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Skylet Yu

English 1123

April 2, 2021

Is Socialism or Capitalism Moral?

The basis of my research essay comes from Patric Kerouac's article, “Socialism vs Capitalism:

Which is the moral system?” Throughout this article, Patric Kerouac talks about the pros and cons of

these structures, he later concludes by saying that both systems are moral. These are two opposing

political and economic systems that are used by almost all countries around the world. As I further my

research, it is important to understand the difference between these two; capitalism has private ownership

while socialism has public ownership. Throughout this paper, I will point out the similarities and

differences between the systems by incorporating my research. My work will mostly contain the

important aspects that both these systems possess and how the people within these systems perceive

them. These systems regulate businesses on a global scale but change has increasingly been called for

because of the morality aspect. This research is important because of the focus and importance it has in

the daily lives of people around the world. Major change happens on a daily basis and these structures

have been implemented centuries ago but the morality and efficiency of these systems have not changed.

As I compare and contrast capitalism and socialism, you learn that only capitalism is moral.

In Patric Kerouac’s article, he speaks of two political and economic systems which are polar

opposites, capitalism and socialism. In America, there have been notions that America’s economic system

has been failing, but Kerouac is proving otherwise in this article. The failure is being blamed on

capitalism by Bernie Sanders, hoping for a social democracy. He stated that throughout history, there

have only been two basic forms of social organization: collectivism and individualism. Collectivism has

many forms, such as nazism and communism while individualism’s only close correlation would be

laissez-faire capitalism. The writer’s focus in this article is the purpose of capitalism and how important it

is to society.
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There are winners and losers in this system but it is said that it is the only just system that is able to

reward hard-workers. Sadly, he finds that capitalism no longer exists fully in America and only lives in

chunks as there is a mix of both socialism and capitalism in the system of the United States. He believes

that capitalism will not return until there is a revolution and until then there will not be social justice.

In this article, his views on capitalism are accurate. He provides facts that enhance his main focus

of the article but fails to provide more statistics and facts about socialism. Throughout this article he was

able to source and quote from C. Bradley Thompson, another individual that has the same opinions as

him. There could have been more detail in the thought process as to why Bernie Sanders believes

socialism is the proper system. Detail from both sides allows the reader to gauge a more thoughtful

opinion as to why there is conflict between the two systems. For readers to understand why capitalism is

greater, he would need to provide more statistics and background information for people to compare it

themselves. Kerouac was able to perfectly describe and educate the readers on what capitalism is and

how it can improve society but does not do so for the opposing side. He oversimplifies on the opposing

side which could be a factor of bias. Larger issues and concepts that he failed to speak of are the opinions

of the people living in these countries. The thoughts of the people have a great impact in changing the

productivity for a country. For example, in Sweden, there has been increased frustration with the socialist

system because of the lack of incentive and choice the people have. Meanwhile, in America there has

been an increase of frustration for the poor and inequality of wealth in the country. The general reader of

this article would not understand the significance of this issue. They are not given enough background on

socialism and have not been given a reason to relate to it. The strategy that is mostly used is logos, he

mostly used facts to support his main argument. Unfortunately, he was unable to use logos on both sides

of the argument and was unable to strengthen his argument by using more pathos and ethos to make the

audience relate to an international problem.

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I agree with Patric’s main argument, on how capitalism is a better system than socialism, but he

was unable to focus on both sides of the argument while maintaining his position of the argument. I am

now going to argue that capitalism is a better and moral system. Daren Bakst has described capitalism as

a social system rather than an economic system. To begin, capitalism has more advantages for the

well-being of an individual and the community. Each person has the right of choice which is important

because of the benefits it would create for the community. These benefits would include a network of

trade and financial incentives. Capitalism has led to a decrease in the prices of many products and has

also created the strong and international trade connections the world has today as it created many business

opportunities. In a country with a foundation based on a free market, the efficiency of the market would

increase further than it would in a different economic system like socialism. On the opposing spectrum,

socialism also has many benefits but it is limited. A benefit would be an equal society in terms of wealth.

Although, there are many conflicting perspectives that can change one’s opinion about an equal society.

Another benefit would be the greatly reduced poverty in comparison to other first world countries.

Poverty has been an international issue, socialist countries would have the smallest percentage of people

in poverty but the approach towards it has created more cons. These cons such as slow economic growth

and lack of opportunity have been steadily growing in frustration by the people within these countries.

There are multiple disadvantages that are correlated with socialism which are mostly disincentives

created by the high taxes.

The morality between both of these systems have been constantly disputed but capitalism is the

only moral system. The morality between these benefits are clearly outlined within the foundation

between these two systems. The foundation of capitalism is private ownership whereas socialism is

public ownership. Private ownership has freedom and the public does not. In simple terms, morality is

found in choice as it creates personal benefit which is found in capitalism. It generates an infinite amount

of outcomes that is controlled solely by the individual. Freedom equates to morality. The basis of

socialism already creates boundaries for the amount of success and freedom an individual has. As

described by
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Bradley C. Thompson, socialism requires envy and self-sacrifice. For example, in socialist countries they

are not given the option to run their own businesses because the system encourages you to work more to

get more rewards. There are no personal financial incentives created by this. Hard-work has more benefits

in capitalism as there are no limitations to how much they can make. Since the beginning of capitalism in

Britain, it has encouraged more international trade. Again, it encourages incentive between people living

around the world and has been described as a way to “take down the barriers” that were originally created

by differences such as culture and language.

A study conducted by Pew Research Center found that 55% of Americans had a negative

impression of socialism while 42% had a positive view. For capitalism, they found that around two-thirds

said that they have a positive view of capitalism and the other third had a negative impact. Through this

study, we learn that capitalism has a more positive connotation and has a bigger impact in America. In

countless studies discussing socialism’s pros and cons, almost all of them discussed that the biggest

problem was the disincentive created by the lack of freedom and choice that the people have. People have

relocated to places where taxes do not take control of almost all of their profit. Socialism allows for

balance but they are not given the option to do better at their own expense without the government pulling

them down.

Patric Kerouac’s article was able to educate the audience of the benefits that are created from

capitalism. I touched on the pros and cons of both capitalism and socialism and how capitalism benefits

the society more. It is important to look at the views of the people, the benefits and morality aspect of

each system to understand that capitalism easily creates a better environment. The research conducted

allows people to understand the perspectives of others and the main difference between both structures.
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Works Cited:

Bakst, Daren. “Capitalism and Morality.” John Locke Foundation, John Locke Foundation, 20 Oct.

2011, www.johnlocke.org/update/capitalism-and-morality/.

Pettinger, Tejvan, et al. “Pros and Cons of Socialism.” Economics Help, 16 Nov.

2020, www.economicshelp.org/blog/147271/economics/pros-and-cons-of-socialism/.

Thomspon, Bradley C. “Socialism vs. Capitalism: Which Is the Moral System.” Ashbrook, 20 Feb.

2021, ashbrook.org/viewpoint/onprin-v1n3-thompson/.

Linda Williams, Lumen Learning. “International Business.” Lumen,

courses.lumenlearning.com/internationalbusiness/chapter/reading-the-benefits-of-socialism/.

Hayes, Adam. “What Are the Most Important Aspects of a Capitalist System?” Investopedia,

Investopedia, 4 Feb. 2021,

www.investopedia.com/ask/answers/040715/what-are-most-important-aspects-capitalist-system.asp.

Flynn, Matthew B. ``Global capitalism as a societal determinant of health: A conceptual framework.”

Netherlands : Elsevier Science, Social Science & Medicine, Vol 268, Jan, 2021,

https://www-sciencedirect-com.ezproxy.langara.ca/science/article/pii/S0277953620307498?via%3Dihub

“Americans' Views of 'Socialism' and 'Capitalism' In Their Own Words.” Pew Research Center - U.S.

Politics & Policy, Pew Research Center, 25 Aug. 2020,

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www.pewresearch.org/politics/2019/10/07/in-their-own-words-behind-americans-views-of-socialism-and-

capitalism/.