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Difference between Socialism and Capitalism
Jun
16
2011
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Answer #1
Difference between Socialism and Capitalism
Socialism and capitalism are both economic systems each with different principles and goals. Each system aims to bring positive outcome to the society, economy, and the people, yet, the strategies and rules may differ.
Capitalism and socialism differ in ownership. Private individuals can put up business in capitalism which may help the community or their own lives to prosper. This is not the case in socialism since it believes that everybody must be equal in rights. In socialism, the goods are owned by the public or the state. There is no competition in socialism since it promotes equality in the distribution of goods. Capitalism, however believes that competition is the best way to improve the economy because the goods sold are of top quality.
In capitalism, there is the motivation to work for your own good. You compete with other business owners to increase your wealth. In socialism, you work not for your own self but for the common good of all.
In terms of government control, socialism is much more dependent on the government because the state controls the decisions of manufacturing and distribution. In capitalism, the decision lies on the hands of the private owners. The government has no right to interfere; it can only impose laws which will be followed by the capitalists.
There are debates which is a better system between the two. Others would prefer capitalism because there is assurance in quality because of competition. However, others believe that capitalism favors the rich because they are the only ones who can put up a business and can compete with tycoons. Socialism favors the working class because what wealth the owners enjoy can also be enjoyed by the laborers. In short, socialism defeats the purpose of power and competition. However, if there is no competition, best quality could not be ensured.
Whichever is better would depend on the governing. Whatever system is used, would still depend on how the state manages its people and economy.