Free Market Capitalization and Socialism: A Literature Review

This literature review explores the relationship between free market capitalization and socialism, discussing their pros and cons, and their impact on wealth distribution and power. The review analyzes various perspectives on the two economic systems, including their historical roots, their impact on social justice, and their role in shaping the global economy. The review also examines the relationship between free market capitalism and state capitalism, and the ways in which governments can regulate the market to ensure fair play. The review concludes by highlighting the need for a nuanced understanding of the complex relationship between free market capitalism and socialism, and the importance of finding a balance between the two systems.

Free market capitalization
and socialism

LITERATURE REVIEW
As per the view of Sperber, (2019) free market capitalization method through which the
market cap of underlying index is determined through multiplying the price with numeric and
outstanding shares. Free market is considered to be something that no one wants. This is due to
some benefits that the market gets from the restrictions made by the government. Free market
gives opportunities to different entities to prosper however, it can result in loss of actualization
and increase risk of monopoly. Certain restriction which the government imply over the market
is considered to be very effective for the perpetuate that is essential for the passing laws which
can control the market situation. Kolodko, (2018) evaluated that the capitalism is dominating in
most part of the world and certain countries are adopted for the so called efficiency and with the
maximum amount of wealth maximization. The fact which the capitalism is founded on the free
market economy and non-governance intervention it is going to be very effective for the profit
maximization. This has been able to generate the inequalities and social segmentation that help
in concertation of the wealth in few hands. There are certain anomalies that have system
unattraction toward some extent and some of these economists have expressed pessimistic view
that is present towards the validity of the future.
Munger and Villarreal-Diaz, (2019) analysed that the socialist systems is in the regimes
based upon the social and economic and political theory of the socialism and it is avocation of
the public ownership and cooperative management and its mean of production. In comparison to
that socialization the capitalisation which is associated with the economic system that is the key
factor for the inequality and unfair circulation of the wealth and power. Such a propensity is
going to lead towards the monopoly or oligopoly behaviour that brings imperialism and counter
revolutionary wars. However, as per the history the capitalism has been seen as the practice of
slavery which is considered to be a notable critics of capitalism. In some labour historians and
scholars which have debated that the unfree labour is the one that is indentured by servants,
prisoners. O’Neill, (2020) elaborated that many facets of the capitalism have come under attack
since the anti-globalization movement. The state capitalism consisted of the ownership which
was meant for the production that stated that the organization is going to help commercialism the
business. China and Russia both are pushing state capitalism jointly. This is said to be the
emergence of the economies possess the latest business weapons. These countries are considered

to be the one that have been able to influence the free market that is going to possess the
operations that are going to be very effective for gaining the success that is required.
Haynes, (2019) explained that the free market is economy that is considered to be driven by
the supply and demand. It was considered to be very effective for being able to supply the
demand and social believes which bring the legal production besides distribution decisions which
is made by government. The state of the food and employment is also influenced by the free
market in the capitalism. The government rather than the free market is able to determine the
quantity of supply and pricing levels of the goods and services produced. Communist countries
such as the China, North Korea and Cuba test towards the socialism though the western
European countries favour capitalist economies and attempt to diagram a central sequence. This
is the extremes that both the systems have related to the pros and cons. Fraser, (2020) added that
also a share of the capitalism is the free process of the capital market which helps the demand to
determine the fair prices for the stock, bonds derivatives, currencies and commodities. This is
due to the market distribution the features of the production in accordance to the total supply and
demand that can be limited by the government for better enacting and enforcing the rules of the
fair play. However, it has been found that the authorization in the capitalism is considered to be
very essential aspect of the wealthy and powerful state. This is how it explains that the
experimental government with the free market is also purposed as the flourishing economy for
leveraging the citizenry of their respective states. In certain parts of the world government owns
the agricultural land for holding a majority of the stakes in the railroads.

REFERENCES
Books and Journals
Fraser, N., 2020. What should socialism mean in the twenty-first century?. Socialist Register. 56.
Haynes, M., 2019. Nikolai Bukharin and the transition from capitalism to socialism. Routledge.
Kolodko, G. W., 2018. Socialism, capitalism, or Chinism?. Communist and Post-Communist
Studies. 51(4). pp.285-298.
Munger, M. C. and Villarreal-Diaz, M., 2019. The road to crony capitalism. The Independent
Review. 23(3). pp.331-344.
O’Neill, M., 2020. Social justice and economic systems: On Rawls, democratic socialism, and
alternatives to capitalism. philosophical topics. 48(2). pp.159-201.
Sperber, N., 2019. The many lives of state capitalism: From classical Marxism to free-market
advocacy. History of the Human Sciences. 32(3). pp.100-124.
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