Difference Between Capitalism And Socialism

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Capitalism vs. Socialism Have you ever wondered what the difference is between capitalism and socialism? People throughout the ages have argued that one is beneficial while the other is not although there have been governments throughout the ages with a mixture of capitalism and socialism. Capitalism and socialism are both economic systems, however, they have strong differing ideas about government intervention when it comes to the economy. Capitalism primarily puts the control of the in the hands of the people through consumer choice, whereas socialism gives government control of the economy leaving the individual powerless. Socialism does not allow the individual to choose what is done with the money he earned thus giving control to the government. In socialism there is little chance of…show more content…
The state owns everything for the benefit of the community. The government owns most of the means of production. This economy does not have much incentive to cut cost because there is no competition. Since the government has ownership of businesses, there isn’t much unemployment because the state would provide jobs even if they aren’t essential or beneficial. Socialism allows for the total state ownership of business, so the government also determines prices. In this case the state not the market or consumer choice determines the price of items. To keep everyone equal, the state controls prices so that the price of goods is not too high and there is not a large margin of profit. In conclusion, both capitalism and socialism are economic systems with very different views on government intervention. The key components of both systems are completely different, but both seek to have a prosperous society. “The problem with socialism is that you eventually run out of other people 's money.” (Thatcher, Margaret). For the reasons listed above, capitalism seems to have better ideas regarding the economy and government

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