Theories of accumulation claim that economic development is based on wealth accumulation. However, within theories of accumulation, capitalist perspectives and socialist perspectives differ in their understanding of how economic systems work. Define the prevailing notions regarding this critical step in economic development. Which one do you think is more accurate? Why?

Question

What will be an ideal response?

Answer 1

The ideal answer should include:
1. Describe theories of accumulation, touching on how economic development is based on accumulation.
2. Explain prevailing notions of how economic systems work in relation to wealth accumulation. Such notions depend on one's approach being that of either a capitalist or a socialist. The capitalist perspective stresses overall efficiency in maximizing economic growth, whereas the socialist perspective is more concerned with the distribution of wealth than with its creation. The difference in perspective has implications for contemporary views on the gap between income levels in the world's industrialized regions and those in the global South.
3. Provide a succinct reasoning for which one is most accurate, and why. This will hinge, in part, on one's chosen perspective, but regardless of perspective one should take into consideration issues of maximizing economic growth, capital accumulation, economic surplus, etc.
4. Offer a concise summary and effective conclusion.