Defining Capitalism and comparing Capitalism to Socialism
Capitalism is an economic system in which natural resources and the means of producing goods and services are privately owned. Capitalism and Socialism are both economic systems and are used in different societies throughout the world. Even though both of these systems are implemented, they do have some ...view middle of the document...
They also have strong control over the general population of the world. The main comparison between the two of them is that both retain property and the means of production, but both in different forms. Contrasting Capitalism and Socialism, components of Capitalism are that private individuals own the means of production, they market to compete with each other and the individual decides what to produce, how much to produce and what price to sell items at and the pursuit of profit, private owners decide what the products should cost for receiving a profit. With Socialism the public or government owns the means of production, the government forms a committee to determine how many items will be produced, the cost, what factories will make them and where the product is going to be sold and there is no motive for making a profit. Socialism is designed to eliminate competition and there goal is produce goods for the general welfare and to distribute according to needs. Capitalism is focused on how much people are willing to pay. The overlap in Capitalism and Socialism is that when nations industrialize, they resemble each other producing similar products and divisions of labor. The convergence theory is a view which points to a mixed economy.