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Socialism is about placing the ownership and control of the means of production to the community as a whole. This means that in a socialist run economy, land, infrastructure, and raw materials are all owned by the state’s citizens as a collective whole. This can be achieved either by the use of popular collectives such as labor councils, or by designating the state government as the representative of the people to make decisions on behalf of the people. In a socialist economy, private citizens have limited options when starting a business. This is in contrast with American free enterprise wherein a citizen can start any business so long as the inner workings of that business do not violate the laws of the state (Newman, 2005).Socialists claim several advantages of socialism against free enterprise. Firstly, they say that socialism helps in the even distribution of a country’s wealth. This means that a socialist run economy would see less of both very poor and very rich people. Secondly, since a socialist run economy has strict control over means of production, inflation rates are minimized and prices of goods are kept low. Socialism claims to prevent the abuses of manufacturers on consumers that are created by advertising hype, overpricing, and misleading product descriptions (Makoto, 1995).Despite all the supposed advantages of socialism, this paper still stands firm to the statement that the United State’s free enterprise economy is better than any socialist run economy. Firstly, free enterprise gives people greater incentive to work harder and to build businesses because of the flexibility that it offers. Since in a socialist economy the controlling body has influence over the entire state, this monopoly prevents the controlling body from seeking more progress and upgrading their resources. On the other hand, a free enterprise has several large companies competing for market shares which mean that all of them will be constantly trying to outdo each other rather in terms of prices of goods as well as product advancement.Secondly, while socialism claims to evenly distribute state wealth, this clearly has not been seen in any of the existing socialist states or in any of the ones that previously existed. For example, Hugo Chavez’ socialist Venezuela obviously puts greater premium on military personnel. President Chavez’ armed groups are the ones that feed off the fat of the land while the president takes over any business that seems to be doing well. This has led several entrepreneurs from Venezuela to leave the country and seek for less hostile environments in the U.S (Geiger, 2006).In conclusion, free enterprise presents better opportunities to the people and gives due incentives and security to those who are willing to work hard and persevere. A country that upholds free enterprise stands to progress at a faster rate than a country that uses a socialist based economy. References:Makoto, I. (1995). Political Economy of Socialism. Macmillan: London.Newman, M. (2005). Socialism: A Very Short Introduction. Oxford University Press.Geiger, H. (2006). Entrepreneurial Venezuelan Fear Chavez Rule. Retrieved : July 2, 2007 from : 

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