Compare And Contrast Capitalism And Socialism

Capitalism is an economic system that is based on private ownership of production and individual economic freedom. Generally, the means of production are operated for profit. In a complete capitalist economy there would not be public schools, state owned roads and highways, public works, welfare, unemployment insurance, workers compensation, or Social Security benefits. Decisions are made about what and when to produce and set the pricing for how much products cost. In Capitalism, competition should exist without any interference from the government. Because consumers seek the best product for the least amount of money prices should be kept as low as possible. In a capitalistic economy, prices are determined by how many products there are
Socialism attempts to emphasize economic equality and values workers by the amount of time they put in rather than by the amount of value that they produce. With Socialism, people depend on the government for everything from food to health care. Socialism relies on government planning rather than the free market in order to distribute resources. Individuals can live in a socialist country and own a business however they will be taxed very heavily on their profits. Many public services are available and are paid for by taxpayer money. Although citizens are expected to work, the government will provide free or low cost services that include education, healthcare, and public transportation. Socialist countries will usually have very extensive welfare systems in order to aid the unemployed, disabled and elderly. Labor laws are very strict in order to provide employees from being exploited and include restrictions of work hours and mandate regular vacations, sick time and leave. Employers are not required to provide health insurance however health care is provided through national health care systems. Those who support Socialism believe that economic equality is created and provides economic