Conflict Between Capitalism & Socialism

The United States is a capitalistic society.

The conflict between capitalism and socialism accounts for much of the world's international tension. Each system fears that the other will grow to overpower it. Neither economic system is foolproof.

Capitalism

Capitalism is an economic system based on the idea of individual ownership of production and distribution. A capitalistic economy is maintained by private individuals and corporations. Though economic policy may be regulated by the government in this form of economics, the success of capitalistic economy depends on the choices of individuals as they strive for profit within the system.

Socialism

Socialism is an economic system in which the production and distribution of wealth and goods are in the hands of the community as a whole (or the government that dictates that community). In theory, each person works for equal pay regardless of his job. Profits go to the state and are distributed to the people. The idea stems from collectivism.

Conflict

Conflict arises within both systems when individuals gain power, thus perverting the basic economic ideas to their own wants. Conflicts between capitalism and socialism arise in the misconceptions about each other. Capitalistic societies are perceived as greedy, while socialistic societies are perceived as lacking individual freedom. Each feels the other economic form poses a threat to its own system.

References

• Dictionary: Socialism
• Dictionary: Capitalism