Question

For the past 200 plus years, the USA economy has practiced the economic theory of “capitalism”. Do you think our government should pass laws to change it to “socialism”? Cite 3 reasons why we should or shouldn’t change it.

Answer 1

In my opinion there shouldn't be any change to socialism because of the following reasons

1) There will be lot of price controls in the market as government will try to control each and everything which will lead to failure of market.

2) There will be decline in the growth in the Economy as the government spending will decrease due to control of government on industries and they impose restrictions.

3) Government will complicate the decision making process and will not take advantage of changes in the technology and other advancements.

4) People will not have the motivation to work harder as there will be no incentive in work as everyone are equal.

5) Tax rate will go up as the government have only source of income which is tax revenue .