Explain briefly the following
Dicotomous between socialist economic system and capitalist economic system
A socialist economic system is one in which the means of production and distribution are owned and regulated by the state or the community as a whole. The primary goal is to ensure equality and collective welfare, with resources and wealth being redistributed to benefit all members of society. In this system, the state or government typically controls major industries and sets prices and wages.
On the other hand, a capitalist economic system is characterized by private ownership of the means of production and individual freedom to pursue economic interests. It operates on the principle of market competition, where prices and wages are determined by supply and demand. In capitalism, profit-driven individuals and businesses drive economic activities, with minimal state intervention or regulation.
The main difference between these two systems lies in the ownership and control of economic resources and the extent of government intervention. While socialism advocates for the collective ownership and redistribution of resources, capitalism emphasizes individual ownership and free market dynamics.