In the Capitalist economic system which is alternatively called the market economy, the forces of demand and supply are allowed to operate. The prices and quantities to be sold are determined in the free market and there is no restriction put by the government on the determination of the prices that are sold in the market. Thus the profit or surplus that is earned by the owners of the means of production remains on their hands and the employees or the workers are eligible for salaries or wages (Gardner 27). The economic structure of the United States is of the capitalist type because this ideology has been applied in the economic system of the United States.
In an alternative system that is the Socialist structure of the economy, the entire ownership of the means of the production lies with the government of the country. In this kind of a socialist system the surplus that is derived out of the production of goods and services after the payment of the wages are equitably distributed among the people that constitute the residents of the entire nation.
Even the disabled people who directly cannot contribute to the production get an equal share of the surplus as the wage earners are entitled to. The main proponents of the theory of socialism were Karl Marx and Friedrich Engels. They believed in the theory of class struggle and the theory of surplus value. A third kind of economic system that has the quality of both the capitalist structure and the socialist structure is the mixed economy. In this kind of an economic structure, the public and the private sector institutions coexist (Conklin 37).
The government of such mixed economies does not interfere into the activities of the private sector directly but they do have certain restrictions imposed on them in the form of legal and constitutional regulations. The economy of India is an example of mixed economy where there is the coexistence of the private and the government players in the markets. The implementation of various policies that the socialist government of China had adopted led to the success of the country under various situations.
China had a very high growth rate of population. The guiding principle of the socialist government of the country which includes the one–child family policy has helped to curb this growth rate (Naughton 168). All the couples of the country were restricted to having only one child and almost 36% of the population of China came under
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