Comparative Analysis of Socialism and Capitalism

The assignment aims to analyze the impact of socialism and capitalism economies on humanity by selecting 50 people from London, UK using random sampling method. A questionnaire is designed to gather information on their preferences, opinions, and experiences with regards to these economic systems. The data analysis reveals that most respondents have been living in the UK for more than six years, indicating satisfaction with the current economic system. Additionally, 60% of respondents prefer a socialist economy, citing freedom of speech and equality as reasons. In contrast, 80% of respondents believe that people are forced to follow instructions in a capitalistic economy. The findings suggest that socialism tends to impose a more positive impact on humanity than capitalism.

DISSERTATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Title..............................................................................................................................................1
Background of the study..............................................................................................................1
Purpose of the study.....................................................................................................................1
Scope of the study........................................................................................................................2
Research aim and objective.........................................................................................................2
Research question........................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Introduction to economy..............................................................................................................2
Concept of socialist and capitalist economy................................................................................2
Feature of socialist and capitalistic economy..............................................................................3
Theoretical context regarding impact of capitalist and socialist economy on humanity.............4
RESEARCH METHODOLOGY....................................................................................................5
Research design...........................................................................................................................5
Research approach.......................................................................................................................6
Data collection.............................................................................................................................6
Sample and Sampling..................................................................................................................6
Questionnaire for the people of London, UK..............................................................................6
Data analysis................................................................................................................................8
Limitation of study......................................................................................................................8
DATA ANALYSIS AND INTERPRETATION.............................................................................8
Thematic analysis........................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Title
This research report is based on the topic of “Critical analysis of capitalism and
socialism’s impact on humanity: A study on London, UK”.
Background of the study
Economy is basically large set of inter-related production and consumption activities that
assist in giving answer to the question that how scare resources of country are allocated. There
are three basic type of system such as capitalism, socialism and mixed economy. These given
forms of economy depicts about the ways that nation uses with an aim to allocate scare resources
among the citizens of country. Among these socialism and capitalism are being regarded as two
most controversial form of economy. Further, they have been the topic of debate for many
scholars (Hodgson, 2017). In this context, it has been analyzed that there are many researchers
which consider socialist economy more effective than capitalist. This is because, in socialist
economy people enjoys equality in the different factor of production. Further, in this form of
economy people have a freedom to present their views and opinions with regard to any kind of
decision taken by government of country.
On the other hand, in capitalist economy citizens will have to follow all the rules and
regulations formed by the private entities. Here, no individual can raise voice against the
decision taken by private entities. In addition to this, capitalist economy promotes competition
between people. In the present report, United Kingdom is taken into consideration. It is the
mixed economy which follows the aspects of both capitalist and socialist economy. In the
present study, assistance will be taken from different type of secondary sources like books,
journal and online article with an aim to form literature review section. In addition to this, for the
purpose to make an analysis different type of research techniques will be used. These techniques
will help in attaining the aim and objectives of study in an effectual manner. Finally, at the end
conclusion will be drawn based on conducted analysis (Healey, 2017).
1

Purpose of the study
The main purpose of this study is to get full information about the given two systems.
Further, here researcher is also interested in getting answer to the question like whether capitalist
economy is more effective then socialist or not. In order to fulfill this purpose critical analysis
will be carried out between these two economy systems.
Scope of the study
The study conducted has wider scope. This report can be used by PhD scholars who are
pursuing their study upon this topic (Ritzer and Stepnisky, 2017). Further, it has its significance
for the government of nation who wants to examine the effectiveness of both capitalist and
socialist economy.
Research aim and objective
The main aim of present study is “To critically analyze the impact of capitalist and
socialist economy on humanity: A study on London, UK”.
On the basis of above mentioned aim following objectives are formulated:
 To explore the concept of socialist and capitalist economy.
 To identify the features of socialist and capitalist economy.
 To investigate the theoretical context regarding impact of capitalist and socialist economy
on humanity.
Research question
What are the impacts of capitalist and socialist economy on humanity?
LITERATURE REVIEW
Introduction to economy
According to the view point of Levi-Faur (2017) “Economy is basically a system wherein
production, distribution and goods consumption related activities takes place”. On the other
hand, Xu (2017) depicted that economy consists of different type of activities which helps in
taking decision that how the resources of country which are scare will be distributed among
citizens of nation. As per the view point of Ringen (2017) “Economy has three basic part such as
capitalist, socialist and mixed economy”. Each nation will have to select any one of the given
system with an aim to carry out their nation work in an effective manner.
2

Concept of socialist and capitalist economy
Among three basic types of economic systems, capitalist and socialist are being regarded
as two most controversial form of system. In accordance with the given context, as per the view
point of Fuchs (2017) “Capitalist economy is the type of system in which private firms has
control over the factor of production of country”. In this type of economy, all the decision
regarding what to produce, how to produce and when to produce are being taken by the
manufacturer of product. The government of nation does not have much control over the factor
of production of nation. However, Castells (2017) has specified that there are some areas in
which government holds control under capitalist economy. These areas are military and
healthcare sectors. In these area, government control is implemented because both sector works
for the benefit of citizens of nation.
Besides this, socialist is another form of economic system. In accordance with the given
context as per the view point of Goertzel, Goertzel and Goertzel (2017) “Socialist is the form of
system in which each and every citizens of country own factor of production”. In addition to this,
in the given form of system individual receives their production share on the basis of
contribution which is being made by them. Jessop (2017) depicted that socialist economy is
based on the assumption that the people who are living in society have very cooperative nature.
Further, in this form of economic system all decision about citizens is taken by government. It is
being regarded as most effective economy because here needs and demands of each and every
individual are given equal importance. This motivates the citizens of nation with regard to give
their best services to their country. With an aim to achieve the same, citizens work hard. In
addition to this, here government of nation involves their citizens in the decision making process
about allocation of scare resources of the country. This type of effort from the side of
government exhale positive vibes among citizens of nation. It will also make them feel like they
are proud to be the part of such type of nation.
Feature of socialist and capitalistic economy
According to the view point of Levi-Faur (2017) Capitalist economy consists of three
different types of features”. The detailed explanations about them are given below: Private property: This form of economic system allows private property. Thus, varied
production means like mines, machine and factories comes under this.
3

 Profit motive: It is being regarded as main aim of this system. With an aim to attain the
same, private entities can do anything. Price mechanism: The decision about the price of specific good is taken as per the
interaction of demand and supply. For example, here manufacturer increases price of
product if it has huge demand in market. Here, while making decision about prices
producer does not think about the purchasing capacity of the citizen of nation.
Besides this, Castells (2017) has depicted different features of socialistic economy. These are
all depicted in below: Central control: It is fully planned economy wherein all the decision about country is
taken by the government of nation. Less importance to price mechanism: Here, government gives much importance to the
needs of citizens and thus it set prices for the manufactured product as per their condition.
Hence, here less importance is given to the demand and supply factor.
Theoretical context regarding impact of capitalist and socialist economy on humanity
A critical analysis is being carried out between capitalistic and socialistic economy with
an aim to examine their overall impact upon humanity. In this regard, as per the view point of
Ritzern and Stepnisky (2017) capitalist economy tend to cause negative impact upon humanity
because of its lack of compliance with the concept like equality. In this context, it has been seen
that nowadays citizens of nation are very concerned about their position in nation. Herein, they
always like to be equally treated by the government of country. But, the nation which follows
capitalist system does not follow the concept of equality. As a result of it people of nation tend to
feel highly demotivated and dissatisfied. Due to this, they do not put much effort for improving
the condition of their country. Further, they will also develop the negative views about their
country in an effectual manner. However, it has been critically evaluated by Levi-Faur (2017)
that capitalist economy promotes competition which assist in improving the citizen’s quality of
life. Competition is the need of today’s competitive environment. In this regard, it has been seen
that person who has capability to compete could survive in any kind of environment. In the
process of developing such nation among citizens capitalistic economy helps a lot. This is
because, here importance is given to those individual who work hard and prove its existence in
the highly competitive environment. Thus, it can be said that such type of economic environment
tends to develop entrepreneurial quality among citizens.
4

Besides this, Ringen (2017) depicted that capitalistic economy does not help in resolving
the problem of poverty. This is because here people have to prove their existence through their
work. It does not take any kind of action for those people who do not have money. Hence, in the
respective economy poorer will become more poor and rich people becomes more rich. This type
of situation portrays negative image about country in the eyes of their citizens.
In addition to this, according to the view point of Hodgson (2017) socialist economy
completely eliminates the concept of inequality. Thus, it gives all its citizens equal chance to
participate in the different activities in nation. Additionally, it has soft heart for the poor people
and tries to avoid this situation from the nation by giving equal access to education and
healthcare. But, it has been critically evaluated by Healey (2017) that this system is based on the
assumption that every citizen of nation are cooperative in nature and do not raise any question
against any kind of decision which is being taken by government. In reality, it is not an effective
assumption because two individual cannot be same in terms of nature. Thus, there are chances
that government will face opposition from its citizen at any point of time. In addition to this,
Fuchs (2017) stated that socialist economy will cause negative impact on those citizens who tries
to do something innovative or creative. This is because here government does not motivate its
citizens for their creativity. As a result of this their feel highly dishearten and demotivated.
As per the view point of Castells (2017) “getting an employment is being regarded as one
of the most important priority for the citizen of nation”. Herein, it is examined that
unemployment ratio is more seen in capitalistic economy. This is because, here market forces
makes the decision about number of people required to perform the specific job. However, Ritzer
and Stepnisky (2017) have evaluated that in socialistic economy government puts its all effort for
decreasing the unemployables ratio in nation. Thus, it can be said that both forms have their own
negative and positive points with regard to the impact on humanity.
RESEARCH METHODOLOGY
Research methodology consists of different techniques which assist in conducting
research upon specific topic. This is being regarded as one of the most important chapter of study
(Taylor, 2017). This is due to the fact that, it is because of this chapter only scholar can attain the
aims and objectives of its study. Further, it will also assist in resolving formulated research
question of the study.
5

Research design
It entails about the overall strategy which researcher can use with an aim to collect and
analyse data for its study. It basically gives details about the type of study being conducted by
scholar. Descriptive, diagnostic, experimental and explanatory are being regarded as four basic
type of research design. However, for the present study which is related with the topic of
analyzing the impact of socialism and capitalism economy on humanity of London, UK
diagnostic design will be used (Pangrazio, 2017). This is because, by using this method
researcher can effectively examine the selected topic under study. This leads to the solution of
research question.
Research approach
It is basically a strategy for carrying out the study upon a specific topic. It is of two types
such as inductive and deductive. When researcher is moving its study from general to specific at
that time it uses deductive approach. Similarly, when scholar moves its study from specific to
general analysis then it is called as inductive approach (Zhou, 2017). In addition to this,
inductive approach will be used when scholar have not used hypothesis in its study. In this
regard, for the current study inductive approach is applied because of absence of hypothesis.
Data collection
It is being regarded as one of the most important part of any research. This is because
with the help of this section only researcher can get answer to all the problems that are associated
with its study (Beins, 2017). In addition to this, with the help of data collection aim and
objectives of the study can be accomplished in an effectual manner. The collection techniques
are of two types such as primary and secondary. Both these methods will be used in present
study. Here, secondary data will be gathered through books, journals and online article. Primary
data will be collected through survey in which questionnaire will be used .
Sample and Sampling
Sample is the subset of whole population (Zhou, 2017). For the present study which is on
analyzing the impact of socialism and capitalism economy on humanity, 50 people from London,
UK will be selected. For the purpose to select them Random sampling method will be used
because it gives each member in society an equal chance of being selected as a sample.
6

Questionnaire for the people of London, UK
Name:
Age:
Gender:
1. How long you have been staying here?
 Less than 1 year
 1-3 year
 3-6 year
 More than 6 year
2. Among below given options, in which economy would you like to live?
 Capitalistic
 Socialistic
 None of these
3. Do you think that in capitalistic economy people are forced to follow instruction than
socialistic economy?
 Yes
 No
4. Do you think entrepreneur skills among people are better developed in capitalistic
economy than socialistic economy?
 Yes
 No
 Cannot say
5. Do you think that government should comply with the concept of equality?
 Yes
 No
6. Do you think that capitalistic economy helps in improving quality of life of an
individual?
 Yes
 No
 Cannot say
7

Thanks for your cooperation
Data analysis
It is the practice of analyzing the collected data under study (Taylor, 2017). With the help
of this section research can reach on to the conclusion for the study. In this regard, for the present
study which is on analyzing the impact of socialism and capitalism economy on humanity of
London, UK data will be analyzed by using thematic approach. In this data will be analyzed by
forming themes as per research response. Further, with an aim to present the same charts and
graphs will be prepared.
Limitation of study
Time and money are being regarded as two major limitations for the current study.
DATA ANALYSIS AND INTERPRETATION
Thematic analysis
Theme 1People have been staying here for more than 6 year
Reponses No of respondents Percentage
Less than1 year 5 10%
1-3 year 15 30%
3-6 year 10 20%
More than 6 year 20 40%
8

Interpretation: From the above analysis it has been identified that majority of people have said
that they have been living in UK for more than 6 year. This indicates that they are happy with the
economic system of country and does not have any kind of problem with regard to the same.
Theme 2 People likes to live in socialistic economy
Reponses No of respondents Percentage
Capitalistic economy 10 20%
Socialistic economy 30 60%
None of these 10 20%
9

Interpretation: In the respective theme researcher has asked direct question from respondents
about the type of economic system which they like most. In this regard, 60% of respondents said
that they like to live in socialist economy because here they have full freedom with regard to
present their views in context of any issues. Further, these people are also impressed with the
equality aspect of this system.
Theme 3People are forced to follow instruction in capitalistic economy
Reponses No of respondents Percentage
Yes 40 80%
No 10 20%
Interpretation: From the above theme it is analyzed that 80% of respondents have said “Yes”
regarding statement that people are forced to follow instruction in capitalistic economy. Here,
individual cannot interfere in the decision which is being taken by government. This type of
system demotivated people.
Theme 4 Entrepreneur skills among people are better developed in capitalistic economy
Reponses No of respondents Percentage
Yes 30 60%
No 15 30%
Cannot say 5 10%
10

Interpretation: As per above theme 60% respondents have said that entrepreneur skills among
people are better developed in capitalistic economy. They have given such response because they
believe that government of such system praise innovation. Further, it also motivate individual
with regard to present their creativity in front of other.
Theme 5 Government should comply with the concept of equality
Reponses No of respondents Percentage
Yes 40 80%
No 10 20%
Interpretation: Majority of people believe that government should follow the concept of
equality. This is because it gives them a feeling like they are being regarded as the important part
of nation.
CONCLUSION
From the above analysis, it can be concluded that both capitalistic and socialistic
economy have their own pros and cons. However, on the basis of conducted research it is
assessed that people of country find socialistic economy more effective than capitalistic. This is
because, for the people of nation things which matter them a lot are freedom of speech, equality
and government concern towards major issues of nation. Thus, it is due to the presence of given
11

aspect it is correct to said that socialistic economy tend to impose more positive impact on
humanity then capitalistic.
12

REFERENCES
Books and Journals
Beins, B.C., 2017. Research method: A tool for life. Cambridge University Press.
Castells, M., 2017. Another economy is possible: culture and economy in a time of crisis. John
Wiley & Sons.
Fuchs, C., 2017. Social media: A critical introduction. Sage.
Goertzel, B., Goertzel, T. and Goertzel, Z., 2017. The global brain and the emerging economy
of abundance: Mutualism, open collaboration, exchange networks and the automated
commons. Technological Forecasting and Social Change, 114, pp.65-73.
Healey, P., 2017. Political Economy, Diversity and Pragmatism: Critical Essays in Planning
Theory (Vol. 2). Routledge.
Hodgson, G.M., 2017. Karl Polanyi on economy and society: a critical analysis of core
concepts. Review of Social Economy, 75(1), pp.1-25.
Jessop, B., 2017. Nicos Poulantzas on political economy, political ecology, and democratic
socialism. Journal of Political Ecology, 24(1), pp.186-199.
Levi-Faur, D., 2017. Regulatory capitalism. Regulatory Theory, p.289.
Levi-Faur, D., 2017. Regulatory capitalism. Regulatory Theory, p.289.
Pangrazio, L., 2017. Exploring provocation as a research method in the social
sciences. International Journal of Social Research Methodology, 20(2), pp.225-236.
Ringen, S., 2017. The possibility of politics: a study in the political economy of the welfare
state. Routledge.
Ritzer, G. and Stepnisky, J., 2017. Modern sociological theory. SAGE Publications.
Taylor, R.R., 2017. Kielhofner's Research in Occupational Therapy: Methods of Inquiry for
Enhancing Practice. FA Davis.
Xu, C., 2017. Capitalism and Socialism: A Review of Kornai's Dynamism, Rivalry, and the
Surplus Economy. Journal of Economic Literature, 55(1), pp.191-208.
Zhou, H., 2017. Research Method. In Combustible Solid Waste Thermochemical
Conversion (pp. 33-62). Springer, Singapore.
13

14