whats an easy definition of socialism and capitalism? whats an example of both of the words?

Question

Im going to have a quiz on this and ive tryed looking them up but i need a very waterd down definition.

Answer 1

Socialism: a political theory advocating state ownership of industry.

Capitalism: an economic system based on private ownership of industry and resources.

Socialism advocates a model where the government has primary or exclusive control over production (farms, mines, utility companies, manufacturing, etc). It is a political model because it necessary involves the relationship between government and the populace.

Capitalism is an economic model, and can exist equally well under democracy, a representative republic, or a tyranny. It has nothing to do with how laws or made or the relationship between the government and the populace.

{EDIT to KevinP} Actually, under socialism the government owns the cows (not you), and gives everyone an equal share of the milk. Under communism, everyone theoretically owns the cows together, even if you do all the work producing the milk.

{EDIT as requested by asker, and credit to KevinP for original quote}

Capitalism. You own two cows. You raise them, feed them and house them. You do all the work, and you sell the milk for as much as people will pay. You keep the money, except for what you pay the govt as tax. Other people can own cows as well, and they get to compete with you in the marketplace.
Communism: You own two cows. Actually they are owned by everyone in the community, but you do all the work. You raise them, feed them and house them. The govt (community) takes all the milk and gives everyone a share.
Socialism: The government owns all the cows. The government pays to have them raised, owned and housed, and pays someone to milk them. Everyone gets a share of the milk.

Answer 2

Socialism is the idea that the working class, the class that produces the profits, the wealth, the cars, houses, planes, steel, should take over and run things collectively, democratically, for the benefit of the majority (who also "just happen" to be workers too).

Communism is the idea that society should not have classes - exploiters and exploited, oppressors and oppressed, and so on.

The difference between the two? There isn't one; they are both stages of the same thing. If the working class takes over and runs society for human need, and the capitalists' resistance is crushed and they get hungry and have to get jobs like everyone else, then we have a society without class divisions, or a classless society.

Today we live in a capitalist society - with gross class inequalities. If we want a society where everyone is truly equal (communism), we cannot get there overnight. Socialism is the bridge between capitalism and communism; it is a transitional period that has features of both the society of yesterday (capitalism) and tomorrow (communism) because it will inherit the world capitalism has left it.

Instead of people and money going into something like, say advertising, we could use those skills and talents and money in schools, or in health care. Nuclear arsenals will have to be dismantled, the steel and concrete used to build things that we need, like housing for the homeless.

While production will be for human need, there will be some need for a state apparatus to ensure that the capitalists don't come back and restore their rule. But eventually, if the capitalists are overthrown in country after country, they will have no haven in which to hide and plot; they will get tired and hungry, and have to come back and get jobs in the factories with the rest of society.

When everyone has the same relationship to the means of production - when every member of society has direct control over his or her workplace - then we will have communism.

Answer 3

John Keynes, the father of modern economic theory, defined "pure capitalism" as a situation where no business has the strength to dictate the economy (ie. no Microsofts) and no consumer has the strength to dictate the economy (ie. no luxury market).

Oddly, this is also a valid definition of socialism....

Some will claim that socialism is about government control of the economy; that is communism, not socialism. In fact, the "new socialism" which is arising in South America is one that people should pay attention to: Let the economy function on its own, both business and consumers. Where there is a need and business will not fill it, the government should step in and fill that need.

The freely elected socialist governments in Argentina, Brazil, Chile, Bolivia and Venezuela are NOT anti-capitalist, despite what FAUX "news" and Jeff CNN tell you. Said governments ONLY step in and dictate the economy when business and the economy fail to provide enough products, services or jobs. Where the economy and businesses meet those needs, those governments keep their hands off.

Answer 4

"The vice of capitalism is that there is an unequal share of the blessings; the virtue of socialism is that there is an equal share of the misery." -Sir Winston Churchill, British statesman (1874-1965)

That is an easy understanding of the results of each.

Answer 5

Socialism. You own two cows you raise them feed them and house them. The government takes the milk. and give you the same amount of milk as people who dont own any cows.
Capitalism. You own two cows. you raise them feed them and house them. you milk them and sell the milk for as much as people will pay and keep the money, except for a small amont of money you pay the government as tax.