) elements in America.
Briefly explain how capitalism has generated staggering material prosperity at a scale never before seen in human history. Finally, consider that while technological innovation is an essential part of capitalism, it also takes away people’s jobs. Some of the people who lose their jobs to technology were not ready for retirement, but may be too old to start a new career. Do you think the government (or the person’s previous employer) should support these people, and if so, how much? Which of the systems discussed above would most agree with your view on this matter?