Question 1
In a capitalist economic system, private individuals or organizations own capital goods. In this economic system, market forces that include supply and demand determine the production of goods and services (Sharma, 2016). The strengths of this economic system are inclusive of it encourage economic freedom. The economic freedom provides entrepreneurs with the space to be innovative and invest in new products and services that can enhance economic growth. However, the primary weakness of this system is that it encourages monopoly power, through which firms can charge high prices for their commodities.
In a socialist economy, the state owns the means of production. For this reason, the state carries out economic activities to realize social gains, which indicates that personal interests are not important (Sharma, 2016). The fundamental strength of this economic system is that it does not encourage monopoly. For this reason, the exploitations witnessed in a monopoly are inexistent. However, the weakness is that the system encourages bureaucracy, which might slow down the economic growth due to the idea that the state determines all the aspects of the economy.
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In a mixed economy, all production activities blend capitalism with different kinds of regulation. In this case, production decisions in the market occur through market mechanisms, which are supplemented by slight planning by the state (Sharma, 2016). The strength of this system is that the state can intervene in the market, consequently minimizing monopolistic tendencies and encouraging trade by reducing restrictive trade practices. Conversely, the state protects the rights of entrepreneurs. One weakness is that the system creates a fear of nationalization.
One of the causative factors of class stratification relates to the unequal distribution of resources, which include ownership of the means of production and income inequalities. For instance, capitalism brings about conditions in the market that encourage individual ownership of factors of production, which can be a precursor to income inequalities. The inequalities cause class stratification.
Question 2
The power elite and the pluralist models provide means that allow for the development of different policies. According to Ferrante (2014), the power elite model is one in which a small group of wealthy individuals, military leaders, and political leaders, hold on to power, consequently controlling policy decisions in a particular country. Research suggests that money and power can influence the manner in which the government operates, makes laws, and elects people to administrative positions. On the contrary, the pluralist model provides that interest groups interested in public policy control the power of making policies (Ferrante, 2014). This model rests on the idea that interest groups can influence an election and policymaking by providing campaign contributions, through lobbying and propaganda. One of the possible strategies that could be used to reduce power inequalities includes the adoption of participatory decision-making. In this case, it is essential to design participatory methods that can assist in reducing the existing gaps of power that affect the national and international communities. Participation cannot limit decision-making since it focuses on including the monitoring and evaluation of the results that can affect social policies.
References
Ferrante, J. (2014). Sociology: A Global Perspective (9th Edition). Cengage Learning.
Sharma, S. (2016). Entrepreneurship Development. PHI Learning Pvt. Ltd.
