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 driving forces in history, causing military crises, creating political and social initiatives and changing our way of thinking.
In this article we will see which are the main differences between socialism and capitalism and which are the ideas on which they are based.
Differences between capitalism and socialism
We must take into account that nowadays there are no places where there is pure capitalism and pure socialism , but, because of their opposition, what happens in one always makes something change in the other.
Having said that, let’s see how they stand out.
1. The role given to the State
In capitalism, the state is seen primarily as an entity that is responsible for preventing the inhabitants of the state from violating the fundamental rights of their fellow citizens, either by physically attacking them or by 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 machine by which one social class imposes its interests on the other. Thus, affluent minorities can protect themselves from attempts to collectivize resources.
Thus, one of the main objectives of socialism is to make the state disappear completely . However, communists and anarchists differ on this point: the former believe that this process must take place over a period of 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 certain number of people, and not to everyone. That is why in this economic and productive system much attention is paid to the defence 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 goods).
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 taken and products to be acquired is equivalent to freedom.
In socialism, on the other hand, one flees from consumerism and defends more the principle of equality , since without this there are people who are forced to choose between a reduced range and unattractive options, due to the existence of a ruling class (which, in practice, means that there is no freedom).
4. One is motivated to compete, the other is not
Another of the great differences between socialism and capitalism is that the latter educates people to compete with each other, given that there are no minimum guarantees of guaranteed quality of life systematically for most of the population.
In socialism, not everything revolves around competition, which does not mean that you do not work (if you do not work when you are 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 to open up new types of markets by creating products or services. This is so because, due to the logic of its functioning centred on competitiveness, there are always entities or persons interested in displacing the competition and selling to their clients, or opening a new market niche with a product or service that has nothing similar to compete with.
In socialism, however, 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 will of individuals prevails, which means that the idea of a planned economy is rejected. This is because it is understood that it is necessary that there is freedom of 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 to be: if there is someone to buy it, it is useful.
In socialism, on the other hand, emphasis is placed on collective interests, so it is a matter of addressing phenomena that affect everyone, such as the crises of environmental preservation or sexism. The market still exists, but it is seen as a means by which objectively useful elements circulate for the population.