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What's the difference between Capitalism vs. Socialism?

What Makes Capitalism Different From Socialism?

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What is Capitalism?

• It is a political and economic system that runs on individual rights.
• It encourages its citizens to be more productive and innovative by putting an emphasis on inequality.
• Capitalists have this belief that people would work hard to prosper if they are competitive enough and have the drive to reach the top of the corporate ladder.
• In a capitalist country, being a lazy bum would get you nowhere. If you won’t work, then nothing is going to happen in your life.
• The market in a capitalist society has a level playing field and it is characterized by free and equal trade.
• The levels of supply and demand are the ones which dictate the price of the commodities in the market. The state never interferes with this system. It just sets the regulations and laws that traders need to adhere to.
• Privately owned resources are all over a society which operates on the principles of capitalism.

What is Socialism?

• It is a type of economy which has councils or communes that control the resources of the country.
• This system is done to promote equality among all the sectors of the society.
• Regulation upon the distribution and production of products in a socialist economy is evident.
• The distribution of commodities is based on the citizen’s financial contribution to the society.
• Socialists focus on improving the work ethics of the country’s citizens by giving them the commodities and goods that they need in return of the quality work that they are doing for the whole country.
• The prices which are being passed on to the citizens are also closely monitored.
• Competition doesn’t exist in an economy governed by socialism because a market is non existent as well.

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