Hello Suhani Gupta,

Socialism and capitalism are two different ways of organising economy of an country.

Socialism,

In Socialism, the core or critical industries like Factories,health care sectors, education institutions are owned and controlled by the government, the government collect tax from the people and invest it in the government controlled sectors.the government here controls the production flows they are the ones who makes decisions, also the decisions to allot weath among the people to lift up the impoverished society.

The soul purpose of socialsm is to treat every citizens equal regardless of their background to reduce the gap between rich and poor the main aim is to manufacture and distribute in their own country itself .

Capitalism.

In capitalism the government does not mendle in the business issues as long as they abide by the law, capitalism is all about the private ownership and competition ,the more competition you have the more quality of the product will improve and the people will be exposed with more useful products,in capitalism government does not involve in the production and price control decisions it’s all depend on supply and demand concept based on that the prices of the products are decided.

In conclusion,

socialism promotes shared ownership and equal distribution of wealth, while capitalism supports private ownership and wealth based on individual success.