LogFAQs > #937181297

The definitions have become increasingly murky, especially because the crony-capitalism in the US bears little resemblance to actual free market capitalism although our market is free in many important regards (even if the government both protects businesses when they would fail and businesses petition government to pass regulations to stifle competition by creating entry barriers). And, generally speaking, things aren't necessarily going to be exclusively one thing or the other. The easier differentiation is government solutions vs free-market solutions. Government-run energy and transportation is more socialist/communist whereas capitalism puts those fields within the realm of individuals (but even then you have regulation rather than a completely free market)

The easiest working definition for capitalism tends to concentrate power in the hands of the people as individuals whereas socialism/communism/etc puts power in the hands of a government ostentatiously acting on the behalf of people as a collective. Realistically speaking, though, socialist systems don't serve the people because governments exist to preserve themselves first and foremost (and to benefit members of government in that process). That's why you typically don't see peaceful dissolution of government, instead it's always a bloody affair. By contrast, capitalism is a great system for anybody with an entrepreneurial spirit, intelligence, and a willingness to work hard, but it doesn't favor low-performers. However, overall lives tend to be better under systems with a good amount of capitalism because it does more to drive innovation than socialist/communist systems, either because competition provides a crucible for innovation, there's more incentive to innovate, or just because it's an individualistic system (thereby nurturing things like creativity)

Under every system, you're inevitably going to have elites. However, it's easier for elites to preserve their power in socialist/communist systems because they can control who challenges their power. And any large-government system is going to be massively corrupt.

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There are precious few at ease / With moral ambiguities / So we act as though they don't exist.