¶ … Sociology: Capitalism and Socialism
Socialism and capitalism are fundamental schools of thought in the study of economics, with opposing views regarding the government's role in economic operations and economic equity. Socialism is against inequality, and holds that the government has a duty to reduce, or eliminate the said inequality through initiatives that are beneficial to the poor. Such initiatives could include subsidized or free social services such as healthcare and education, progressive taxation, etc. Capitalism, on the other hand, believes that the government, compared to the private sector, is an inefficient resource allocator. Due to this, its role should be limited; and the free forces of demand and supply left to allocate economic resources.
Similarity between Socialism and Capitalism
The most fundamental aspect of similarity between the two schools of thought is that; both recognize the concept of scarcity of economic resources (Lawson, Jones & Moores, 2000). Capitalism and socialism only offer opposing views regarding how these scarce resources can best be allocated among the insatiable human wants.
Differences between Socialism and Capitalism
Socialism and capitalism differ in the areas of economic equality, property ownership, and pricing systems, as summarized in the tabular representation below (Pettinger, 2013).
School of Thought
Socialism
Capitalism
Economic...
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