What are the differences between the economic systems of capitalism and socialism?

Answer 1

Answer 1

The most obvious difference between these two is their economic philosophies, in socialism the economy is usually controlled by a private company and this company is owned by the government of that nation. Now in capitalism the economy is run by the people and the government usually stays out of the way.

Answer 2

Capitalism refers to individuals owning private property. They buy and sell resulting in profit or loss. If you have good business practices, you make money. If you have bad business practices, you fail. Therefore, it is kind of self-regulating. Just. You reap what you sow. Although, there is lots of room for abuse, (big companies can use their money as an advantage over smaller businesses. Monopolies are an example.)

Socialism refers to the government being the sole owner of private property. (In that, there is none. "Private property" actually belongs to the government.) Anything you produce gets "donated" to the government and is then "distributed" based on need. (Google the term: "From those with ability, to those who need) While this sounds wonderful: "Hooray! We'll all be equal and everyone will get what they need!"....in reality YOU don't get to determine who "needs". The government does. Therefore, you may slave away, make all kinds of things, and be super productive....only to have the government determine that Joe Smith needs the fruits of your labor more than you do and reward him. Kind of like the welfare system in the U.S.: Bob works hard, makes money, and pays taxes. Steve sits at home, watches T.V. and gets a welfare check from the tax money collected from Bob. After all, he needs it more than Bob does.

Answer 2

This is a complex question: I am going to do my best to try to differentiate & compare the 2 things, bearing in mind another thread which involves myself & Redbeard. Socialism co exists alongside a Capitalist system. The money supply is established by a central banking system independent of Government control. It is important to recognise that all of society is important & valued. The provision of Education & Health is a central part of the social system & should not be in private hands, it should be Public. Those that have most have to pay most, the very, very wealthy have to pay most (Taxation) There is nothing to stop people making money in a Socialist system, but those that achieve wealth are not to expect to be rewarded without paying tax. In a wholly capitalist system it seems to me that the idea of paying for Public funding is in someway seen as being detrimental. I do not accept this argument. I expect to be taxed at a rate which is representative of what I pay for & receive from society. I go to work as a benefit not only for me & any dependants I may have, but also for the benefit of the society I live in & interact with. And as I live in Britain I see the funding of the BBC as a very good thing, we all pay a licence fee ( a form of taxation) to have a free to air television & media system. (Quite right too !) Capitalism co exists in a Socialist system. Socialists are not anti Capital. Now Mr Redbeard, just where does the name or ideals (such as they were) of Adolf Hitler appear in the above ?

Answer 3

Capitalism is wholly an economic system and socialism is not. Socialism is a political theory that government may plunder economic systems and redistribute the wealth that was plundered. Capitalism relies heavily upon free market principles and Socialism ignores willfully all market principles. In a free and unregulated market prices of goods and services will fluctuate with supply and demand, in Socialism prices will be artificially suppressed, without regard to the cost in relationship to demand. The socialist agenda either doesn't understand or doesn't care that price controls are not cost controls, and the problem with artificially suppressing prices is that those who stand to lose by such suppression will stop producing, and this in turn creates a bigger demand. The smaller the supply in relation to a growing demand, the higher prices get and no amount of government control can stop this basic law of economics.

Answer 4

Communism is a very specific political system with an attached economic system, which was developed by V.I. Lenin to bring about the social and economic ideas of Marxism.

Socialism is a very broad group of economic theories based on the ideas of collectivism and group sharing. When capitalized, it is sometimes treated as being a synonym for the Marxian economic theory. In addition, some people use the term as a generic description for all forms of political systems which use the socialist economic theory, though, this is etymologically incorrect.

Capitalism is an economic theory, best described in Adam Smith's work Wealth of Nations.

Answer 5

In theory, for 99% of the population, yes. For the other 1%, their lives will still be good, just not extravagant and filthy rich. There have been no truly socialist states, only fake socialist states, or part-socialist part-capitalist sates, so we can't really know weather it would work or not.

I think it could work better than any other economic system used so far, if the transformation happened under the right conditions, but we don't know for sure. This is not an easy question to answer, and I think each person has to answer it for themselves.

Answer 6

Yes. Both capitalism and socialism are economic systems. Capitalism argues that economies should be run primarily by business owners and their choices. Socialism argues that economies should be run primarily by the government.

Answer 7

Yes, but also social systems. Capitalism has production for profit and class ownership. Socialism has common ownership and production for use.

Answer 8

Most economic systems today are considered mixed economies.

Answer 9

The US is capitalist: ownership by a tiny class of capitalist, wage labour, production for profit.

Answer 10

yes