Sociology

Capitalism is an economic system where the factors of production are owned and controlled by a central government (Schumpeter, 1992). Socialism is a system where the community collectively owns and controls the factors of production and their distribution. In a socialistic economy, the government controls the production and distribution of products. The private enterprises have no control over production (Targ,  Polychroniou, 1996).

Socialism ensures equal distribution of resources in the country compared to capitalism which concentrates wealth to a few individuals. Capitalism increases the efficiency in production since resources are easily managed than in a socialistic economy (Targ,  Polychroniou, 1996).

The United States will lose by reduction in the efficiency of production. This will reduce the quality and quantity of products produced by the economy. The gains from a socialist economy are that there will be equality in distribution of resources and the gap between the rich and the poor will be reduced (Targ,  Polychroniou, 1996).

The greatest advantage of the socialist economy is the elimination of social classes which are created by the big gaps between the rich and the poor. The greatest disadvantage is that a socialism economy does not produce goods effectively. The private sector is more effective than the government. The control of the economic activities by the government has many loopholes which reduce the efficiency in production (Targ,  Polychroniou, 1996).

Conclusion
The United States should evaluate its decision to move to a socialists economy. Socialisms is a better strategy when the country has adequate resources to support the citizens and has good mechanisms of controlling all the factors of production. A capitalism system is suitable in an economy with inadequate mechanisms to control the operations of the private sector.