Difference Between Socialism and Capitalism

Socialism and capitalism are two popular systems that are working in many countries of the world. Socialism is an economic system that supports to the equality of all members of the society. In socialism, the affairs of the country are governed by the councils or those members who are elected by the general masses or common people. However, capitalism supports the individual rights which are based on political and economic system. In this system, the society is owned by the private individuals or different individual groups. Keep reading this article to know the difference between socialism and capitalism.

Instructions

  • 1

    The basic objective and purpose of socialism is to create a society in which all individuals are equal and are governed by those who are elected by these common people.

    On the other hand, capitalism does not support the quality of all people in the society. It supports inequality in which a few people, who are rich and powerful, enjoy the authority to control the society.

  • 2

    In a socialist society, the prices and quantity of products is regulated properly by the elected members of the state and consumers get their required things on those prices.

    Whereas in a capitalist society, a few individuals or groups of individuals regulate the quantity and prices of things and it differs from one area to the other.

  • 3

    The trade market, in socialism, is strictly regulated and monitored by the state and there is no concept of free trade in the market based on individual’s own desires.

    In capitalism, individuals freely trade and the government works in the background. Government makes such regulations that allow the powerful individuals to operate the supply and demand of the market.

  • 4

    In socialism, people cannot decide the flow of supply and demand as it is regulated by the state and no one can influence on it individually.

    On the contrary, capitalism supports the variation of prices set by individuals or the group of individuals according to the variations in the supply and demand of things.

  • 5

    In socialism, people work hard for the welfare of society and get reward according to their contribution in the overall productivity.

    Whereas, people in a capitalist society, people are provided equal opportunities to work for their own benefits on individual basis that leads to inequality as some people become wealthy and start controlling the society.

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