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The 6 differences between capitalism and socialism

The 6 differences between capitalism and socialism

March 29, 2024

In part, what has happened on a global scale during the last centuries has to do with the struggle between capitalism and socialism. The way in which these two economic, political and ideological systems are related to each other has been one of the main engines of history, since it has caused military crises, has created political and social initiatives and has modified our way of thinking.

In this article we will see what are the main differences between socialism and capitalism and what are the ideas on which they are based.

  • Related article: "The 4 types of ideology that exist, and the values ​​they defend"

Differences between capitalism and socialism

Keep in mind that today there are no places where there is pure capitalism and pure socialism , but, because of their opposition, what happens in one always causes something to change in the other.


Having said that, let's see how they differ.

1. The role granted to the State

In capitalism, the state is seen primarily as an entity that is responsible for preventing the inhabitants of the same violating the fundamental rights of their fellow citizens, either physically attacking or 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 machinery by which one social class imposes its interests on the other. For this reason, well-off minorities can protect themselves from attempts to collectivize resources.

So, one of the main goals of socialism is make the State disappear completely . Of course, in this aspect communists and anarchists differ: the former believe that this process should occur over 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 series of concrete people, and not to the whole world. That's why in this economic and productive system 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 be, and that the collectivization of resources is desirable (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 among 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 carried out and products to acquire equals freedom.


In socialism, on the other hand, it escapes consumerism and the principle of equality is more defended , since without this there are people who are forced to choose between a narrow range and unattractive options, because there is a ruling class (which, in practice, means there is no freedom).

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4. One is motivated to compete, the other does not

Another of the great differences between socialism and capitalism is that in the latter, people are educated to compete with each other, given that there are no guaranteed minimum guarantees of 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 do it when you are able, 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 open new types of markets by creating products or services. This is because, because of the logic of its operation focused on competitiveness, there are always entities or people interested in displacing the competition and selling to their clients, or to open a new market niche with a product or service that has nothing similar to what to compete.

In socialism, however, there is no need to constantly produce new goods and services, but only when there is a clear need.

6. Targeting or not in the individual interest

In capitalism the wills of individuals prevail, which means that the idea of ​​a planned economy is rejected. This is because it is understood that there must be freedom of the market , understood as a context in which there are the minimum possible regulations 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 marketing is viable has reason to be: if there is someone who buys it, it is useful.

In socialism, however, emphasis is placed on collective interests, so it is about addressing phenomena that affect the whole world, such as the crisis of environmental preservation or sexism. The market still exists, but this is seen as a means by which objectively useful elements circulate for the population.

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