Socialism and capitalism: what's the difference?

Table of contents:

Socialism and capitalism: what's the difference?
Socialism and capitalism: what's the difference?
Anonim

Capitalism, socialism, communism are forms of the economic structure of society. They can be called stages in the development of social relations. Many thinkers have studied them. Different authors have different views on capitalism and socialism, on other models that have come to replace them, and the consequences of their existence. Let's explore the basic concepts next.

socialism and capitalism
socialism and capitalism

The system of capitalism and socialism

Capitalism is called the economic model of production and distribution, which is based on private property, freedom of entrepreneurial activity, legal equality of economic entities. The key criterion for making decisions in such conditions is the desire to increase capital and maximize profits.

The transition from capitalism to socialism did not occur in all countries. The determining criterion for their consistent existence was the form of government. Meanwhile, signs of capitalism and socialism are characteristic to varying degrees of economic models in almost all countries. In some states, the dominance of capital continues today.

If we make a superficial comparison of capitalism and socialism, it can be noted thatthere is a close relationship between them. The first concept is an economic abstraction. It reflects the characteristic features of the economic model at a certain stage of development. However, the real economy of any country has never been based solely on private property relations, and entrepreneurship has never been absolutely free.

The transition from capitalism to socialism in a number of countries was very painful. It was accompanied by popular upheavals and revolutions. At the same time, entire classes of society were destroyed. Such, for example, was the transition from capitalism to socialism in Russia.

Distinctive features of models

Different countries developed and moved to certain stages at different times. It depended on many factors. In the West, for example, feudalism dominated for a long time. Capitalism and socialism became the next steps in the development of society. However, the latter survived in the eastern countries.

Despite the fact that there are many differences between capitalism and socialism, the former has a number of unusual features. Among them:

  • Restriction on ownership of property, including the size of land and real estate.
  • Antitrust rules.
  • Customs barriers.

Capitalism, socialism and democracy

Schumpeter - an American and Austrian economist - proposed such a concept as "creative destruction". For him, capitalism was associated with private property, the economy of enterprise, the market mechanism.

Schumpeter studied the economic dynamics of changes insociety. The emergence of capitalism, socialism and democracy, he explained the emergence of innovation. Due to their introduction into different capabilities, resources and other production factors, the subjects begin to create something new.

The author called "creative destruction" the core of capitalist development. Entrepreneurs, in his opinion, are the bearers of innovation. At the same time, lending helps business entities.

Schumpeter believed that capitalism made it possible to achieve previously unprecedented levels of prosperity and personal freedom. Meanwhile, he assessed the future of this model very pessimistically. The author believed that the further development of society would destroy capitalism. Liberalism and socialism will be the result of its penetration into all social spheres of life. That is, in fact, the success of the model will lead to its collapse. The author explained such consequences by the fact that the new systems will destroy the conditions under which capitalism can exist: either socialism (this happened in Russia, for example), or another new model will in any case replace it.

capitalism liberalism socialism
capitalism liberalism socialism

In his works, Schumpeter paid special attention to democracy. The author analyzed socialism and capitalism, formulated the probable further development of society. Within the framework of the research, the key issue was the problem of the relationship between the socialist model of organization and the democratic form of government.

Studying the development of the Soviet state, in which capitalism, socialism, communism successively spread, the changes were premature. Schumpeter considered the situation in the country to be socialism in a distorted form. To solve economic problems, the authorities used dictatorial methods. The author is closer to the English and Scandinavian social democratic system. Comparing the development of capitalism and socialism in different countries, these systems seemed to him the least evil.

Comparative characteristics

Let's consider the difference between capitalism and socialism. Different thinkers distinguish different features of both models. The main general characteristics of socialism can be considered:

  • Universal equality.
  • Restriction of private property relations.

Unlike capitalism, under socialism subjects could only have items in their personal ownership. At the same time, capitalist enterprises were replaced by corporate ones. Socialism is characterized by the formation of communes. Within these associations, all property is common.

The socialists opposed the capitalists mainly because the latter exploited people to achieve their goals. At the same time, there was a clear distinction between classes. With the development of private property relations, the division of layers became more and more distinct.

The differences between socialism and capitalism were especially pronounced in Russia. People dissatisfied with the conditions of life and work, advocated justice and equality, the eradication of oppression, which was widespread in the country. In other states, capitalism was perceived not so painfully. The fact is that other societies went through their transformation faster. The socialists considered destructionprivate property relations as one of the ways to achieve the ultimate goal - the formation of an organized society.

what is the difference between socialism and capitalism
what is the difference between socialism and capitalism

Mises Concept

The purpose of socialism, according to the author, is the transfer of production means from private ownership to the possession of the state. This is necessary to eliminate exploitation. In capitalist society, man was excluded from the results of his labor. The task of socialism is to bring the individual closer to the benefits, to reduce the differentiation of income. The result should be the harmonious and free development of the individual.

At the same time, elements of inequality may remain, but they should not interfere with the achievement of goals.

Directions

Today there are 2 key currents in socialism: Marxism and anarchism.

According to representatives of the second direction, within the framework of state socialism, the exploitation of the people, the removal of a person from benefits, and other problems will continue. Accordingly, anarchists believe that real socialism can only be established when the state is destroyed.

Marxists called socialism a model of the organization of society at the stage of transition from capitalism to communism. In other words, they did not consider this model ideal. Socialism was for Marxists a kind of preparatory stage for the creation of a society of social justice. Since socialism follows capitalism, it retains capitalist characteristics.

The main ideas of socialism

As suppliedprograms to achieve them were formed.

The result of labor, in particular, was supposed to be distributed according to the contribution of each individual producer. He was to be given a receipt, which reflected the amount of his work. According to it, the manufacturer could obtain commodities from the public stock.

The principle of equivalence was proclaimed dominant under socialism. In accordance with it, the same volumes of labor were exchanged. However, since different people have different abilities, they should receive a different proportion of commodities.

difference between socialism and capitalism
difference between socialism and capitalism

People can own nothing but personal commodities. Unlike capitalism, in socialism, private enterprise was a criminal offense.

Communist Manifesto

The Communist Party was formed after the elimination of capitalism. The communists based their program on socialist ideas. The Manifesto reflected the following signs of the new order:

  • Expropriation of land ownership, use of rent to cover government costs.
  • Setting a high progressive tax.
  • Cancellation of inheritance law.
  • Confiscation of property belonging to rebels and emigrants.
  • Centralization of credit resources in the hands of the state through the formation of a state bank with state capital and a monopoly of power.
  • Increase in the number of state-owned enterprises, tools of production, land improvement, clearingthem under arable land according to a single plan.
  • Establishing a state monopoly on transport.
  • Unification of industry and agriculture, gradual elimination of differences between town and countryside.
  • The same labor service for all.
  • Free public education for children, end child labor in factories.

Features of the emergence of socialism

Ideology has evolved over quite a long time. However, the term "socialism" itself appeared for the first time only in the 30s. 19th century. Its author is the French theorist Pierre Leroux. In 1934 he published an article "On Individualism and Socialism".

The first ideas about the formation of socialist ideology emerged in the 16th century. They expressed the spontaneous protest of the lower (exploited) strata during the initial stage of capital accumulation. Ideas about an ideal society, corresponding to human nature, in which there is no exploitation, and the lower class has all the benefits, began to be called utopian socialism. The founders of the concept are T. More and T. Campanella. They believed that public property would ensure the formation of conditions for a fair distribution of we alth, equality, social peace and the well-being of the population.

Schumpeter capitalism socialism and democracy
Schumpeter capitalism socialism and democracy

Development of theory during the 17th-19th centuries

Quite a lot of thinkers have tried to find a formula for an ideal world, since in a rich capitalist society there wasa huge number of poor people.

A. Saint-Simon, C. Fourier, R. Owen made a special contribution to the development of socialist concepts. They formed their ideas under the influence of events in France (the Great Revolution), as well as the active development of capital.

It is worth saying that the concepts of the theorists of socialist utopianism sometimes diverged significantly. However, they all believed that conditions had formed in society for immediate transformation on fair terms. The initiators of the reforms were to be those who held high positions in society. The we althy should help the poor, ensure a happy life for everyone. The socialist ideology was aimed at protecting the interests of the working class, proclaiming social progress.

Guidelines

The Socialists proclaimed the following ideas:

  • From each individual according to his ability, each ability according to his deeds.
  • Harmonious and comprehensive development of personality.
  • Breaking the difference between rural and urban.
  • Variety of spiritual and physical labor.
  • The free development of each individual as a condition for the development of the whole society.

Utopians were maximalists to a certain extent. They believed that society should be happy either all at once, or no one at all.

Ideology of the proletariat

Communists also aspired to achieve general welfare. Communism is considered the extreme manifestation of socialism. This ideology was more consistent in striving to reform society through the establishment of a collectiveownership of the means of production and, in some cases, commodities.

At the very beginning of the 19th century, Marxism was formed. It was considered as the theoretical basis of the proletarian movement. Marx and Engels formulated a socio-political, economic and philosophical theory that had an enormous impact on the development of society in the second half of the 19th and early 20th centuries. Communist ideology and Marxism have become synonymous.

capitalism and socialism comparison
capitalism and socialism comparison

Society, according to Marx, is not an open model of a happy system. Communism, Marxists believed, is a natural result of the development of civilization.

The followers of the concept believed that capitalist relations form the conditions for a social revolution, the elimination of private property, the transition to socialism. Marxists identified a key contradiction in the model: it arose between the social nature of labor, shaped by the market and industry, and private ownership of the means of production.

Capitalism, according to Marxists, has created its destroyer - the proletariat. The emancipation of the working people is the goal of the social revolution. At the same time, the proletariat, liberating itself, eliminates forms of exploitation in relation to all workers.

To socialism, according to Marxists, society can come only in the process of historical creativity of the working class. And it, in turn, must be embodied through a social revolution. As a result, achieving socialism has become the goal of millions of people.

Becomingcommunist formation

This process, according to Marx and Engels, involves several stages:

  • Transition period.
  • Establishment of socialism.
  • Communism.

The development of a new model is a long process. It should be based on humanistic principles, proclaiming a person as the highest value.

Communism allows, according to Marxists, to form a society of free and conscious workers. It should establish public self-government. At the same time, the state as an administrative mechanism must cease to exist. In a communist society, there should be no classes, and social equality should be embodied in the attitude "From each individual according to his ability and to each according to his needs."

Marx saw communism as the path to the unlimited flowering of man free from exploitation, the beginning of true history.

Democratic socialism

At the present stage of development of society, a huge number of different political and social movements have been formed. The ideology of social democracy, so popular at the present time, is rooted in the reformist trend in the 2nd International. His ideas are presented in the works of Bernstein, Vollmar, Jaurès, etc. The concepts of liberal reformism, including Keynesianism, also had a special influence on it.

capitalism and socialism differences
capitalism and socialism differences

A distinctive feature of the social democratic ideology is the desire for reformism. The concept substantiates the policy of regulation, redistribution of profitsin a market economy. One of the prominent theorists of the Second International, Bernstein categorically denied the inevitability of the destruction of capitalism and the advent of socialism in connection with this. He believed that socialism cannot be reduced to the replacement of private-property relations by public ones. The way to it is the search for new collective forms of production in the conditions of the peaceful formation of the capitalist economic model and political democracy. The slogan of the reformists was the statement "The goal is nothing, the movement is everything".

Modern concept

Its common features were described in the 50s. last century. The concept was based on the Declaration adopted at the international conference in Frankfurt am Main.

According to program documents, democratic socialism is a way different from both capitalism and real socialism. The first, as the adherents of the concept believed, allowed the creation of a huge number of productive forces, but at the same time elevated the right to property over the rights of a citizen. The communists, in turn, destroyed freedom by creating another class society, a new but inefficient economic model based on forced labor.

Social Democrats attach equal importance to the principles of individual freedom, solidarity and justice. In their opinion, the difference between capitalism and socialism lies not in the scheme of organization of the economy, but in the position that a person occupies in society, in his freedom, the opportunity to participate in making decisions that are significant for the state, the right to realize himself in thator other area.

State socialism

There are 2 forms of it:

  • Based on absolute government control of the economy. An example is the command-and-control and planning systems.
  • Market socialism. It is understood as such an economic model in which priority is given to state property, but at the same time the principles of a market economy are implemented.

Within the framework of market socialism, self-management is often established at enterprises. The position is affirmed that self-government (not only in the production sphere, but also in society as a whole) acts as the first element of socialism.

For this, according to Bazgalin, it is necessary to develop forms of free independent organization of citizens - from nationwide accounting to self-government and democratic planning.

The disadvantages of market socialism can be considered its ability to reproduce many of the problems of capitalism, including social inequality, instability, negative impact on nature. However, adherents of this direction of development of society believe that all these problems should be eliminated by active government intervention.

Recommended: