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How can socialist economics play a major role in the economy than captalist economics?
Wiki User
∙ 14y ago
A true capitalist economy is one in which the government takes no part in the creation and exchange of goods and services. In a true capitalist economy, there are no taxes, no public goods, no regulations on monopolies or quality of a product, no product is illegal to purchase or sell, there are no price limits. The government serves only politically to pass and enforce laws.
A socialist economy is one in which the government uses a large progressive tax to provide all the goods and services the society needs. The government controls the economy.
In the United States, we have what is known as a mixed economy. We are socialist in that we have a tax system that allows the government to supply public goods and services, such as education, health care, public transportation, national defense. We have regulations on medicine and food, also on monopolies. We outlaw the sale of illegal drugs and harmful substances. We are capitalist in that the government does not provide all of the goods necessary. Unlike in a socialist economy, we let prices be set by sellers based on demand. We also let producers produce as much as they want of anything the is legal. Another thing, we don't ration, or say what a person can or cannot buy.
I hope that answers your question.
Wiki User
∙ 14y ago
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