During one of the debates recently, I learnt that, commonly people are confused with the terms Capitalism, Socialism, Communism and Democracy. Thus, I thought of putting things here explaining (trying to explain) the difference between these in layman's term.
Capitalism, Socialism, Communism - these are commonly known as economic models and entirely independent of political models like Democracy, Anarchy...
Capitalism - An economic system based on the "Survival of the fittest".
Example: I own the cow. You buy the milk. The government gets its taxes. Or, more generally, everyone owns a private property but the government can tax us.
Socialism - An economic system based on the "You get your share no matter what your contribution is".
Example: The government owns the cow. You buy the milk. You pay the government. Or, more generally, government owns the resource production (farms, factories,...) but the people can own private property.
Want to read my view on socialism, click here
Communism - An economic system based on the "you put in your fair share you get your fair share".
Example: The government owns the cow. The government owns the milk. You are allowed to drink the milk, but only as much as you really need. The government owns everything, but everyone shares the resources.
Capitalism, Socialism, Communism - these are commonly known as economic models and entirely independent of political models like Democracy, Anarchy...
Capitalism - An economic system based on the "Survival of the fittest".
Example: I own the cow. You buy the milk. The government gets its taxes. Or, more generally, everyone owns a private property but the government can tax us.
Socialism - An economic system based on the "You get your share no matter what your contribution is".
Example: The government owns the cow. You buy the milk. You pay the government. Or, more generally, government owns the resource production (farms, factories,...) but the people can own private property.
Want to read my view on socialism, click here
Communism - An economic system based on the "you put in your fair share you get your fair share".
Example: The government owns the cow. The government owns the milk. You are allowed to drink the milk, but only as much as you really need. The government owns everything, but everyone shares the resources.
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