 Dear students, in this module, we are going to see the reaction of capitalism on socialism. Capitalism is a system that is based on private ownership of means of production and the production of goods and services for profit making. Capitalists argue that socialism is insufficient and inefficient because it eliminates the incentive to hard work and innovation and that it ultimately leads to economic stagnation and decline. Capitalistic system, because we see that competition-based and profit-making is the biggest motive for any capitalist so that he can invest his resources and produce new commodities for the people, but the biggest objection of the capitalist on the socialist system is that there is no incentive or motive to eliminate such a system from which competition is eliminated and that is why this system ultimately declines and this system fails. So the capitalist critique of socialism is based on the idea that the free market is the most efficient way to allocate resources and ensure the economic growth and innovation. This system is based on innovation, people have incentives and motives and that is why they invest and go into the profit-making system. But the socialist system produces a lot of stagnation and makes a huge profit. People have no motive to work in any economy and they know that distribution of resources has to be done on an equitable basis, so we don't have to work too much. We will also get as much as the rest of the people are getting. So on the whole, the key motive for a person in this system is to force them to work more and more towards profit-making and when that motive disappears, the capitalist thinks that the socialist system will ultimately collapse. In Pakistan, the capitalist ideas have influenced the economic policy with a focus on attracting foreign investment and promoting the entrepreneurship. So there is a capitalist motive in Pakistan, but the socialist policies have not worked in Pakistan in that way, but the majorly the capitalist system that we see in the world as a prevalence is probably because the strongest motive in this is profit-making and competition. On this basis, capitalism is successfully seeing us in the world today. Understanding the capitalist view of socialism is essential for analyzing the social and economic challenges facing the contemporary societies. Today's world has major challenges, we see them, whether they are political or economic challenges, so we see that the capitalist system is providing solutions to them. However, what we see in the socialist system is that it reflects a kind of utopia, a thought that cannot be acted on, ideally it feels good to hear, but it is not possible to act on it. Because the major reason for this is that whenever the socialist system is trying to enter the world, then that effort or effort cannot be successful. On this note, we see that the capitalist system is prevalent in the world and the major reason for this is that because it believes in the free market economy and it has equal motive for the individual so that they can work hard, innovate and produce more commodities for the sake of profit-making. So the study of capitalism would require a multidisciplinary approach. We do not see it as just an approach. We do not see it as a result of which socialism could not be successful. We have to judge it and analyze it so that we can see what are the possibilities in the future and what kind of economic system can be on the strong position. What we see in the world is capitalism. So will socialism be able to make its place in the coming time or not? It's a food for thought for you.