What distinguishes capitalism from socialism?
What distinguishes capitalism from socialism? Under each system, how are economic decisions made? Is one better than the other in terms of making ‘good’ decisions about the use of scarce resources? Explain.
- Anonymous8 years agoFavorite Answer
Capitalism mean free markets and private property, with everybody making their own decisions.
Socialism means government control, with government making all the decisions.
Freedom is better than government control. But that is my opinion.
- simplicitusLv 78 years ago
Pure capitalism doesn't work.
Pure socialism does, but not very well. That is why every developed country, including the U.S. from its founding, and every country that is actually developing, including China since 1978, is a mixed economy.
There are many different models for a mixed economy:
But the model that delivers the best standard of living seems to be the Scandinavian model:Source(s): http://crookedtimber.org/2011/02/02/g-a-cohen-agai... http://world.std.com/~mhuben/critcfm.html http://krugman.blogs.nytimes.com/2012/01/24/chines... http://yglesias.thinkprogress.org/2011/04/americas... http://conversableeconomist.blogspot.de/2012/07/us... http://mckinseyonsociety.com/downloads/reports/Edu... Sweden subsidizes day care for those who need it: http://phsa.theabramgroup.com/UserFiles/File/child... It makes sense, but the U.S. doesn't. etc.