Socialism is better than capitalism

Capitalism Does WorkI would like to start this debate by pointing out that capitalism does work. It works in increasing economic growth and average income. It also works in increasing things like life expectancy, political freedom, and education. In a study titled "Two Cheers for Capitalism? ", Peter Leeson notes that countries that have become more capitalistic over recent decades have seen more income growth, higher life expectancy, more education, and more political freedom. Meanwhile, countries that have become significantly less capitalist, have seen stagnant income growth, less life expectancy, less education, and more oppressive political regimes [1]. Why Capitalism Works Better than SocialismAt the core of capitalism is voluntary exchange, competition, decentralized control, and incentives. Basically, the idea is that the government provide a currency, a few basic "non excludables" (military, police, basic safety net, etc. ), and set some basic rules (contract enforcement, copyright, property protection, etc. ) but then allow individuals to do the rest through individual exchange. Now, critics often charge that capitalism is based on "greed". They are wrong. Capitalism is based on voluntary exchange. Individuals and groups exchanging goods and services without state coercion. Often times, it is true that the exchange of goods and services is in the self interest of both parties involved. This is known as mutually beneficial trade. However, in this context, self interest is a good thing. Imagine one person has two televisions and the other person has two computers. If both of these individuals agree to trade one television for one computer, then it would be in the self interest of both of these two to do it. And, it would make both involved better off. That is the key to voluntary exchange. Now, a socialist could argue that both of these individuals are being greedy, but that does not change the fact that all parties are better off. Capitalism is basically voluntary exchange on a large scale. Corporations that exist independant of government only got their through selling their goods and services on a free exchange. And, if people like what they sell, they can grow into a large corporation. So long as they don't get ties with the state, this is good for society. In a word, capitalism is the free, voluntary exchange of goods and services in a society. It works because every exchange is good for all parties involved. In contrast stands socialism. Socialism is basically a state run economy. The state uses coercion to forcefully take income from some to give to others. It runs industries not by free exchange and competition but central planning and force. This means that industry in socialism is not based on consumer demand but what bureacrats think is right for society. Perhaps more importantly, socialism does not allow industry to fail. This is protectionism at its worst. It props up the old industry with precious resources. This keeps resources from being moved to new, more efficient and productive enterprises. It keeps entrepeuners from having the ability or drive to start new businesses or ideas. In the end, socialism does not work in practice or in theory. Sources:[1] . http://www.peterleeson.com...