The 6 differences between capitalism and socialism

In part, what has happened on a global scale in recent centuries has to do with the struggle between capitalism and socialism. The way in which these two economic, political and ideological systems relate to each other has been one of the main drivers history, as it has caused military crises, created political and social initiatives, and changed our way of doing business. to think.

In this article we will see which are the main differences between socialism and capitalism and what are the ideas on which they are based.

• Related article: "The 4 types of ideology that exist, and the values ​​they defend"

Differences between capitalism and socialism

Keep in mind that today there are no places where there is pure capitalism and pure socialismRather, because of their opposition, what happens in one always causes something to change in the other.

With that said, let's move on to see how they stand out.

1. The role given to the State

In capitalism, the State is seen fundamentally as an entity that is in charge of preventing its inhabitants from violate the fundamental rights of their fellow citizens, either by physically attacking or stealing and destroying elements of their property. Additionally, the State

can put more or less emphasis on redistribution.

In socialism, on the other hand, the State is seen as a machinery by which one social class imposes its interests on the other. For this reason, wealthy minorities can protect themselves from attempts to collectivize resources.

Thus, one of the main objectives of socialism is make the state totally disappear. Of course, in this respect communists and anarchists differ: the former believe that this process should occur over the years, while the latter believe in the possibility of abolishing it in a matter of hours.

2. Criticism of private property, or the absence of it

Private property is the cornerstone of capitalism, since capital is always something that belongs to a number of specific people, and not to everyone. That is why in this economic and productive system much attention is paid to the defense of private property.

In socialism, on the other hand, it is assumed that private property has no reason to exist, and that what is desirable is the collectivization of resources (although some of its variants only defend the collectivization of the means of production, not of any well).

3. Emphasis on freedom or emphasis on equality

In capitalism what matters is that everyone has the ability to choose from as many options as possible, at least theoretically. It is understood, therefore, that the absence or scarcity of prohibitions and the existence of a wide repertoire of actions to be carried out and products to be acquired is equivalent to freedom.

In socialism, on the other hand, consumerism is avoided and the principle of equality is more defended, since without this there are people who are forced to choose between a reduced range and few options attractive, because there is a ruling class (which, in practice, means there is no Liberty).

• You may be interested: "The 10 types of values: principles that govern our lives"

4. In one it is motivated to compete, in the other not

Another of the great differences between socialism and capitalism is that in the latter, people are educated to compete with each other, since there are no minimum guarantees of quality of life guaranteed systematically for most of the population.

In socialism, not everything revolves around competition, which does not mean that work is not done (in case of not doing it being capable, there are sanctions). This is so because in this system basic needs are met.

5. Production system

In capitalism, special attention is paid to the need to constantly produce and to open up new types of markets by creating products or services. This is so because due to the logic of its operation focused on competitiveness, there are always entities or people interested in displacing the competition and selling to their customers. or to open a new market niche with a product or service that has nothing like it to compete with.

In socialism, on the other hand, there is no need to constantly produce new goods and services, but only when there is a clear need.

6. Focus or not on individual interest

In capitalism, the wills of individuals prevail, which means that the idea of ​​a planned economy is rejected. This is because it is understood that there needs to be market freedom, understood as a context in which there are the minimum possible regulations in the exchange of goods and services. In addition, it is assumed that the value of a good or service is subjective, so that all those whose commercialization is viable has a reason to be: if there is someone who buys it, it is useful.

In socialism, on the other hand, emphasis is placed on collective interests, so it is about addressing phenomena that affect the whole world, such as crises of the preservation of the environment or the sexism. The market continues to exist, but this is seen as a means by which objectively useful elements circulate for the population.