What are the differences between these two economic systems? Specifically, what makes the two different. I understand that capitalism lets individuals handle their own businesses and production and distribution while socialism, the government controls all that. What else makes these two systems entirely different?
2007-01-29 12:12:35 · 3 answers · asked by flippinapple 2 in Social Science ➔ Economics
They are based on fundementally different philosophies. Socialism devalues freedom and the rule of law. The rule of law says you should keep what is yours, socialism says the government should decide on the distribution of resources. Socialism says it is bad to keep what you earned but good to take the earnings of others.
Capitalism is just another word for free enterprize. Which is based on service to your fellow man. You can only get paid and earn a living by providing goods and services that your fellow man wants and is willing to buy. It is based on and compatible with Freedom and the rule of law. Socialism is not.
2007-01-29 12:49:59 · answer #1 · answered by Roadkill 6 · 0⤊ 1⤋
Well I feel that the difference between two economic system is that socialism doesn't motivate people to expand or improve because the wealth distribution will be equal regardless of any creative ideas.
As for capitalism many individuals will thrive to be creative and be very motivated to come up with the next big thing to be that next millionaire. I hope that helps.
2007-01-29 12:42:43 · answer #2 · answered by Rain L 5 · 0⤊ 0⤋
well - according to the Communist Party of the USA, they are proponents of what they call "Bill of Rights" socialism. Check out their website...www.cpusa.org and read it. Under Bill of Rights socialism - we would have the same liberties we have now...the only difference is how the economy is handled. Which - take a look at how our stock traders handle oil and you can attest to the fact that the US could absolutely benefit from socialism. Hugo Chavez is absolutely right for wanting to nationalize utiilities in Venezuela. That means, what you pay today, you pay this time next year. No more rising oil prices...no more 15% increase on your cable and phone bill every year.
The USSA - United Socialist State of America. Sort of has a nice ring to it.
2007-01-30 05:59:52 · answer #3 · answered by luke_r1996 3 · 0⤊ 0⤋