Start with the basic contrast
Capitalism or Socialism?
Capitalism and socialism are economic systems. But first, what is the economy? It is the production, distribution, and consumption of goods and services.
So who decides?
Under capitalism, you do. Under socialism, the government does. Everything below follows from that one difference.
CAPITALISM
Private control
The capitalist economy is organized by private control of the means of production and distribution.
SOCIALISM
Government control
The socialist economy is organized by government control of the means of production and distribution.
Seeing it in actionThe same goal, two very different systems: income in retirement.
CAPITALISM IN ACTION
401(k)
A method of providing income during your retirement.
- A voluntary choice
- It is your money
- You choose how much to save from your paycheck
- You select your investments
- The account is yours
You own it.
SOCIALISM IN ACTION
Social Security
A method of providing income during your retirement.
- A mandatory program
- The government chooses how much of your money to take from your paycheck
- The government determines what benefit you might receive
You do not own anything.
Empirical case studies
When the only major difference is the economic system, the results speak for themselves.
