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Capitalism and socialism are somewhat opposing schools of thought

in economics. The central arguments in the socialism vs. capitalism
debate are about economic equality and the role of government.
Socialists believe economic inequality is bad for society, and the
government is responsible for reducing it via programs that benefit the
poor (e.g., free public education, free or subsidized healthcare, social
security for the elderly, higher taxes on the rich). On the other hand,
capitalists believe that the government does not use economic
resources as efficiently as private enterprises do, and therefore society
is better off with the free market determining economic winners and
The U.S. is widely considered the bastion of capitalism, and large parts
of Scandinavia and Western Europe are considered socialist
democracies. However, the truth is every developed country has some
programs that are socialist.
An extreme form of socialism is communism.
See also Communism vs. Socialism.

Comparison chart
Capitalism versus Socialism comparison chart

Capitalism Socialism
Philosophy Capital (or the "means of production") From each according to his ability, to
is owned, operated, and traded in order each according to his contribution.
to generate profits for private owners Emphasis on profit being distributed
or shareholders. Emphasis on among the society or workforce to
individual profit rather than on complement individual wages/salaries.
workers or society as a whole. No
restriction on who may own capital.

Ideas Laissez-faire means to "let it be"; All individuals should have access to
opposed to government intervention in basic articles of consumption and
economics because capitalists believe public goods to allow for self-
it introduces inefficiencies. A free actualization. Large-scale industries are
market produces the best economic collective efforts and thus the returns
outcome for society. Government from these industries must benefit
should not pick winners and losers. society as a whole.

Definition A theory or system of social A theory or system of social

organization based around a free organization based on the holding of
market and privatization in which most property in common, with actual
ownership is ascribed to the individual ownership ascribed to the workers.
persons. Voluntary co-ownership is
also permitted.

Key Richard Cantillon, Adam Smith, David Charles Hall, François-Noël Babeuf,
Proponents Ricardo, Frédéric Bastiat, Ludwig von Henri de Saint-Simon, Robert Owen,
Capitalism versus Socialism comparison chart

Capitalism Socialism
Mises, Fredrich A. Hayek, Murray N. Charles Fourier, Louis Auguste
Rothbard, Ayn Rand, Milton Blanqui, William Thompson, Thomas
Friedman. Hodgskin, Pierre-Joseph Proudhon,
Louis Blanc, Moses Hess, Karl Marx,
Friedrich Engels, Mikhail Bukinin.

Key Elements Competition for ownership of capital Calculation in kind, Collective

drives economic activity & creates a ownership, Cooperative common
price system that determines resource ownership, Economic democracy
allocation; profits are reinvested in the Economic planning, Equal opportunity,
economy. "Production for profit": Free association, Industrial democracy,
useful goods and services are a Input–output model, Internationalism,
byproduct of pursuing profit. Labour voucher, Material balancing.

Political Can coexist with a variety of political Can coexist with different political
System systems, including systems. Most socialists advocate
dictatorship, democratic republic, participatory democracy, some (Social
anarchism, and direct democracy. Democrats) advocate parliamentary
Most capitalists advocate a democratic democracy, and Marxist-Leninists
republic. advocate "Democratic centralism."

Economic Market-based economy combined with The means of production are owned by
System private or corporate ownership of the public enterprises or cooperatives, and
means of production. Goods and individuals are compensated based on
services are produced to make a profit, the principle of individual contribution.
and this profit is reinvested into the Production may variously be
economy to fuel economic growth. coordinated through either economic
planning or markets.

Social Classes exist based on their Class distinctions are diminished.

Structure relationship to capital: the capitalists Status derived more from political
own shares of the means of production distinctions than class distinctions.
and derive their income in that way Some mobility.
while the working class is dependent
on wages or salaries. Large degree of
mobility between the classes.

Religion Freedom of religion. Freedom of religion, but usually

promotes secularism.

Private Private property in capital and other Two kinds of property: Personal
Property goods is the dominant form of property, such as houses, clothing, etc.
property. Public property and state owned by the individual. Public
property play a secondary role, and property includes factories, and means
there might also be some collective of production owned by the State but
property in the economy. with worker control.

Free Choice All individuals make decisions for Religion, jobs, & marriage are up to the
themselves. People will make the best individual. Compulsory education.
decisions because they must live with Free, equal access to healthcare &
the consequences of their actions. education provided through a socialized
Freedom of choice allows consumers system funded by taxation. Production
Capitalism versus Socialism comparison chart

Capitalism Socialism
to drive the economy. decisions driven more by State decision
than consumer demand.

Economic Relies principally on markets to Planned-socialism relies principally on

Coordination determine investment, production, and planning to determine investment and
distribution decisions. Markets may be production decisions. Planning may be
free-markets, regulated-markets, or centralized or decentralized. Market-
may be combined with a degree of socialism relies on markets for
state-directed economic planning or allocating capital to different socially-
planning within private companies. owned enterprises.

Examples The modern world economy operates Union of Soviet Socialist Republics
largely according to the principles of (USSR): although the actual
capitalism. The UK, US, and Hong categorization of the USSR's economic
Kong are mostly capitalist. Singapore system is in dispute, it is often
is an example of state capitalism. considered to be a form of centrally-
planned socialism.

Ownership The means of production are privately- The means of production are socially-
Structure owned and operated for a private owned with the surplus value produced
profit. This drives incentives for accruing to either all of society (in
producers to engage in economic Public-ownership models) or to all the
activity. Firms can be owned by employee-members of the enterprise (in
individuals, worker co-ops, or Cooperative-ownership models).

Discrimination Government does not discriminate The people are considered equal; laws
based on race, color, or other arbitrary are made when necessary to protect
classification. Under state capitalism people from discrimination.
(unlike free-market capitalism), Immigration is often tightly controlled.
government may have policies that,
intentionally or not, favor the capitalist
class over workers.

View of war War, although good for select Opinions range from prowar (Charles
industries, is bad for the economy as a Edward Russell, Allan L. Benson) to
whole. It wastefully diverts resources antiwar (Eugene V. Debs, Norman
away from producing that which Thomas). Socialists tend to agree
would raise consumers' standard of with Keynesians that war is good for
living (i.e., that which is demanded by the economy by spurring production.
consumers), toward destruction.

Political Classical liberalism, social liberalism, Democratic socialism, communism,

Movements libertarianism, neo-liberalism, modern libertarian socialism, social anarchism,
social-democracy, and anarcho- and syndicalism.

Way of Change Fast change within the system. In Workers in a socialist state are the
theory, consumer demand is what nominal agent of change rather than
drives production choices. any market or desire on the part of
Government can change the rules of consumers. Change by the State on
conduct and/or business practices behalf of workers can be swift or slow,
Capitalism versus Socialism comparison chart

Capitalism Socialism
through regulation or ease of depending on change in ideology or
regulations. even whim.

Variations Free-market capitalism (also known as Market socialism, communism, state

laissez-faire capitalism), state socialism, social anarchism.
capitalism (also known as neo-

Earliest The ideas of trade, buying, selling, and In 1516, Thomas More write in
Remnants such have been around since "Utopia" about a society based around
civilization. Free-market, or lasseiz- common ownership of property. In
faire capitalism was brought to the 1776, Adam Smith advocated the labor
world during the 18th century by John theory of value, ignoring the previous
Locke and Adam Smith, aiming for an Cantillonian view that prices are
alternative to feudalism. derived from supply and demand.

Means of Capitalism promotes a "society of Usage of a government.

control contract" as opposed to a "society of
status." Production decisions are
driven by consumer demand and
resource allocation is driven by a price
system arising from competition for

View of the Capitalists see capitalistic and market- Socialism is a movement of both the
world based societies as beacons of freedom, worker and middle-class, all for a
priding themselves on permitting common democratic goal.
social and economic freedoms not
experienced under Communism and
Fascism. The focus is on individualism
as opposed to nationalism.
Kapitaisme dan sosialisme
Socialism is a concept that individuals should not have ownership of land, capital (money),
or industry, but rather the whole community collectively owns and controls property,
goods, and production. Ideally, in this system all share equally in work and the fruits of
their labor. Ideally this is a Christian version of help the poor and needy, sharing equally,
but in the real world this can cause some problems as we will see later.
Sosialisme adalah konsep bahwa individu tidak boleh memiliki kepemilikan atas tanah, modal
(uang), atau industri, namun keseluruhan masyarakat secara kolektif memiliki dan
mengendalikan properti, barang, dan produksi. Idealnya, dalam sistem ini semua sama-sama
bekerja dan hasil kerja mereka. Idealnya ini adalah versi Kristen untuk membantu orang miskin
dan membutuhkan, berbagi dengan adil, namun di dunia nyata hal ini dapat menyebabkan
beberapa masalah seperti yang akan kita lihat nanti.

Under Capitalism, individuals own and control land, capital, and
production of industry. Individuals are free to purchase and own
their own homes, cars, furniture, and other goods such as TV,
radios, computers, boats, or any thing else you might want. You
have total freedom to live where you want and what type of job
field you want to pursue. If you have an idea for a new business
or invention, you are free to pursue this without government
interference. Under this system you have the maximum number
of choices in life. This is the 'pursuit of happiness' from
the Declaration of Independence.

America's first experiment with Socialism:

After the Pilgrims landed in 1620, they decided that they would
plant a community garden and share the fruits and vegetables
equally at the end of the season. The idea was that all would
work together and share equally at the end of the season.
However, no one wanted to work in the gardens. Most were
reluctant to do the planting and weed a garden that was not
theirs. That first year, the gardens were not well kept and they
had poor crops, which led to hunger the next winter. Under this
system, by 1623 the colony was facing starvation. It was decided
that a new system be used the following year. Each family was
given a plot of land to garden in proportion to its size. They
would be allowed to keep the fruits and vegetables for them

Governor William Bradford's account. . .

This had very good success, for it made all hands industrious,
so as much more corn was planted than otherwise would
have been by any means the Governor or any other could
use, and saved him a great deal of trouble, and gave far
better content. The women now went willingly into the field,
and took their little ones with them to set corn; which before
would allege weakness and inability; whom to have
compelled would have been thought great tyranny and

The lesson here seems to be, when you own it you take care of it.
If it belongs to someone else, you won't take interest in it or care
for it. But if it is yours to own, you take interest in it and take
care of it. The Pilgrims started out with socialism for the first two
years but abandoned it in favor for capitalism after two years,
which worked much better.

Di bawah Kapitalisme, individu memiliki dan mengendalikan tanah, modal, dan produksi industri. Individu bebas
membeli dan memiliki rumah, mobil, perabotan, dan barang-barang lainnya seperti TV, radio, komputer, kapal, atau
hal lain yang mungkin Anda inginkan. Anda memiliki kebebasan total untuk tinggal di tempat yang Anda inginkan
dan jenis lapangan pekerjaan apa yang ingin Anda kejar. Jika Anda memiliki ide untuk bisnis baru atau penemuan,
Anda bebas untuk mengejar ini tanpa campur tangan pemerintah. Di bawah sistem ini Anda memiliki jumlah pilihan
maksimal dalam kehidupan. Inilah 'pencarian kebahagiaan' dari Deklarasi Kemerdekaan.

Percobaan pertama Amerika dengan Sosialisme:

Setelah para peziarah mendarat pada tahun 1620, mereka memutuskan bahwa mereka akan menanam kebun
komunitas dan berbagi buah dan sayuran secara setara di penghujung musim. Idenya adalah bahwa semua akan
bekerja sama dan berbagi sama di akhir musim. Namun, tidak ada yang mau bekerja di kebun. Sebagian besar
enggan melakukan penanaman dan gulma kebun yang bukan milik mereka. Tahun pertama itu, taman-taman itu
tidak terpelihara dengan baik dan tanamannya buruk, yang menyebabkan kelaparan di musim dingin berikutnya. Di
bawah sistem ini, pada tahun 1623 koloni itu menghadapi kelaparan. Diputuskan bahwa sistem baru akan digunakan
pada tahun berikutnya. Setiap keluarga diberi sebidang tanah ke kebun sebanding dengan ukurannya. Mereka akan
diizinkan untuk menyimpan buah dan sayuran untuk mereka sendiri.

Rekening Gubernur William Bradford . .

Ini sukses sangat baik, karena membuat semua orang rajin bekerja, sehingga lebih banyak jagung ditanam daripada
yang seharusnya dilakukan oleh Gubernur atau yang lainnya dapat digunakan, dan menyelamatkannya banyak
masalah, dan memberikan konten yang jauh lebih baik. . Para wanita sekarang pergi dengan rela ke lapangan, dan
membawa anak-anak mereka bersama mereka untuk menyiapkan jagung; yang sebelumnya akan menuduh
kelemahan dan ketidakmampuan; Yang harus dipaksakan pasti dianggap tirani dan penindasan yang hebat.

Pelajaran di sini nampaknya, saat Anda memilikinya Anda menjaganya. Jika milik orang lain, Anda tidak akan
tertarik atau merawatnya. Tapi jika itu milik Anda untuk dimiliki, Anda mementingkan dan mengurusnya. Para
peziarah memulai dengan sosialisme selama dua tahun pertama namun meninggalkannya untuk kapitalisme setelah
dua tahun, yang bekerja jauh lebih baik.

A modern day example: Apple

Steve Jobs, and Steve Wozniak, built the first Apple Computer out
of their garage. They were just young men with an idea that
people would like to own their own affordable computers. They
didn't have enough money to start a company, so they sought out
money from a capitalist. This could have been a bank or a rich
individual. In their case it was multi-millionaire Mike Markkula,
who provided essential business expertise and funding of
$250,000. Jobs and Wozniak were right, people did want to own
home computers and sales took off. Today Apple, employs over
48,000 employees world wide, and has annual sales over 65
billion dollars. As of September 2011, Apple is the largest publicly
traded company in the world by market capitalization and the
largest technology company in the world by revenue and profit.

Capitalism allowed these two men the freedom to buy parts for
the first prototype computer. The freedom to seek out funds to
set up a new company, develop production and distribution to
customers, is the American Enterprise of Invention which we call
Capitalism. Did Jobs and Wozniak steal from the poor to become
rich? NO! They borrowed money from a Capitalist, who wanted a
return on his investment. They all took a gamble and might have
lost, but instead they won. They ended up creating great
wealth for themselves, their employees, and their stock holders.
They did not steal money from anybody!
Contoh hari modern: Apple Computers:

Steve Jobs, dan Steve Wozniak, membangun Apple Computer pertama dari garasi mereka. Mereka hanya pria muda
dengan gagasan bahwa orang ingin memiliki komputer terjangkau mereka sendiri. Mereka tidak punya cukup uang
untuk memulai sebuah perusahaan, jadi mereka mencari uang dari seorang kapitalis. Ini bisa saja bank atau individu
kaya. Dalam kasus mereka itu adalah jutawan multi-jutawan Mike Markkula, yang menyediakan keahlian bisnis
penting dan mendanai $ 250.000. Jobs dan Wozniak benar, orang memang ingin memiliki komputer di rumah dan
penjualannya akan meluncur. Saat ini Apple, mempekerjakan lebih dari 48.000 karyawan di seluruh dunia, dan
memiliki penjualan tahunan lebih dari 65 miliar dolar. Hingga September 2011, Apple merupakan perusahaan
publik terbesar di dunia dengan kapitalisasi pasar dan perusahaan teknologi terbesar di dunia dengan pendapatan dan

Kapitalisme membiarkan kedua orang ini kebebasan membeli suku cadang untuk komputer prototipe pertama.
Kebebasan untuk mencari dana untuk mendirikan perusahaan baru, mengembangkan produksi dan distribusi ke
pelanggan, adalah American Enterprise of Invention yang kita sebut Kapitalisme. Apakah Jobs dan Wozniak
mencuri dari orang miskin menjadi kaya? TIDAK! Mereka meminjam uang dari seorang Kapitalis, yang
menginginkan pengembalian investasinya. Mereka semua berjudi dan mungkin kalah, tapi malah menang. Mereka
akhirnya menciptakan kekayaan besar untuk diri mereka sendiri, karyawan mereka, dan pemegang saham mereka.
Mereka tidak mencuri uang dari siapapun!

Why Social Justice is wrong: Take from the rich

and give to the poor. Income Redistribution.

Steve Jobs was not born rich. He became rich by following his
dream and hard work. In doing so, he created new products,
he created a new company and new jobs. This all worked
to create more wealth for many people. He did not steal his
money from the poor like some progressive liberals would have
you believe. He created his money. So should he, and all other
rich people, have to give their money away until everyone in
America has an equal amount? This is the mentality of liberals;
they sold the money from the poor, and they must give it back.
This is the lie of the Communist Social Justice ideology.
The idea that all Capitalist steal money from the poor is utter non-
sense. Most Capitalist create money through innovation of new
ideas, hard work, good investments, good business decisions and
properly managing their assets.

While it is true that there are dishonest crooks in business that

can and do steal under Capitalism, there are also crooks and
thieves under Socialism and Communism. Human nature being
what it is, people tend to be lazy. What can I get without having
to work for it. If I can steal it without having to work to get it,
maybe I'll just take it. Maybe mom and dad will just give me my
allowance even though I didn't clean the kitchen like I was
suppose to do. (Something for nothing! We always want the easy
way don't we.)
Mengapa Keadilan Sosial salah: Ambil dari orang kaya dan berikan kepada orang miskin. Redistribusi pendapatan

Steve Jobs tidak terlahir kaya. Ia menjadi kaya dengan mengikuti mimpinya dan kerja kerasnya. Dengan melakukan
itu, dia menciptakan produk baru, dia menciptakan sebuah perusahaan baru dan pekerjaan baru. Ini semua bekerja
untuk menciptakan lebih banyak kekayaan bagi banyak orang. Dia tidak mencuri uangnya dari orang miskin seperti
beberapa kaum liberal progresif yang akan Anda percayai. Dia menciptakan uangnya. Jadi haruskah dia, dan semua
orang kaya lainnya, harus memberikan uang mereka sampai semua orang di Amerika memiliki jumlah yang sama?
Inilah mentalitas kaum liberal; Mereka menjual uang dari orang miskin, dan mereka harus mengembalikannya.
Inilah kebohongan ideologi Komunis Keadilan Sosial.

Gagasan bahwa semua Kapitalis mencuri uang dari orang miskin sama sekali tidak masuk akal. Kebanyakan
Kapitalis menciptakan uang melalui inovasi gagasan baru, kerja keras, investasi yang baik, keputusan bisnis yang
baik dan mengelola aset mereka dengan baik.

Meskipun benar bahwa ada penjahat yang tidak jujur dalam bisnis yang dapat dan memang mencuri di bawah
Kapitalisme, ada juga penjahat dan pencuri di bawah Sosialisme dan Komunisme. Sifat manusia menjadi seperti apa
adanya, orang cenderung malas. Apa yang bisa saya dapatkan tanpa harus bekerja untuk itu. Jika saya bisa
mencurinya tanpa harus berusaha mendapatkannya, mungkin saya akan menerimanya. Mungkin ibu dan ayah hanya
akan memberi saya uang saku saya meskipun saya tidak membersihkan dapur seperti yang seharusnya saya lakukan.
(Sesuatu untuk apa-apa! Kami selalu menginginkan jalan yang mudah bukan kita.)

Legalise prostition
We interviewed 854 people currently or recently in prostitution in 9 countries (Canada,
Colombia, Germany, Mexico, South Africa, Thailand, Turkey, United States, and Zambia),
inquiring about current and lifetime history of sexual and physical violence. We found that
prostitution was multitraumatic: 71% were physically assaulted in prostitution; 63% were raped;
89% of these respondents wanted to escape prostitution, but did not have other options for
survival. A total of 75% had been homeless at some point in their lives; 68% met criteria for
PTSD. Severity of PTSD symptoms was strongly associated with the number of different types
of lifetime sexual and physical violence.

Our findings contradict common myths about prostitution: the assumption that street prostitution
is the worst type of prostitution, that prostitution of men and boys is different from prostitution
of women and girls, that most of those in prostitution freely consent to it, that most people are in
prostitution because of drug addiction, that prostitution is qualitatively different from trafficking,
and that legalizing or decriminalizing prostitution would decre
Kami mewawancarai 854 orang yang saat ini atau baru-baru ini melakukan pelacuran di 9 negara (Kanada,
Kolombia, Jerman, Meksiko, Afrika Selatan, Thailand, Turki, Amerika Serikat, dan Zambia), menanyakan riwayat
kekerasan seksual dan fisik terkini dan seumur hidup. Kami menemukan bahwa prostitusi multitraitikus: 71%
diserang secara fisik dalam prostitusi; 63% diperkosa; 89% responden ini ingin melarikan diri dari pelacuran, namun
tidak memiliki pilihan lain untuk bertahan hidup. Sebanyak 75% telah kehilangan tempat tinggal di beberapa titik
dalam kehidupan mereka; 68% memenuhi kriteria untuk PTSD. Tingkat keparahan gejala PTSD sangat terkait
dengan jumlah jenis kekerasan seksual dan fisik seumur hidup.

Temuan kami bertentangan dengan mitos umum tentang pelacuran: anggapan bahwa prostitusi jalanan adalah jenis
pelacuran terburuk, bahwa pelacuran laki-laki dan anak laki-laki berbeda dengan pelacuran perempuan dan anak
perempuan, bahwa sebagian besar orang yang melakukan prostitusi dengan bebas mengizinkannya, bahwa
kebanyakan orang dalam prostitusi karena kecanduan narkoba, pelacuran itu secara kualitatif berbeda dari
perdagangan manusia, dan pelacuran legalisasi atau dekriminalisasi akan menurun