Question

Describe the differences or dissimilarities between Capitalism and Socialism under the following heading:

Private Ownership versus State Ownership

Answer 1

The first and the most important distinction between Capitalism and Socialism is that “the means of production in a Capitalist economy remain in private hands.” (the capitalists or the industrialists). The Socialist thinkers hold that the material resources of the country (land, coal, iron, railways, road- transport, and banks, etc.) should be nationalised, i.e., brought under State-control.