Socialism has a number of theoretical benefits, based on the idea of social equality and justice. Advantages of socialism relating to social equality include a focus on reducing wealth disparities, unemployment and inflation (through price controls). Advantages of socialism related to economic planning include an ability to make good use of land, labor and resources, as well as avoiding excess or insufficient production. Additional benefits of Socialism: Nationalization of key industries, redistribution of wealth, social security schemes, minimum wages, employment protection and trade union recognition rights.
Many people believe that capitalism is the best mode for the country, as it brings an invaluable benefit for the economy. Economic freedom helps political freedom. If governments own the means of production and set prices, it invariably leads to a powerful state and creates a large bureaucracy which may extend into other areas of life. There are no better alternatives. As Winston Churchill, ""It has been said that democracy is the worst form of government except all the others that have been tried." A similar statement could apply to capitalism.
The gap between poor and rich countries has never been as great as it is today, Warren Buffet's wealth was estimated to be a net worth of approximately US$62 billion in 2008 , this while one in seven people on earth goes to bed hungry every night and 6.54 million children die of starvation and malnutrition every year . The absurd inequality between people's wages is because of the capitalist system, since the capitalist's only aim is to generate profit there is no reason to keep anything other than a minimum wage for the workers. In a globalized world, rich countries can outsource industries to poorer countries where workers will not expect so high a wage. The lower the wages a capitalist can pay to the labourers, the more profit he can generate. A capitalist does not care whether his labourers' living standards are good, acceptable or bad (although he does want to maintain a level where the labourers will not die or rebel), as long as they deliver the work for the lowest wage possible . Therefore a company CEO can gain an absurd amount of money since he will reap all the profit made from all the labourers in his company while the lowest worker in the hierarchy will only earn enough to survive. The ordinary worker does not have a free choice whether he wants to work or not since he is at such an inferior bargaining position that he has to accept the capitalist's offer in order to survive.
According to socialism this inequality is atrocious, it can by no means be justifiable that an ordinary labourer who works equally as hard, or harder than a CEO should struggle for his survival while the CEO lives in unimaginable luxury. In socialism, production and wages are directed to human needs, there is consequently no need to maximise profit and thus this gross inequality would be evened .