Answer to Question #186778 in Management for Lucy

Question

Consider the following statement: "Greed is a stronger human emotion than trust." Critically evaluate the statement and do some research on suitable economic systems for South Africa.

Answer 1

South Africa has endemic corruption, like many African countries. A “socialist” system is a paradise for corrupted officials because all the wealth of the country is in a few hands - socialism moto is to have the property of the means of production in the “hands of the people” which translate “in the hands of the political class governing. This accumulation of wealth is fertile ground for corruption.

By contrast, the capitalist system makes every capitalistic agent or entrepreneur pay for their expenses including corruption, the difference is that the corruption is paid now by private entities and not from the fiscal coffers.

Capitalism is a distributed corruption difficult for the corrupt while socialism is a concentrated corruption very easy for the corrupt.