Capitalism vs Socialism

This chart is an excellent comparison between the two systems.

                                                   Capitalism Socialism
Philosophy: Capital (or the “means of production”) is owned, operated, and traded for the purpose of generating profits for private owners or shareholders. Emphasis on individual profit rather than on workers or society as a whole. From each according to his ability, to each according to his contribution. Emphasis on profit being distributed among the society or workforce in addition to receiving a wage.
Ideas: Laissez-faire means to “let it be”; opposed to government intervention in economics because capitalists believe it introduces inefficiencies. Free market produces the best economic outcome for society. Govt. should not pick winners and losers. All people should be given an equal opportunity to succeed. Workers should have most say in their factory’s management. The free market suffers from problems like tragedy of the commons. Government regulation is necessary.
Key elements: The accumulation of capital drives economic activity – the need to continuously produce profits and reinvest this profit into the economy. “Production for profit”: useful goods and services are a byproduct of pursuing profit. Economic activity and production especially are adjusted to meet human needs and economic demands. “Production for use”: useful goods and services are produced specifically for their usefulness.
Economic coordination: Relies principally on markets to determine investment, production and distribution decisions. Markets may be free-markets, regulated-markets, or may be combined with a degree of state-directed economic planning or planning within private companies. Planned-Socialism relies principally on planning to determine investment and production decisions. Planning may be centralized or decentralized. Market-socialism relies on markets for allocating capital to different socially-owned enterprises.
Ownership structure: The means of production are privately-owned and operated for a private profit. This drives incentives for producers to engage in economic activity. The means of production are socially-owned with the surplus value produced accruing to either all of society (in Public-ownership models) or to all the employee-members of the enterprise (in Cooperative-ownership models).
Political movements: Classical liberalism, Social liberalism, Libertarianism, Neo-liberalism, Modern Social-Democracy Democratic Socialism, Communism, Libertarian Socialism, Anarchism, Syndicalism
Economic System: Free-Market economy. Wealth redistributed so that everyone in society is given somewhat equal shares of the benefits derived from labor, but people can earn more if they work harder. Means of production are controlled by the workers themselves.
Key Proponents: Adam Smith, David Ricardo, Milton Friedman, Fredrich Hayek, Ayn Rand Robert Owen, Pierre Leroux, Karl Marx, Fredrick Engels, John Stuart Mill, Albert Einstein, George Bernard Shaw, Leo Tolstoy, Emma Goldman
Way of Change: Fast change within the system. In theory, the relationship between buyer and seller (the market) is what fuels what is produced. Government can change rules of conduct/business practices through regulation or ease of regulations. Workers in a Socialist-state are the agent of change rather than any market or desire on the part of consumers. Change by the workers can be swift or slow, depending on change in ideology or even whim.
Religion: Permitted/Freedom of Religion Freedom of religion constrained. Considered “the opiate of the masses”

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