Capitalism Vs Socialism | What is the difference between Capitalism and Socialism?

[Music] have you ever wondered what the difference is between capitalism and socialism in this video my goal is to give you an overview of the two economic systems capitalism and socialism are two main economic systems used around the world the main difference between capitalism and socialism is the extent to which the government controls the economy let's take a minute to compare their goals capitalism allows for private enterprises to have more control over the economy and that society is better off when the distribution of wealth is determined by a freely operating market and not the government socialist governments however aim to promote economic equality by regulating businesses and providing programs that help the poor examples of this include free education and health care next let's compare their main ideas in capitalism private individuals own and control businesses property and their investments it drives off the system of supply and demand supply pertains to how much product can be made and demand refers to how much of that product consumers are willing to purchase at a certain price this encourages businesses to make quality products as efficiently and inexpensively as possible socialism is an economic system under which the means of production are owned equally by everyone in society in some socialist economies the government owns and controls major businesses and industries and others individual ownership of business and property is allowed but with high taxes to help pay for social programs that serve the common good next let's compare income and ownership capitalist systems make little or no effort to prevent income inequality this financial inequality is intended to encourage competition and innovation which should ultimately drive economic growth individuals contribute economy based on the needs of the market and are rewarded by the economy based on their personal wealth under capitalism the government does not employ the general workforce and this can cause unemployment to increase during economic downturns in contrast to capitalism the main concern of socialism is the elimination of rich and poor socioeconomic classes by distributing wealth equally to accomplish this the socialist government controls the labor market to the extent of being the primary employer in most cases this allows the government to ensure full employment during economic downturns today most developed countries combined elements of socialism and capitalism in Norway Sweden and Denmark generally considered socialists the government provides health care education and pensions however private ownership of property creates a degree of income inequality which is a characteristic of capitalism countries such as Great Britain France and Ireland have strong socialist parties and their governments provide many social support programs however most businesses are privately owned making them essentially capitalist the United States many label as a capitalist country but it isn't even ranked in the top ten most capitalist countries the preamble of the US Constitution sets one of the nation's goals to promote the general welfare to meet this goal the u.s. employs certain socialist like programs thank you for watching if you like this video please subscribe to illustrate to educate to support more videos being made

Channel: Illustrate to Educate

Views: 368,044

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Id: CrmimbzkSAg

Length: 3min 41sec (221 seconds)

Published: Fri Nov 29 2019