Question

What is a difference between capitalism and socialism?

Capitalism supports very limited government involvement, and socialism supports government-owned means of economic production.
Capitalism favors the government establishing regulatory rules, and socialism favors government’s only role as preventing monopolies.
Capitalism supports government dictating economic policy, and socialism supports the “invisible hand of the market” dictating economic policy.
Capitalism favors the government setting wage amounts, and socialism favors wages changing according to supply and demand.

Answer 1

Capitalism and socialism are formal economies. The major differences between capitalism and socialism revolve around the role of the government and equality of economics. Capitalism affords economic freedom, consumer choice, and economic growth.