Wednesday 19 July 2017

17 Difference Between Capitalism And Socialism

1. In a capitalist economy, property, and businesses are owned and controlled by individuals. In a socialist economy, the state owns and controls the major means of production.
2. Under capitalism, companies live by the profit motive. They exist to make money.
3. Socialist systems emphasize equal distribution of wealth among the people.
4. In a pure socialist economy, there is no free market like we see in a capitalist nation.
5. A capitalist system is also called a free market economy or free enterprise.
6. The capitalist argument is that the profit incentive drives corporations to develop innovative new products that are wanted by the consumer and have demand in the marketplace.
7. In a capitalist economy, the state does not directly employ the workforce. This can lead to unemployment during times of economic recession. 
8. The modern world economy operates largely according to the principles of capitalism. The UK, US, and Hong Kong are mostly capitalist.
9. Union of Soviet Socialist Republics (USSR): although the actual categorization of the USSR's economic system is in dispute, it is often considered to be a form of centrally-planned socialism.
10. Capitalism affords economic freedom, consumer choice, and economic growth. 
Socialism provides for a greater social welfare and decreases business fluctuations.
11. An economy based on capitalism is invariably going to experience growth and decline.
12. Social Structure:
Capitalism:
The capitalists own shares of the means of production and derive their income in that way while the working class is dependent on wages or salaries.  
Socialism: Class distinctions are diminished. Status derived more from political distinctions than class distinctions. 
13. Religion
Capitalism:
Freedom of religion.
Socialism: 
Freedom of religion, but usually promotes secularism.
14, Prices:
Capitalism:
Determined by the market forces
Socialism:
Determined by the Government
16. Competition:
Capitalism:
Very High
Socialism:
No competition exists between firms.
17. Government Interference
Capitalism:
No or marginal
Socialism:
Government decides everything.


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