Economic Theories Paper Our world needs help today, but which economic theory is the best option? There are many economic systems/theories that have their pros and cons, but only three have been used. The systems are: capitalism, socialism and communism. All these systems fall under economic theories, which is a theory that states that business activities are based on the production and consumption of goods. (“Wordnetweb.princeton) However, the dominant system is capitalism, which capitalism is, a social system based on individual rights, and is politically the system of “laissez-faire” freedom. (Rand) As for socialism, which is the opposite, the government controls and owns most of the means and production, that's the type of economic system it is. Despite this, the capitalist system is a successful system because it helps the country manage motivation, competition and commitment towards a goal from which it can benefit. However, if people depend on the socialist society, it has no incentive to increase efforts and freedom of choice is limited. This is why I and many people support capitalism because it is an efficient system that will keep the people and the country profitable. To begin with, capitalism is a system known for motivating and rewarding people for their hard work and new methods. This means that people who strive to achieve goals in life are the ones who benefit. Because “capitalism is the only social system that rewards virtue and punishes vice. This applies to both the company manager and the carpenter, the lawyer and the worker. will have to face the consequences. T... middle of the card... duals will not have a good start in life, because the family is theirs for a reason to support it. That's why the capitalist system becomes responsible because it has to take care of an entire family. Additionally Monopolies form in a capitalist society, but it is possible to manage them. As for a socialist state, there is perpetual monopoly, which controls people, limiting their freedom. To conclude, capitalism is obviously the winner, benefiting the world. For example, the right to private property, rewards and motivation, and increased competition, which helps society move towards cheaper and higher quality products. To add, allow inherited wealth and manage the creation of monopolies, which helps other individuals to grow, and with all the multiple benefits that come with capitalism, which makes it the most reliable economic system.