Societal

SOC201- Introduction to Sociology

Social Institutions

For this assignment, I will discuss the key tenets of Capitalism and Socialism and consider two different economic philosophies, which of the two I think are more viable in the age of technology and why. And I will consider ways that at least two important sociological institutions help to make the economic system successful.

Key Tenets of Capitalism

When reviewing the tasks for this module, I have comprised seven key tenets for capitalism and they are Private Property, Self Interest, Competition, Market-Based, Economic Freedom, Consumer Sovereignty and Laissez Faire.

Private Property is categorized into two different types of property between land and all other forms of property which are distinguished between two tangible and intangible properties. Property is then divided into two segments called real property/ immovable property meaning land interest and improvement and personal property that is interest in anything other than real property. Personal property is split into tangible property such as cars, clothing and other materialistic items. And then there is intangible or abstract property meaning financial instruments as stocks and bonds that include intellectual property otherwise known as patents, copyrights and trademarks.

Self Interest has also been called egoism. Psychologists have stated that individuals are motivated by self-interest. Ethical egoism states that people should do what is in their self-interest. And rational egoism says that it is rational to act in one’s self-interest.

Competition is often seen as the most important part of Capitalism. It stimulates innovation and encourages efficiency. Competition is touted as the foundation in which Capitalism is built. It causes commercial firms to develop new product, services, and technologies. Competition gives the consumers larger selections and better products. Greater...