Are capitalism and socialism mainly economic systems?
Capitalism is wholly an economic system and socialism is not. Socialism is a political theory that government may plunder economic systems and redistribute the wealth that was plundered. Capitalism relies heavily upon free market principles and Socialism ignores willfully all market principles. In a free and unregulated market prices of goods and services will fluctuate with supply and demand, in Socialism prices will be artificially suppressed, without regard to the cost in relationship to demand. The socialist agenda either doesn’t understand or doesn’t care that price controls are not cost controls, and the problem with artificially suppressing prices is that those who stand to lose by such suppression will stop producing, and this in turn creates a bigger demand. The smaller the supply in relation to a growing demand, the higher prices get and no amount of government control can stop this basic law of economics.
