The 6 Differences Between Capitalism And Socialism
In part, what has happened on a global scale over the last few 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 of history, as it has caused military crises, created political and social initiatives and modified our way of thinking.
In this article we will see what are the main differences between socialism and capitalism and what are the ideas on which they are based.
It must be taken into account that today There are no places where pure capitalism and pure socialism exist but because of their opposition, what happens in one always causes something to change in the other.
That said, let’s see how they differ.
1. The role given to the State
In capitalism, the State is fundamentally seen as an entity that is responsible for preventing its inhabitants from violating the fundamental rights of their fellow citizens, whether by physically attacking or stealing and destroying elements of their property. Additionally, the State may place more or less emphasis on redistribution
In socialism, on the other hand, the State is seen as a machinery through which one social class imposes its interests on the other. Therefore, well-off minorities can protect themselves from attempts to collectivize resources.
Thus, one of the main objectives of socialism is make the state disappear completely Of course, in this aspect communists and anarchists differ: the former believe that this process must take place over 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 series 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 any good. ).
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 perform and products to acquire is equivalent to freedom.
In socialism, on the other hand, consumerism is avoided and the principle of equality is defended more since without this there are people who are forced to choose between a reduced range and unattractive options, because there is a ruling class (which, in practice, means that there is no freedom).
Another of the big 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 guaranteed quality of life systematically for the majority of the population.
In socialism not everything revolves around competition, which does not mean that you do not work (if you do not do so while being capable, there are sanctions). This is because in this system basic needs are met.
5. Production system
In capitalism, special attention is paid to the need to constantly produce and open new types of markets by creating products or services. This is 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 clients, or to open a new market niche with a product or service that has nothing similar to compete with.
In socialism, on the other hand, there is no need to constantly produce new goods and services, but it is only done when there is a clear need.
6. Focusing or not on individual interest
In capitalism, the wills of individuals take precedence, which means that the idea of a planned economy is rejected. This is because it is understood that there needs to be free market, understood as a context in which there are the minimum possible regulations in the exchange of goods and services. Furthermore, it is assumed that the value of a good or service is subjective, so all those whose commercialization is viable have a reason: if there are those who buy it, it is useful.
In socialism, on the other hand, emphasis is placed on collective interests, so it is about addressing phenomena that affect everyone, such as crises in environmental preservation or sexism. The market still exists, but it is seen as a means through which objectively useful elements circulate for the population.
