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Essay topic: The recent financial crisis highlights the perils of Capitalism The inherent vice of capitalism is the unequal sharing of riches; the inherent virtue of socialism is the equal sharing of miseries. ‘ This quote by Winston Churchill, prime minister of the United Kingdom during the Second World War, encapsulates the Idea of distribution of wealth between developed and developing nations. While developed nations work on the social theory of capitalism, developing nations follow socialism. Capitalist economies Like

USA, Canada, Japan, and Germany are run by private enterprise. From transport to communication to industries, all sectors are In the hands of the private players who ruthlessly exploit resources. But capitalism seems to have worked for these economies with most of them becoming superpowers. On the other hand, In countries Like India, Cuba, and Sweden which began with socialism, most of the sectors are run by the central government. Progress Is relatively slow: even after 60 years of independence, India is still considered a developing nation.

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Though fatalism offers the greatest potential for misuse of power, it still benefits the economy. The standard of living among the poorest in developed nations is comparatively better than that of the middle class of developed nations. If we compare these nations on parameters like food (malnutrition being the biggest problem in India and other African countries), or infrastructure, we lag many years behind these countries. It took us 20 years to construct a sea link, a project which routinely takes a few months in the US.

In terms of inventions and breakthroughs or or that matter even basic necessity, capitalism has provided better opportunities than has socialism. However the Sub Prime crisis in the US led to a global recession. This, followed by the European financial crisis which has left most of the European economies bankrupt, has made us look into the possible perils of capitalism. On the other hand India adopted the Anabolism model in an attempt to boost the manufacturing sector. However, thanks to government interference, this sector never took off, leaving the problem as it was.

In fact, the problem of unemployment has escalated to such high levels that even China scores over India in this respect. To boost the sagging economy, the government has opened to private Investment areas once considered a government domain – telecommunication, oil and natural gas, aviation, etc thus taking a step towards capitalism. This could very well be the beginning of capitalism in India. So, Is socialism better than capitalism? Are economic Ideologies the only reason why economies fall? Or what matters Is the way these economies are run by the people responsible for It.

It would be Incorrect to blame any of the economic Ideologies without analyzing the root cause of the problem. Recent Financial Crisis By separating ‘The inherent vice of capitalism is the unequal sharing of riches; the inherent virtue Second World War, encapsulates the idea of distribution of wealth between theory of capitalism, developing nations follow socialism. Capitalist economies like communication to industries, all sectors are in the hands of the private players who economies with most of them becoming superpowers.

On the other hand, in entries like India, Cuba, and Sweden which began with socialism, most of the sectors are run by the central government. Progress is relatively slow: even after 60 boost the sagging economy, the government has opened to private investment areas beginning of capitalism in India. So, is socialism better than capitalism? Are economic ideologies the only reason why economies fail? Or what matters is the way these economies are run by the people responsible for it. It would be incorrect to blame any of the economic ideologies without analyzing the root cause of the

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