There are many different views concerning how an economy should be run and operated. The two most widely known are Capitalism and Socialism. These economic methods vary substantially in their beliefs of who should be involved in, as well as how to regulate, the economy. Most economies have characteristics from both systems, but tend to contain more elements of one than the other.
Socialism is an economic idea that states the government or state should be in charge of economic planning, production, and distribution of goods. In other words, the businesses are owned by the citizenry and government, rather than by individuals. Socialism tends to favor cooperation, whereas capitalism is characterized by competition. In Socialism, competition is not prevalent, seeing as there is no one to compete with, the government being the sole owners of any businesses. Apparently, this system has not been very well received according to Wei Luo of the Washington University of Law's Socialist Law in Transition Seminar (Fall 2001); the only countries that currently label themselves as Socialists are China, North Korea, Cuba, and Vietnam. However, all but North Korea and Cuba are undergoing drastic political and economic reform. .
Capitalism is the economic system based on private or corporate ownership, production, and distribution of goods for profit. This can also be defined as "free enterprise" in which the government does not interfere in business. Capitalism is characterized by competition in which there is rivalry between businesses in supplying goods and/or services to the consumers. Consumers in turn seek the business that offers the best possible deal in purchasing goods and venders look to make the sale allowing them the most profit. Some capitalist countries include the United States, Ireland, England, Australia, Switzerland, and the Netherlands, among others.
The economic system I favor is Capitalism.