Capitalism and socialism

Most people may consider both the U.S. and Denmark to be capitalistic
countries. While this is true for the U.S., Denmark has a socialist economy. Both have
virtually the same indicators such as GDP per capita, inflation rate, living standards
and a market-based economy. Thus, the majority thinks that these countries have the
same economic systems, namely, capitalism. Although the U.S. and Denmark are
both developed countries, and operate based on the market, their economic policies
differ in some perspectives.
One major difference is the role of government. The U.S. government has
minimum intervention to the economy. This can be seen in the fact that most
production means are owned by individual since, according to the advocates of
capitalism, people work at their full potential only if they are self-employed. Another
fact about the role of government in the U.S. is the degree of freedom entrepreneurs
are entitled to decide what and how much to produce. In other words, the price and
amount of the product is settled according to the law of demand and supply. In
contrast, major economic decisions are made by the Danish government. Unlike in
the U.S., main production factories are regulated by the government on the ground
that socialists believe the economy will eventually come to a collapse without the
government intervention Also, most universities and schools are publicly owned to
guarantee that people receive proper education. In addition, the prices of main basic
products such as bread are controlled by the government.
Another difference is economic inequality. The U.S. accounts for one of the
highest wealth gap in the world. For example, in the U.S. the Gini coefficient, which
measures the difference between the richest and poorest, is among the highest.

While the world average of the Gini coefficient is around 0,33, in the U.S. it makes up
0.41. Furthermore, generating 80 percent of the national income, the richest 20
percent of the population receive most of it. However, Denmark is one of the
countries which have the lowest wealth gap. To illustrate, the Gini coefficient in
Denmark constitutes merely 0.29, which is relatively low. This can also be proven by
the fact that middle income households own a considerable part of the national
income.
Finally, the last difference can be seen in the social welfare system. Since
social welfare and capitalism has an inverse relationship, The U.S. provides weaker
welfare system. The U.S. does not have paid-leave vacation. If you have a newlyborn child, or your spouse is sick, you can take only a 3 day vacation.

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importantly, Labor unions in the U.S. are not as much powerful as the ones in
Denmark. In marked contrast, Denmark has a solid welfare system. For instance,
paid-leave is allowed in Denmark. Parents can take up to 52 week parental leave and
receive subsistence allowance. Furthermore, Denmark has a low unemployment rate
since labor unions have significant authority and provide high-quality service.
In brief, as previously noted, there is a significant difference between the
economic systems of the U.S. and Denmark in terms of the role of government,
economic inequality and social welfare system. Nevertheless, despite the differences,
both countries have solid economies and have proved to be capable of providing
proper life standards. Whilst there is not any proper indicator to determine one over
the other, I personally prefer a socialist economy where economic inequality is low,
social welfare is strong, and the government prevents the economy from the market
crash.