WHAT IS CAPITALISM AND SOCIALISM? GIVE DIFFERENCES BETWEEN THESE?

Question

WHAT IS CAPITALISM AND SOCIALISM? GIVE DIFFERENCES BETWEEN THESE?

Answer 1

SOCIALISM:You have 2 cows, and you give one to your neighbour.

TRADITIONAL CAPITALISM:You have two cows. You sell one and buy a bull.Your herd multiplies, and the economy grows. You sell them and retire on the income.

Answer 2

Socialism is a system where there is government or collective ownership and administration of production and distribution of goods.

Capitalism is characterized by private or corporate ownership of capital goods and the distribution of goods are determined mainly by competition in a free market.

In a socialist system, there are no extreme differences between the poorest and the wealthiest citizens. There are wealthy people but they generally aren't nearly as wealthy as those in a capitalist system. However, drawbacks include higher taxes to help pay for social programs, a higher cost of living, complacency, lack of ambition, and stagnation.

In a capitalist system, there is a great deal of disparity between the wealthy and poor. A capitalist system requires a huge permanent underclass in order to support a wealthy few. In many countries there is very little social mobility. If you are born poor, it's likely you will also die that way.