Difference between socialism and capitalism

 Capitalism and socialism are generally seen as polar opposites, and discussions of either system are often framed as in opposition to the other. The modern idea of socialism has roots in Greek philosopher Plato but emerged as a popular political idea in the early 19th century among German radicals like Karl Marx and Friedrich Engels. There are many forms of socialism, but at its core, socialism is an economic system in which a whole community — not just bosses or private companies — control the means of production equally. It assumes that people are naturally cooperative, instead of competitive. The goal of socialism is an egalitarian society run by democratically elected representatives for the benefit of all in accordance with a set of collectively determined parameters; unlike under capitalism, industry and production is run by the state, and the acquisition of private property is seen as counterproductive. Capitalist critics of socialism believe that the system slows economic growth, rewards worker laziness, and can stifle individual rights and free expression.

In a capitalist country, the focus is on profits over anything else; in a socialist country, the public is seen to be more important, and social welfare is a major priority. The United States, the U.K., and Germany are examples of modern capitalist countries. Many other countries like Norway, Sweden, Canada, and the Netherlands incorporate socialist ideas into their societies, as does the U.S. to some degree; for example, universal health care and Social Security are both socialistic concepts

Effects of capitalism

 The kind of impact that capitalism has on your life depends on whether you’re a worker or a boss. For someone who owns a company and employs other workers, capitalism may make sense: The more profits your company brings in, the more resources you have to share with your workers, which theoretically improves everyone’s standard of living. It’s all based on the principle of supply and demand, and in capitalism, consumption is king. The problem is that many capitalist bosses aren’t great at sharing the wealth, which is why one of the major critiques of capitalism is that it is a huge driver of inequality, both social and economic.

Capitalism takes the position that “greed is good,” which its supporters say is a positive thing — greed drives profits and profits drive innovation and product development, which means there are more choices available for those who can afford them. Its opponents say that capitalism is, by nature, exploitative, and leads to a brutally divided society that tramples the working classes in favor of fattening the rich’s wallets. The Occupy Wall Street movement, for example, began as an anti-capitalist protest against “the 1%” — the richest of the rich of the capitalist class — and asked why they are allowed to grow fat and happy while 20% of all American children live in poverty