Capitalism Socialism

Means of Means of Production are privately owned and From each according to his ability to each according
Production and operated  Free Market to his need  Collective ownership of means of
Private production by Public Enterprises and Cooperatives
Property
Personal property, such as houses, clothing, etc.
owned by the individual, while Public property
includes factories, and means of production owned
by the State but with worker control

Individual or Emphasis on Individual Profit and Choice  Rational Collective decision making; basic needs of all
Society Choice Theory individuals will be addressed

Restriction on No restriction on amount of capital Progressive taxation

Capital
Government Laissez-faire(Let it be) Yes
Intervention
Proponents Robert Nozick, Adam Smith Karl Marx, Friedrich Engels, Antonio Gramsci

Political Can coexist with a variety of political systems, Can coexist with different political systems including
System including dictatorship, democratic republic, anarchism, Welfare Democracy, Dictatorship, and Democratic
and direct democracy. Most capitalists advocate a Centralism (advocated by Marxists – Leninists)
democratic republic.

Economic Policies are driven by market needs and choice of Central planning to determine investment and
Planning and consumers  False needs through advertising production decisions  Not by consumer demand
Consumer
Choice
Social Capitalist Class and Working class based on Measures like Progressive Taxation to avoid
Structure Accumulation of Wealth accumulation

Birth Status through Inheritance

Equality Unconcerned about economic inequality  Natural Redistribution of sources from rich to ensure
and Desirable everyone has equal access to opportunities  Public
Education, Health
Rich should not be heavily taxed  Theft 
Disincentive
Efficiency and Profit incentive  Innovation  Efficient allocation of State ownership  Workers and managers lack
Productivity resources  Creative destruction incentive
Views about
Human Nature
Price Control Determined by Supply & Demand (Market forces) Set by the government

Firms with monopoly power may be able to exploit

their position

Unemployment State doesn’t directly provide jobs  Recession, State funded public projects
unemployment can rise to very high level
Personal Often characterized by greater political freedom in the Strict regulations on businesses
Freedom form of civil rights
Social needs are prioritized over individual’s
Rights of businesses and consumers

Notes by Muhammad Daud Saleemi (2nd Position in Pakistan, CSS 2019) 03066875141
Notes by Muhammad Daud Saleemi (2nd Position in Pakistan, CSS 2019) 03066875141