Capitalism vs Socialism

Capitalism is the economic system in which production and distribution are owned and operated by individuals. (As oppossed to Socialism that advocates ownership by the community.)
In keeping with the idea of political thought, here are some of the motivations for each.

Motivation
Capitlism: A person acts in thier own self intrest of making profits, catering to the needs of the consumer, often building a cheaper and higher quality product.

Socialism: A person works for the benifit of all, where wealth is shared throughout the community

Profit
In captialism some people are paid huge sums, because other people believe they have unique talents which are worth paying for. If they fail to perform, then they will stop being rewarded so highly. This is all part of a dynamic capitalist system which values individuality and rewards ability and risk-taking.

Scocialists claim that captialism rewards people in preverse ways. (Is it fair that the firefighter or the soldier who risks his life makes far less than the movie star, baseball player).

Goverment Involvment
Capitalists believe the guiding hand of government is too strong in a socialist system; it means that change is slow – which means that innovation is missed. This isn’t just pro-business, it has real effects on the lives of citizens - people are poorer because of it. In a capitalist system, economies are diverse enough that when problems happen in one sector, others are often insulated by their differences.

In the socialist view the economic priciples of the capitalist systems are essentially unplanned, so they often crash, producing depressions that damage the lives of millions. Socialist economies are planned, which means that problems can be foreseen and prevented. Ultimately, socialism guides with the aim of human happiness in mind, rather than the glorification or gratification of a particular individual or class.



http://www.youtube.com/watch?v=76frHHpoNFs