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U S And China's Capitalism And Socialism Essay

The Role of Capitalism and Socialism in the US and China

Capitalism and socialism are political and economic systems used by nations across the globe to promote their interests. The United States and China are examples of two countries that use capitalism and socialism in the global arena. In the US, capitalism is an economic system that is centered on economic freedom and consumer choice while socialism is governmental control over natural resources and means of production. An example of capitalism in the US is the deregulation of the financial sector to promote economic freedom (Whitley, 2009). However, the weakening of US financial markets contributed to efforts to reregulate them, which is a reflection of socialism. On the contrary, Chinese financial markets have largely been based on socialism since the government controls the economy and serves as a central planning authority that offers greater social welfare while decreasing financial instability. China utilizes a nation-centric state power economic model that has generated tensions in the transnational world system (Harris, 2018).

US capitalism is similar to Chinas socialism in terms of regulation of markets and government-led economic growth/development efforts. However, Chinas socialism has recently focused on the establishment of a multi-polar trading regime as it embraces global capitalism. In terms of capitalism, China differs from the US as its capitalism class is a combination of state and private parties with statist components in leadership. However, they are similar in terms of the focus on promoting economic growth. Capitalism has numerous advantages for both the US and China including a wide range of consumer products/services, better market efficiencies, and greater incentives for businesses. However, its disadvantages are class distinction, the creation of monopolies, and inequality in social division. The advantages of socialism for both China and the US include promoting economic equality, reduction of class distinctions, and equality in resource production and distribution. However, its disadvantages are state ownership of resources, slow economic growth, and lack of innovation and competition.

References

Harris, J. (2018). Chinas road from socialism to global capitalism. Third World Quarterly, 39(9), 1711-1726.

Whitley, R. (2009). U.S. capitalism: A tarnished model? Academy of Management Perspectives, 23(2), 11-22.

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