Explain how some features of capitalism tend to promote freedom and democracy. Capitalism is dependent on the respect of property rights, the dissemination of information and the rule of law. Capitalism leads to greater individual wealth which in turn leads to demands for democracy.

in an autocracy, the beneficiary of government decisions tends to be the government itself, while a representative democracy benefits the people.

The rights of minorities are much better protected in a representative democracy where at least all groups are given the opportunity to voice their opinions to government where as in an autocracy and oligarchy, the rights and voice of the people almost non existent, especially that of the minorities.

The Concept of Economic Freedom. The freedom of action given to private owners under a system of capitalism is why the index that ranks states and countries is called the ‘economic freedom’ index. Economic freedom is synonymous with capitalism.

Capitalism is the only system which protects individual rights and freedom, but the variety of political systems which violate individual freedom are numerous: socialism, communism, fascism, Nazism, absolute monarchies, military dictatorships, theocracies, or the welfare state are all systems which infringe upon …

Socialism and communism are alike in that both are systems of production for use based on public ownership of the means of production and centralized planning. Socialism grows directly out of capitalism; it is the first form of the new society. Communism is a further development or “higher stage” of socialism.

Today, there are few if any developed countries that are 100% capitalist or socialist. Indeed, the economies of most countries combine elements of socialism and capitalism. In Norway, Sweden, and Denmark—generally considered socialist—the government provides healthcare, education, and pensions.

Socialist Economies: An Overview. Capitalism and socialism are economic systems that countries use to manage their economic resources and regulate their means of production. In the United States, capitalism has always been the prevailing system.

Pros of socialism

• Reduction of relative poverty.
• Free health care.
• Diminishing marginal utility of income.
• A more equal society is more cohesive.
• Socialist values encourage selflessness rather than selfishness.
• Benefits of public ownership.
• Environment.
• Reduced hidden taxes.