Capitalism and socialism are economic theories. Capitalists want minimal government interference and like to let the free market establish prices and wages. Capitalists want equal opportunity for everyone to succeed. Socialists believe in economic equality where the government has a big role in making sure economic outcomes are the same for everyone. President Obama likes to call this economic justice.
Capitals believe in low taxes, minimal laws to regulate business and expect people who work harder to be more successful. Work harder might mean working longer hours or taking risks with your capital to make more money. Socialists believe in high taxes and lean toward government control of business. Socialists think everyone should end up with the same amount of money, regardless of some people’s unwillingness to work.
The truth is that most economic systems are a hybrid of capitalistic and socialistic ideas. What we have in the United States is a system that becomes more capitalistic under Republican administrations and more socialist under Democratic administrations.
Which system is better is always under debate in this country. The reason there is a debate is because academics and news media are primarily Democrats that have big voices. If we had honesty in the academic and media arena, there would be no debate -- capitalism would win.
Right now, under the Obama administration we are maximizing government control and high taxes. Anyone that pays attention knows that 25% of working age people cannot find a job and per capita income drops every year. Instead of everyone being equal, the rich are getting extremely rich and the poor are getting extremely poor.
Hey, maybe this is the point. Now that Obama has killed all the jobs, he is forced to give more things to the poor people. This is the same poor people that his policies made poor. Is that how people become good Democrats? They need a Democrat in power to give them things that Democrat policies kept them from getting. This is not for me, folks.
Under capitalism the rich get richer, but so do the poor. They have an opportunity to move into middle class or even become wealthy. Under socialism the rich get richer and the poor get what government wants them to have. The only people getting rich right now are politicians that are keeping the rest of us suppressed.