The University of North Carolina at Charlotte

Inquiry Project: Synthesis Paper

S. Wyatt Shely
UWRT 1103-037
Ms. Caruso
October 6, 2015

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S. Wyatt Shely
Ms. Caruso
UWRT 1103-037
6 October 2015
Synthesis Paper
Poverty is an issue that affects humanity on every continent of the globe. It strips people
of their dignity, deprives them of basic necessities, and cripples their ability to flourish in society.
Even in the twenty-first century "poverty remains a global problem of huge proportions. Of the
worlds 6 billion people, 2.8 billion live on less than $2 a day, and 1.2 billion on less than $1 a
day" (World Bank VI). Although it would be ideal to totally eradicate povertys existence, the
first step is to identify the most effective and efficient ways it can be reduced. Socialism is based
on government ownership of production and distribution, while capitalism is based upon private
ownership of production and distribution. These two contrasting systems of government develop
opposing ideals within their societies.
When assessing strategies to decrease poverty, capitalists are critical of top-down
government funding as a strategy (Shirima 2). They do not believe that it is effective to
distribute money as hand-outs to those in need. There is evidence that supports this claim.
When President Johnson was President, there was an incredible amount of money being spent on
government programs aiding the poor, and the poor stayed poor (Stossel par.3). Perhaps a
more successful method would be to utilize privately owned charities that are locally based. The
privately owned territories are more acquainted with the problems connected to poverty,
therefore will be able to address the problems more productively.

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Economic growth is critical to escape poverty (United Nations Development Program).

In a capitalist society, economic growth is created from the private sector through the formation
of new businesses that provide jobs and stimulate the economy. The best way to do this is to
direct policy efforts towards promoting innovation and entrepreneurship (Shirima 10). When
people feel as though though they can create a business, the urge to work and climb oneself out
of poverty is enhanced. Also, as people begin to open up new business, more jobs begin to be
created, which leads to more wages being paid. Capitalists believe that entrepreneurial
economies are vital for the reduction of poverty. Countries that support entrepreneurial efforts
experience an increase of development within their economy. The constant filtration of nonbeneficial businesses along with the birth of new innovative businesses adds a sense of
competition to pro entrepreneurial economies. This economic activity provides a copious
amount benefits for a society from an increase in the number of jobs, to an enlivened
entrepreneurial spirit that anything is possible if one puts forth the effort. One might sum up that
the capitalist strategy of minimizing poverty is to promote entrepreneurial efforts to create
positive economic activity such as creating jobs, and to keep the government out of the private
sector including privately owned charities in order to support the more effective private
sector.
Socialism is quite different from capitalism. In a socialist society, there is the promotion
of "freedom and opportunity" to everyone through the collective ownership of factories and
production. This allows for everyone in society to share the benefits of production, rather than
the private owners of industry in a capitalist society reaping the profits (SLP). Governments that
are associated with socialism provide free healthcare to all of their citizens, provide free
education, and have substantial welfare systems. The way the governments pay for these

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expenses is through a higher taxation. It is important to know that in todays society there is not
a country with a government that is completely capitalist or socialist. Most governments in
todays society are a combination of multiple kinds. It is understood that the United States is
primarily capitalist in nature, but there are socialist aspects such as welfare, the military, and the
FDA. Primarily socialist countries include Canada, Norway, Finland, China, Denmark, and
Sweden. The reason that these countries are identified as socialist leaning governments is the
fact that they provide governmental policies such as free healthcare and education. Many
countries that tend to have more socialist policies have extremely prosperous economies such as
Norway. Not only is the Norwegian government providing free healthcare to all of its citizens,
but they are also maintaining a prosperous economy (Gilbert 2-3). Many countries that are noted
as being the most prosperous are Scandinavian countries (Norway, Denmark, Finland, and
Sweden) with socialist style governments that focus on generous welfare benefits and lots of
redistribution of wealth, yet they maintain civil liberties (Helman sec. 2 par. 9). It is incredibly
intriguing that people have two polarizing points of view on which governmental system is the
best for reducing poverty. Socialists supporters give a large amount of faith and control over to
the government, while capitalist supporters have little faith in the governments effectiveness.
Capitalists side with the power of the private sectors ability to create new enterprises which in
turn creates wealth.
The primarily socialist Scandinavian countries have some of the lowest poverty rates in
the world (Miller par. 1). As time has progressed, the countries have adjusted their tax policy to
appear more like that of a capitalist country. The Scandinavian countries, with the lowest
poverty rates in the world, have combined the best of capitalism and socialism in order to
reduce poverty to a record low (Miller par. 5). Another important note of these Scandinavian

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countries is their motive to promote entrepreneurial efforts. It seems as though the best method
to reduce poverty is to use the capitalist ideal of promoting entrepreneurship and innovation into
society to strengthen economic development, while simultaneously providing socialistic services
such as free healthcare, free education, and a strong welfare system in order to provide for
citizens basic needs. This creates a sense of security and inspiration within a society that
promotes growth.