But different from laissez-faire, government regulation is often found in economic activities in order to product consumers, workers, and company's investors etc.
Monopoly in Capitalism
Today,different from the area of laissez-faire, a monopoly also exists.
Monopoly is a practice where a single business firm controls a certain market from pricing, quality, to availability.
In many industries, a few companies dominate the field and keep new enterprises from entering the market place.
(e.g.Microsoft Corp monopoly of computer business)
Figure 1 and 2: Monopoly by Microsoft Corp.
Under the area of globalization today, multinational corporations have spread the capitalistic pursuit of profits around the word.
Developing countries are ofter not ready for sudden inflow of foreign capital,and it can get damage.
Socialism
Socialist theory was refined by Karl Marx and Friedrich Engels.
A socialist economic system attempts to eliminate economic exploitation of the working class that emerged through the industrial revolution.
Thus, under socialism, means of production and distribution are owned collectively rather than privately.
Its basic objective is to meet people's needs rather than to maximize profits.
Socialists disagrees laissez-faire philosophy.
Instead, they think that the central government should make basic economic decision as a representative of the people.
Therefore, government owns all major industries.
For the social service program, socialist countries offer government-financed medical care to all citizens.
In theory, the profit from collectivity is used for health care, housing, education, etc.
But different from laissez-faire, government regulation is often found in economic activities in order to product consumers, workers, and company's investors etc.Monopoly in CapitalismToday,different from the area of laissez-faire, a monopoly also exists.Monopoly is a practice where a single business firm controls a certain market from pricing, quality, to availability.In many industries, a few companies dominate the field and keep new enterprises from entering the market place.(e.g.Microsoft Corp monopoly of computer business)Figure 1 and 2: Monopoly by Microsoft Corp.Under the area of globalization today, multinational corporations have spread the capitalistic pursuit of profits around the word.Developing countries are ofter not ready for sudden inflow of foreign capital,and it can get damage.SocialismSocialist theory was refined by Karl Marx and Friedrich Engels.A socialist economic system attempts to eliminate economic exploitation of the working class that emerged through the industrial revolution.Thus, under socialism, means of production and distribution are owned collectively rather than privately.Its basic objective is to meet people's needs rather than to maximize profits.Socialists disagrees laissez-faire philosophy.Instead, they think that the central government should make basic economic decision as a representative of the people.Therefore, government owns all major industries.For the social service program, socialist countries offer government-financed medical care to all citizens.In theory, the profit from collectivity is used for health care, housing, education, etc.
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