Capitalism vs Socialism

Capitalism is an economic system in which trade, industry, and the means of production are largely or entirely privately owned and operated for profit Central characteristics of capitalism include capital accumulation, competitive markets and wage labour. In a capitalist economy, the parties to a transaction typically determine the prices at which assets, goods, and services are exchanged.
The degree of competition, role of intervention and regulation, and scope of state ownership varies across different models of capitalism.
Capitalism was carried across the world by broader processes of globalization such as imperialism and, by the end of the nineteenth century, became the dominant global economic system, in turn intensifying processes of economic and other globalization.[8] Later, in the 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy being its dominant form in the industrialized Western world.Capitalism was carried across the world by broader processes of globalization such as imperialism and, by the end of the nineteenth century, became the dominant global economic system, in turn intensifying processes of economic and other globalization. Later, in the 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy being its dominant form in the industrialized Western world.

Socialism is a social and economic system characterised by social ownership of the means of production and co-operative management of the economy, as well as a political theory and movement that aims at the establishment of such a system. "Social ownership" may refer to cooperative enterprises, common ownership, state ownership, citizen ownership of equity, or any combination of these. There are many varieties of socialism and there is no single definition encapsulating all of them. They differ in the type of social ownership they advocate, the degree to which they rely on markets or planning, how management is to be organised within productive institutions, and the role of the state in constructing socialism.
A socialist economic system is based on the organisational precept of production for use, meaning the production of goods and services to directly satisfy economic demand and human needs where objects are valued based on their use-value or utility, as opposed to being structured upon the accumulation of capital and production for profit. In the traditional conception of a socialist economy, coordination, accounting and valuation would be performed in kind (using physical quantities), by a common physical magnitude, or by a direct measure of labour-time in place of financial calculation.[9][10] On distribution of output there have been two proposals, one which is based on the principle of to each according to his contribution and another on the principle of from each according to his ability, to each according to his need. The advisability, feasibility and exact methods of resource allocation and valuation are the subject of the socialist calculation debate.
The socialist political movement includes a diverse array of political philosophies. Core dichotomies within the socialist movement include the distinction between reformism and revolutionary socialism and between state socialism and libertarian socialism. State socialism calls for the nationalisation of the means of production as a strategy for implementing socialism, while libertarian socialists generally place their hopes in decentralized means of direct democracy such as libertarian municipalism, citizens' assemblies, trade unions, and workers' councils coming from a general anti-authoritarian stance. Democratic socialism highlights the central role of democratic processes and political systems and is usually contrasted with non-democratic political movements that advocate socialism. Some socialists have adopted the causes of other social movements, such as environmentalism, feminism and liberalism.
Modern socialism originated from an 18th-century intellectual and working class political movement that criticised the effects of industrialisation and private property on society. The revival of republicanism in the American Revolution of 1776 and the egalitarian values introduced by the French Revolution of 1789 gave rise to socialism as a distinct political movement. In the early 19th century, "socialism" referred to any concern for the social problems of capitalism irrespective of the solutions to those problems. However, by the late 19th century, "socialism" had come to signify opposition to capitalism and advocacy for an alternative post-capitalist system based on some form of social ownership. During this time, German philosopher Karl Marx and his collaborator Friedrich Engels published works criticizing the utopian aspects of contemporary socialist trends and applied a materialist understanding of socialism as a phase of development which will come about through social revolution instigated by escalating and conflicting class relationships within capitalism. Alongside this there appeared other tendencies such as anarchism, revolutionary syndicalism, social-democracy, Marxism–Leninism and democratic socialism as well as the confluence of socialism with anti-imperialist and anti-racist struggles around the world. The socialist movement came to be the most influential worldwide movement and political-economic worldview of the 20th century. Today, socialist parties and ideas remain a political force with varying degrees of power and influence in all continents leading national governments in many countries.
(Wikipedia)