The 6 differences between capitalism and socialism

These two ideologies are practically opposite in their approaches.

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, causing military crises, creating political and social initiatives and changing the way we think.

It is necessary to bear in mind that to day of today there are no places where pure capitalism and pure socialism exist.Rather, because of their opposition, what happens in one always causes something to change in the other.

Having said this, let us now see how they differ.

1. The role given to the State

In capitalism, the State is fundamentally seen as an entity that is in charge of preventing its inhabitants from violating the fundamental rights of their fellow citizens, either by physically attacking them or by stealing and destroying elements of their property. In addition, the State may place 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. Thus, well-off minorities can be shielded from attempts to collectivize resources.

Thus, one of the main objectives of socialism is to to make the State disappear completely. However, 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 lack thereof

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, a great deal of attention is paid to the defense of private property. 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 good).

3. Emphasis on freedom or emphasis on equality

In capitalism what matters is that everyone has the ability to choose from the greatest possible number of options, 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.

Another major difference between socialism and capitalism is that in the latter, people are educated to compete with each other, given that minimum quality of life guarantees are not systematically guaranteed for most of the population. systematically for the majority of the population.

In socialism not everything revolves around competition, which does not mean that people do not work (if they are not able to do so, there are sanctions). This is so because in this system basic needs are taken care of.

5. Production system

In capitalism special attention is paid to the need to constantly produce and to open new types of markets by creating products or services. This is so because by the logic of its functioning centered on competitiveness there are always entities or individuals interested in displacing the competition and selling to their customers, or to open up 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 only when there is a clear need.

6. Focusing or not on individual interest

In capitalism, the will of the individual prevails, which means that the idea of a planned economy is rejected. This is so because it is understood that there must be freedom of the marketunderstood as a context in which there are as few regulations as possible 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 have a reason to exist: if there is someone who buys it, it is useful.

In socialism, on the other hand, emphasis is placed on collective interests, which is why it tries to address phenomena that affect everyone, such as the crises of environmental preservation or sexism. The market still exists, but it is seen as a medium through which objectively useful elements circulate for the population.