Mediaboss Marketing

Ideas Laissez-faire means to "let it be"; opposed to government intervention in economics because capitalists believe it introduces inefficiencies. A free market produces the best economic outcome for society. Govt. should not pick winners and losers. All individuals should have access to basic articles of consumption and public goods to allow for self-actualization. Large-scale industries are collective efforts and thus the returns from these industries must benefit society as a whole. Religion Permitted/Freedom of Religion Freedom of religion, but usually promotes secularism. Economic System Market-based economy combined with private or corporate ownership of the means of production. Goods and services are produced to make a profit, and this profit is reinvested into the economy to fuel economic growth. The means of production are owned by public enterprises or cooperatives, and individuals are compensated based on the principle of individual contribution. Production may variously be coordinated through either economic planning or markets. Philosophy Capital (or the "means of production") is owned, operated, and traded for the purpose of generating profits for private owners or shareholders. Emphasis on individual profit rather than on workers or society as a whole. From each according to his ability, to each according to his contribution. Emphasis on profit being distributed among the society or workforce to complement individual wages/salaries. Key Proponents Adam Smith, David Ricardo, Milton Friedman, Fredrich Hayek, Ayn Rand, Murray Rothbard Robert Owen, Pierre Leroux, Karl Marx, Fredrick Engels, John Stuart Mill, Albert Einstein, George Bernard Shaw, Thorstein Veblen, Emma Goldman. Political System Can coexist with a variety of political systems, including dictatorship, democratic republic, anarchism, and direct democracy. Can coexist with different political systems. Most socialists advocate participatory democracy, some (Social Democrats) advocate parliamentary democracy, and Marxist-Leninists advocate "Democratic centralism". Economic coordination Relies principally on markets to determine investment, production and distribution decisions. Markets may be free-markets, regulated-markets, or may be combined with a degree of state-directed economic planning or planning within private companies. Planned-Socialism relies principally on planning to determine investment and production decisions. Planning may be centralized or decentralized. Market-socialism relies on markets for allocating capital to different socially-owned enterprises. Political movements Classical liberalism, Social liberalism, Libertarianism, Neo-liberalism, Modern Social-Democracy, Anarcho-Capitalism Democratic Socialism, Communism, Libertarian Socialism, Anarchism, Syndicalism. Private Property Private property in capital goods is the dominant form of property. Public property and state property play a secondary role, and there might also be a limited number of collective property in the economy. Two kinds of property, personal property, such as houses, clothing, etc. owned by the individual. Public property includes factories, and means of production owned by the state but with worker control. Social Structure Classes exist based on their relationship to the means of production: the ruling class, or "capitalists", own shares of the means of production and derive their income in that way. In contrast, the working class is dependent on wages or salaries. Class distinctions are diminished. Key elements The accumulation of capital drives economic activity - the need to continuously produce profits and reinvest this profit into the economy. "Production for profit": useful goods and services are a byproduct of pursuing profit. Economic activity and production especially are adjusted to meet human needs and economic demands. "Production for use": useful goods and services are produced specifically for their usefulness. Definition A theory or system of social organization based on the free market and privatization in which ownership is ascribed to the individual persons. A theory or system of social organization based on the holding of most property in common, with actual ownership ascribed to the workers. Way of Change Fast change within the system. In theory, the relationship between buyer and seller (the market) is what fuels what is produced. Government can change rules of conduct/business practices through regulation or ease of regulations. Workers in a Socialist-state are the agent of change rather than any market or desire on the part of consumers. Change by the workers can be swift or slow, depending on change in ideology or even whim. Ownership structure The means of production are privately-owned and operated for a private profit. This drives incentives for producers to engage in economic activity. The means of production are socially-owned with the surplus value produced accruing to either all of society (in Public-ownership models) or to all the employee-members of the enterprise (in Cooperative-ownership models). Free Choice All individuals make decisions for themselves. People will make the best decisions because they must live with the consequences of their actions. All choices, including education, religion, employment and marriage, are up to the individual. All health care and education is provided through a socialized system funded by taxation. Citizens have free and equal access. Examples The modern world economy operates largely according to the principles of capitalism. The UK, US, and Hong Kong are mostly capitalist. Singapore is an example of state capitalism. Union of Soviet Socialist Republics (USSR): Although the actual categorization of the USSR's economic system is in dispute, it is often considered to be a form of centrally-planned socialism. Discrimination Government does not discriminate based on race, color, or other arbitrary classification. The people are considered equal, laws are made when necessary to protect people from discrimination.

Read more:
Capitalism vs Socialism - Difference and Comparison | Diffen