Capitalism is an economic term to describe a style of governing people within its structural limits. According to Dr.CQA, “Capitalism is an economic system in which trade, industry and the means of production are controlled by private self-interest owners with the goal of making personal profits; and that the individual rights of people extend to rights of life, liberty, property, and voluntary contractual exchange” (Quist-Adade, SOCI 2235: Social Theory and Social Justice, 2013, p. 61). It requires that the governing system remain un-involved in personal economic matters, with the notion that people are rational thinkers, and have the ability to maximize their own worth, minimize their own losses, and enter into contracts that economic harmony; thus they support private ownership as means of production.
Socialism focuses more on “public ownership as a means of production, with the idea of having collective goals and centralized decision making” (Quist-Adade, SOCI 2235: Social Theory and Social Justice, 2013, p. 62). It removes the right to private property, and places responsibility on the government for dictating the means of economic production; in hopes of creating fairness and equality among its members.
From a sociological perspective, I would have to disagree that a capital system is truly functional; as not all people are rational beings. As well, I believe that a social system, if structured fairly and accurately will produce the best outcome, as it encompasses the views of many and represents the thoughts and wishes of the majority.
Quist-Adade, C. (2013). SOCI 2235: Social Theory and Social Justice. Surrey, BC, Canada: Kwantlen Polytechnic University: Faculty of Arts.