capitalism favors private ownership and competition, while socialism promotes collective ownership and government intervention to address economic disparities and ensure social welfare.

Capitalism is an economic system where businesses and industries are privately owned for profit. It relies on competition in markets to drive innovation and economic growth, with minimal government interference.

Socialism, in contrast, advocates for collective or state ownership of industries to reduce economic inequalities. It aims to distribute wealth and resources more equitably among people, often through government intervention and social programs.

Sweden, Norway, Denmark, and Finland practice a form of socialism known as social democracy. They blend socialist principles with capitalist economies, focusing on extensive social welfare programs funded by high taxes. These nations prioritize providing universal healthcare, education, and social security to ensure a good quality of life for all citizens while maintaining market competition.

Cuba, Venezuela, and China, lean more towards state socialism. They emphasize central planning and state ownership of major industries to achieve social goals like reducing poverty and promoting equality.