What Is The Difference Between Socialist Economy System And Capitalist Economy System?


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Matt Payor answered
Socialism is the idea of sharing everything. This idea is used to create forms of government such as communism and democracy.
Capitalism is the idea of free enterprise. This can be adapted to create forms of government such as monarchy and democracy.

The general idea of a socialist economy system is where there are jobs for everyone (the employers are the government) and you get paid nothing and work for the same amount of time as everyone else. This means that it is fair. The money/materials/foods/etc. Produced by these jobs are shared equally with everyone. This means that everyone has everything the same.

Capitalism is pretty much just a 'do what you want as long as you tell us' system. You can start a shop, work for whoever will employ you, etc. As long as you pay taxes to the government.

Extreme forms of both of these ideas never seem to work as:
(Socialism) The sharing is always rigged because it is human nature to be greedy and if you had the world in your command you would always take more for yourself than anyone else.
(Capitalism) There becomes a definite difference between social statuses and it ends up being about 5% rich people and 95% slaves who work for $3 an hour.

A mixture of these two (democracy) seems to work the best in our current world status.

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