There is no gainsaying the fact that the writer

Directions: Answer the given question based on the following passage:

Capitalism is a system based on the principle of individual rights and responsibilities. The bulk of economic activity is organized through private enterprise operating in a free market. Each person survives and flourishes based on his freedom to use his ability. Individuals and companies are allowed to compete for their own economic gain. Market forces determine the prices of goods and services. Such a system is based on the premise of separating the state from the industry. The role of the state is to regulate and protect. Each person has a right to the product of his own work and is driven to action by the opportunity to create wealth. Collectively, we create wealth for society.

In a market system, there are personal incentives for workers to do their jobs well, and for managers to make good decisions. It now seems obvious that a market economy is vastly more productive than one controlled from the centre. The extraordinary level of material prosperity achieved by the capitalist system over the course of the last two hundred years is a matter of historical record. Socialism, on the other, is a method of organizing a society in which the means of production and distribution of goods are controlled by the state and private ownership is controlled in the interest of the state. It is based on cooperation rather than competition and utilizes centralized planning and distribution. It propounds the idea of equality of income and property. Unfortunately, socialism has only led to the concentration of economic power in unaccountable centralized institutions. Under the socialist doctrine, as is practised by some emerging countries, there is an assumption that a limited amount of wealth exists in the world and must be divided equally among all citizens.

If the wealth of the world is equally divided among people throughout the world, there will, of course, be no rich people any more. But everybody will still be poor. You cannot distribute poverty. Socialists often forget that we have to first create wealth in order to distribute it. We have seen how such an economic system of centralized planning leads to ‘ordinary citizens in political fetters with low standard of living and little power to control their own destiny’. A popular joke on socialism is that in a socialist system there is no unemployment while, at the same time, no one works; no one works, but everyone still gets a salary; and while everyone gets a salary, there is nothing to buy!
Countries that have embraced capitalism and let free markets thrive have progressed. By leveraging the power of capitalism, the world has surely made tremendous advances. The world GDP has grown six-fold in the last fifty years. We have created tremendous economic capital, albeit for a small part of the planet.