The primary difference between capitalism and socialism is that capitalism promotes innovation and personal pursuits, while socialism promotes societal fairness and equality. A capitalist economy accepts that income polarity is a reality in order to motivate high performers to develop new ideas and products for personal gain. A socialist economy tries to balance wealth through policies that ensure each person has an adequate amount of income, food and supplies.Know More
The holder of economic control also varies. In a capitalist system, private companies and individuals drive the economy by developing successful businesses, making money and paying workers. In socialism, the government controls the economy by allocating resources and coordinating the redistribution of wealth.
One advantage of a socialist economic is that unemployment is typically very low. The government assigns jobs to ensure people aren't out of work. In capitalism some level of unemployment is inherent based on the requirement of employers to have educated, experienced and qualified workers for each position.
One of the most important distinctions between the two economic systems is control of pricing. Capitalism is largely a pure economy, which means it has few government regulations, and companies, with influence from consumers, control much of the market's pricing. In socialism governments control pricing through price ceilings and price floors. Government pricing tends to cause shortages or excesses in supplies.Learn more in Economics
Managerial capitalism posits that dominant CEOs would no longer run businesses but instead hired employees would run the businesses as a new class of professional CEOs. Adolf A. Berle and Gardiner C. Means first make this proposal in their 1932 treatise "The Modern Corporation and Private Property" in which they endorse the idea that owners turn companies over to professional managers.Full Answer >
Some of the pros of capitalism include increased market efficiency and increased economic growth, while some of the cons include wealth inequality and lack of public services. Capitalism is an economic system in which the government exerts little influence, and private companies control the production of goods and services.Full Answer >
Feudalism is refers to an overall structure of society such as that which existed in Western Europe during the Middle Ages, while manorialism refers to the type of economic system that controlled the means of production during that era. Manorialism is the economic component of the larger societal system generally called feudalism. The terms feudalism and manorialism have been exchanged for each other at times, such as in the case of Adam Smith, who in his influential work, "The Wealth of Nations," uses the term feudalism in more of an economic sense than as a reference to the societal and political structure that was prevalent during the Middle Ages.Full Answer >
The difference between modern neoliberalism and liberalism is that neoliberalism advocates an idealized "hands-off" free-market system while modern economic liberalism calls for government regulation to control the excesses of free-market capitalism. Modern liberalism, or the "Keynesian school" of economics, named for its main proponent John Maynard Keynes and differing from classical liberalism, developed in the aftermath of the 1930s failure of the free-market system known as the Great Depression. Neoliberalism, sometimes referred to as the "Chicago school" of economics and named after the University of Chicago, rose to prominence in response to the breakdown of the international money system and the fiscal contradictions viewed as inherent in the welfare system.Full Answer >