Capitalism vs Socialism

310 Words2 Pages
Capitalism and socialism are both effective ways off running the process of an economy. People have different opinions and perspectives of the two. They share the same motive for boosting the economic process. However, they differ in their approaches towards the goal of production and profits. Capitalism is a more superior system than socialism. An economic system that features private ownership of the means of production and in which market forces determine the way goods are produced and by which income and profit are distributed is called capitalism. Socialism is a political and economic system in which most forms of economically valuable property and resources are owned or controlled by the public or the state. Capitalism is based on private ownership of the means of production and on individual economic freedom. Most of the means of production, such as factories and businesses, are owned by private individuals and not by the government. Private owners make decisions about what and when to produce and how much products should cost. Capitalism is based on free competition and supply and demand. However, socialism puts control of production in the hands of the people, either directly or through the government. Socialism also believes that wealth and income should be shared more equally among people. Their main goal is to diminish social classes. The government has a responsibility to redistribute wealth to make society more fair and just. However, capitalism and socialism are similar in a few ways. Capitalism is similar to socialism in that everybody should ideally get out what they put in proportionally. They despise free enterprise. Both require strong government support to survive. Both have a large numbers of supports. Capitalism is more effective and innovative than socialism. It creates a motive for hard
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