A Comparative Analysis of the Driving Forces of Capitalist and Socialist Economies: Possibilities of Application in Ukraine

Abstract

Based on the application of the formation approach to the development of the economic and social structure of countries, a comparative analysis of the capitalist and socialist economies is carried out. The inconsistency of the materialist doctrine of the socio-economic formation is shown. The illegitimacy of ignoring spirituality, values of society and elites in the economic development of countries is proved. The thesis that the basis of society is not the economy but spirituality of society is substantiated. To understand the driving forces of capitalism and socialism, there used economics and chrematistics, the latter considers not physical indicators, as economics does, but is aimed at exploitation, usury. Approaches to the assessment of the economy as a dynamic, constantly changing internal and external social development are considered. There studied the evolution of capitalism in terms of improving skills of employees, level of income, formation of the middle class, creation of forms of social security — insurance, the pension system. It is proved that the fundamentals of capitalism remain unchanged: the industrial material and technical base, private ownership of the means of production, the social form of production under the private capitalist form of appropriation, liberalism as the dominant theory in economics. Characteristic features of the socialist mode of production, the Soviet economy are revealed. It is proved that all above mentioned ensured the application of countervailing mechanisms of economic development, active introduction of the achievements of scientific and technical progress, belief of the population in social justice in society, care of the state about man, and confidence in the future. Proposals are made as to changing the methodology of economic research and real reforms in favor of the primacy of fundamental moral values, evaluation of activities by physical rather than cost indicators.