Posted by: A. C. Cockerill | March 10, 2014

Question of the Week #11 – 2014

Question of the Week #11 – 2014

How are capitalism, socialism, and monopoly defined?

My two cents (but please share yours):

Capitalism means that individual citizens or organizations own property. They have the control over their food, water, shelter, clothing, and stuff. Therefore, they control their lives. The individual citizens or organizations have freedom.

Under socialism, the government owns all of the property and controls the food, water, shelter, clothing, and stuff.

A monopoly occurs when one person, organization, or government owns all of the stuff in a particular area or market. Monopolies can occur in either the public or private sector.

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Responses

  1. Your definitions are basically correct, but I would add that monopolies in the private sector are unstable and will always be destroyed by competition if free enterprise is unrestrained. Only the government can sustain monopolies indefinitely, through the force of law backed by guns.

    • You’re so right about the need for competition in the private sector, David. Cheers, Ashley

      • My real point, Ashley, is that competition arises NATURALLY in the private sector if the government just leaves business alone. No ne needs to do anything to force it.

      • Good point, David. Cheers, Ashley


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