The allocation of scarce resources for people's unlimited desires is a vital aspect of life that affects both well-being and fairness, and how much each person gets depends on the economic system in progress. In this essay I intend to argue in favor of regulated capitalism and demonstrate that it is in fact efficient, fair and workable. In doing so, I will begin by examining the extreme cases that economic systems can face and how these prove to have shortcomings. On one side of the spectrum we look first at pure capitalism and on the other at pure socialism. I then move on to look at the consequences of these systems to identify the morally correct one based on the consequences that the economic system entails. I will then conclude by examining the best system, regulated capitalism, which refers to a system that recognizes the flaws of pure capitalism and corrects them by including socialist aspects into the system. Pure capitalism refers to economic liberalism in an economy where there is private ownership of factors of production, no state intervention, and where individuals are responsible for their own well-being. Capitalism in its purest form is believed to be more economically efficient but unjust than socialism. Although pure capitalism is purely theoretical and does not exist in reality, in a purely capitalist society the prosperity of the economy is fueled by incentives. Adam Smith wrote: “In pursuing his own interest he often promotes that of society more effectually than he really intends to promote it.” This is in fact true because thanks to the voluntary ability to act in our personal interest we are willing to give up what we have for what we wish to have. This then requires producers to produce… middle of paper… resulting in regulated capitalism being the most morally favorable system. In the essay above I clearly showed how pure capitalism is efficient but at the same time unfair. on the one hand and how socialism is not right and impracticable on the other. The results obtained demonstrated that none of these systems is morally the best, but that regulated capitalism is in fact the best system available. The fact that this system enables efficiency in a regulated way, minimizing exploitation and inequality, and promoting fairness by introducing social safety nets and regulations that protect both the rich and the poor, clearly makes it the better alternative. Therefore, until a better economic system comes to light, regulated capitalism will remain as close as possible to a morally acceptable system that benefits both individuals and society at large..