The words capitalism and socialism have a general and non-precise meaning. Both combine characteristics of an economy with ideology.For some people they mean good and bad, and for others bad and good.
The objective of this dissertation is to inform about the concept of capitalism and socialism, the interrelation of them withsocial aspects, the origins of both and the evolution over the time.
Under capitalism the decision making is realized by individuals, primarily in their role as consumers, production factor owners andmanagers; and the most of economic resources are private. Under socialism, the decision making is realized by individuals in their role of voters, politicians and managers; but the government exercisescontrol over resources. (Individual roles)
Both definitions focus on economics criterion but are inevitably interrelated with political and social aspects. Freedom (economic and political) anddemocracy could be developed or delayed in any of the two systems. Capitalism advocates often ensure that freedom only is possible under capitalism but not in socialism. (Capitalism socialism yfreedom)
The two systems are very different in origin terms. Capitalism is a system developed historically and then, as economists tried to explain the workings of it, became an intellectual ortheoretical structure. By contrast, socialism was first developed intellectually as a theoretical framework alternative to the existing systems and then tested it in a real system. (Origins)
Both systems haveevolved in a continuous mode, in form and theory, especially in their real forms. Part of this evolution has occurred because there has been progress in the theoretical understanding of both...