What are the differences of mixed economy and socialism?

Answer 1

Answer 1

Capitalism is an economic theory that states that private ownership of the means of production for generating profits for shareholders and owners is a good thing. Socialism feels the opposite. Socialism believes that profits should benefit all, especially those less fortunate or the disabled.

Answer 2

There are many differences between capitalism and socialism. Some of the most important are

-ownership of the means of production. Under capitalism, they are privately owned, under socialism, they are owned by society as a whole (this maybe direct community ownership or state ownership, providing that state is a socialist state).

-control of wealth produced. Under capitalism, the wealth created is controlled by the capitalists, under socialism, it is controlled socially either by direct community democracy or by the state which would be a state ruling on behalf of the masses of people.

-driving force of the system. Capitalism must accumulate more and more capital for the sake of further accumulation, socialism is concerned with meeting the basic needs of people.

Answer 3

Capitalism is based on private ownership of capital goods, meaning that returns on capital assets go to a class of private owners commonly called "capitalists" or "rentiers". Another key aspect of capitalism is the utilization of markets for allocating capital goods.

In contrast, socialism is based on social ownership of capital goods, meaning the returns on capital assets go to society as a whole (the public) to finance public goods, infrastructure, reinvestment or a citizen's dividend. Another key aspect of socialism is the reliance on economic planning for allocating capital goods within the economy.

Another type of socialism can be distinguished from the above systems, called "market socialism". In a market socialist system, capital goods are owned by cooperatives, meaning the returns on capital assets go to all the worker-members in the cooperative. This system is called "market socialism" because these cooperatives compete with each other in a market economy.

Answer 4

Capitalism and Socialism are two vastly differing Political and Socio-Economic ideologies, Capitalism on the Right of the Political Spectrum and Socialism on the Left.

In its purest form, Capitalism advocates a 'FreeMarket' economy by which Business occurs with minimal Governmental interference, (e.g. minimal tax on Business transactions), arguing that a smaller state presence in fiscal affairs equals a stronger economy as Business is not hampered by these interferences of the State. To this end, Capitalists advocate an approach of Privatisation in Society, by which certain interests are taken over and managed by private organisations, as opposed to the State. In its purest form, Capitalism believes in a hierarchical social structure, by which the wealthiest are at the top and the poorest at the bottom, arguing that such a structure is necessary for a successful society. Capitalism is the belief in a small state, where the market is allowed to function with minimal State intervention and the social hierarchy is maintained. Capitalists take the view that Human Nature is fundamentally corrupt, that is, that Humans will pursue their own ends over the needs of others, and so hold the position that such nature must be accepted and Society constructed around it.

Socialism contrasts very markedly with Capitalism. Socialists believe in the principles of SocialJustice and egalitarianism, by which peoples' Socio-Economic backgrounds - their money situations - are leveled to create a totally equal Society. They pursue this end through substantial State intervention in the Economy, (taxing Business and the wealthiest of Society considerably) and re-distributing the money levied to Society as a whole. This re-distribution mainly occurs in the construction and improvement of Public Services, such as (State) Schools/Hospitals/Emergency Services, and in Benefitpayments for the most vulnerable of Society - e.g. the Disabled, (who cannot work), single parents on low incomes, the unwealthy elderly (Pensions, Travel discounts) and the unwealthy Young (Higher Education Fees, Travel discounts). Instead of a 'Free Market' economy, Socialists often advocate a 'Plannedeconomy', by which the State has full reins over the workings of the economy, and advocate the Nationalisation of much business to this end. Socialism is the belief in a large State, with substantial intervention in the Economy in order to ensure Social Justice within Society. Socialists take the view that Human Nature is only corrupted to selfish ways by immersion in the greed and exploitation of Capitalism, being fundamentally co-operative and compassionate and only polluted and distorted at the hands of a Capitalist environment.

In Modern Times, however, with the exception of a handful of nations, the politics of Humanity has seen something of a fusion between Capitalism in its purest form and far-left Socialism. Nowadays, most governments operate in or around a centrist political stance, eschewing both the fully-fledged 'Free Market' economy of pure Capitalism and the large-State interventionism of Socialism, - something called the 'MixedEconomy' has been spawned, by which elements of private Business, in the interests of a thriving economy, are combined with elements of State intervention, in the interests of Social Justice in Society. This approach is often called 'The ThirdWay'.

Answer 5

1) Socialism is based on Social ownership of the means of production; Capitalism is based on Private ownership of the means of production.

2) Management in socialism is based on collective-decision making and self-management; Management in capitalist firms is based on hierarchical decision-making.

3) Socialism is based on "Production for use"; capitalism is based on "Production for profit". This means that the surplus product generated is used to benefit everyone in socialism, whereas in capitalism it becomes the profit for a few private owners.

4) Socialism is generally based on economic planning; while capitalism is based on a market economy. This is not always true; there are many forms of market socialism, and most of the existing capitalist economies are actually "mixed economies".

Answer 2

Socialism is an economic system where production, heavy machinery and distribution is operated by publicly-owned enterprises or by cooperative enterprises. There are no private landlords, shareholders or owners of these assets in a socialist economy.

A mixed economy is a capitalist economic system where some of the means of production, usually a few public services, are operated by the public or government, but most things are run by private businesses.

Answer 3

a mixed economy is a collaboration of socialist and market economies. for the most part the people decide what is produced and how to produce it. but the government oversees certain aspects of the products and sometimes only allows certain companies to make a product and only allows certain people to buy a product.

a communist or command economy is completely government owned and operated. all key business are run by the govt only extremely small businesses are privately owned. the people have to say in what is produced

Answer 4

If I'm using the same terminology as I think the questions is asking when you say planned economy you mean centrally planned like Communism. mixed economy would be what we have in the USA and Capitalism is what they have in Hong Kong.

The values of communism is that theoretically everyone should be better off. The operating principles is that all major decisions of all markets are decided for by the government. Business are compensated for loss by the government. The aim is theoretically to eliminate poverty since everyone will have a fair opportunity to get the necessities of life. The role of government is setting prices and supply of every good. The old USSR was an example. There are many countries that are currently communist. Frankly most of them are in the poorest countries in the world. The problem with Communism is that it just doesn't work. Producers have no incentive to be efficient and labor has no incentive to improve itself. The government is not able to react to change fast enough to keep pace with the rest of the world either. There are no benefits of communism as far as i can tell.

Most economies are a mix of pure capitalism with government controls. Many people think that the USA is pure capitalism. That is not true. We have many things that a capitalist society does not have. FDA being the first that popped into my mind. The patent system being another. The values of a mixed economy is that it has many of the benefits of capitalism with some of the benefits of a planned economy. The operating principles is that the government finds areas in which it feels that the capitalistic desires of the country will not satisfy certain things it deems essential and beneficial. The role of the government is to restrict certain business as well places taxes, tariffs, and price ceilings and floors to regulate trade. Canada is a good example of a mixed economy. The problems is the decisions that government makes are not always in the best interest of the community. and the strengths is that the economy can react to change relatively well.

I'm not sure if true capitalism TRULY exists but I will use Hong Kong as the example. The values of capitalism is to give its people the right to decide however they want they economy to evolve. All power is given to the consumers (as long as they didn't give too much power to any one producer) except for some markets that lend them selves to monopolization. the operating principle is that whatever gives benefits to the society will remain. whatever is a detriment to society will be eliminated by consumer choice. The role of government should be to protect personal property rights only. possible problems is that there is no checks and balances and in the short run Pseudo monopolies can prevail. There is no barrier to protect consumers against companies that gain too much power, except market competition. The strength is that the economy can be very agile and react quickly to consumer demands. Often capitalism creates a higher standard of living when applied properly to a relatively educated populous.