Socialism vs Capitalism

Although Capitalism has a different meaning in various groups, the term is commonly acknowledged as “the private ownership of the means of production, and the coordination of the economy by the market” (Bresser-Pereira, 2012, p. 22). On the surface, the meaning of capitalism seems straightforward; referring to an economic system in which private individuals, rather than governments, own property and businesses. But beneath the surface, strong currents of opinion and theory swirl about the term. Yet in contrast, Socialism is more collective, it allows for everyone to benefit from the economy, instead of only the rich. According to Radice (2010), “Socialism is nothing more than a planned state-capitalism with grab-motive left intact” (p.1), but truthfully Socialism is defined as the idea of equality; and classless society where there are no private sectors of ownership. I deem Socialism as the best support to leadership and group dynamics, because of the decision making process, interdependence, and group member commitment.

Many observe that the large societal problems need solutions from governmental action, rather than private enterprise. Socialism deals with the society as a whole, there are no classes; everyone is involved in the decision making method by a consensus, which allows for everyone to influence the decision (Johnson & Johnson, 2013). I believe that Capitalism has been viciously attacked and ineptly defended. But, even in the nature of the term, it is still considered designed for one designated group, which is the private sector. The government does not have the bias of gaining profits, and the government encompasses elected officials to represent groups with a common purpose.

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In allowing elected officials to represent the least among us, ensures that certain groups’ will have a voice. According to Coates (2013), the need is growing for interdependency among governments, business, and non-profits in developing group dynamics. In order for Socialism to be successful, leaders
will need to employ influence that will reach groups who will exert a restraining influence. The group of Stakeholders or Wall Street want to keep Capitalism alive, because as it allows them to remain profitable. In a socialist economy they would not be able to use the decision method they are most noted for using, which is the “majority rules.”They would be required to be effective leaders. Make sound decisions and actually care about the benefit of everyone.

Socialism allows for equal rights, and for any leader to be successful there has to be a group with his same vision. Member commitment is the key to positive behavior and attitude. When members of a group are included and treated equal, they are more apt to remain loyal to their leader and committed to the group’s goals. With Capitalism, there is always one goal and that is profits. Private businesses that continue to allow abuse of labor laws and wage contradiction will always favor Capitalism, because it will always generate profits and they do not care about what the “rest of the group thinks”.

It is my strong belief that Socialism supports leadership and group dynamics, because of the nature of the term. Everyone is included as well as their input. When I vote for an elected official, I want them to have everyone’s best interest. Using a consensus system that allows anyone qualified to run for office regardless of their social status, and everyone a right to express their interdependence by voting, as well as remain committed to the group. The way the private sector treats its employees should be proof enough that Socialism should exist.

Bresser-Pereira, L. (2012). Five models of capitalism. Brazilian Journal Of Political Economy / Revista De Economia Política, 32(1), 21-32.
Coates, B. E. (2013). Embedding Leadership driven Conscious Capitalism into Corporate DNA. Advances In Management, 6(4), 14-24.
Johnson, D.W., & Johnson, F.P. (2013). Joining Together Group Theory and Group Skills (11th ed.). Upper Saddle River, NJ: Pearson Radice, H. (2010). The Idea of Socialism: From 1968 to the Present-day Crisis.
Antipode, 4127-49. doi:10.1111/j.1467-8330.2009.00715.x Schumpeter, J. A. (1950). THE MARCH INTO SOCIALISM. American Economic Review, 40(2), 446.

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Socialism vs Capitalism. (2016, Nov 09). Retrieved from