Socialism, to nearly all Americans was once seen as a direct enemy to democracy and capitalism. Today socialist ideas are more readily accepted, especially by those in democratic cities. Socialism to some, may seem the most fair, because incomes are equally distributed; but is that actually fair? If some one works a job that requires a higher skill level, should they make as little as some one who works a job that can easily be done by an unskilled individual? Socialism is similar to communism, in that they have almost nothing in common with capitalism, and they have class equality. In socialism the government owns the means of production. This gives the government a lot of power over the people. This is in heavy opposition to the U.S. constitution. Some may not mind such a large government if they had the people or party they wanted working within it, but that still takes power away from the people and a large government is bound to be corrupt.
One of the biggest problems with it in my opinion is that socialism is a system without reward. There is no point or reason to be innovative. In capitalism there are incentives to prosper and do better which play a large role in the free market. Another issue is socialism requires bureaucracy, which will grow, and as the government grows, it will become more centralized, more distant from the people and in the end more tyrannical. A third issue with socialism is the high tax rates. The tax rates are adjusted to people's income. which on the surface may look okay, if someone has less money they should give less, and someone who has more should give more, however, this is by no means fair. As I stated above it is not fair for some one with more education and a more skillful career to make the same as a high school student working as a waiter. This is part of the reason socialism takes out the innovation of the economy. Why would some one work extra hard and make the same as anyone else? If some one were to work harder and longer they would end up being taxed more and that is quite discouraging. A fourth issue is socialism tends to create a victim outlook. By this I mean that it looks to blame the rich for poverty, but in reality entrepreneurs are the blood of the economy. They risk a lot, and if they do well, they will likely end up creating jobs for people, which support the economy. Poverty stricken people cannot hire people and therefore do not stimulate the economy.
Socialism has quite a few issues that are fundamental to a flourishing economy. Capitalism while it may have its quirks, for example crony capitalism, it generally promotes business and a growing economy managed by the free market and wise business decisions. One quote I heard when I was volunteering on an ambulance was, "Money is like manure, you have to spread it around." The medic replied to the patient with, "Yes, but you can't spread it too thin." I feel this quote gives an accurate deception of the problem of socialism.