The essential difference between capitalism and socialism is that ........

Economic and social issues (RBI) Growth and development

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The essential difference between capitalism and socialism is that

capitalism exploits the worker and socialism exploits the property owner.

capitalism relies on the market to make economic decisions and socialism
uses central planning.

capitalism grows through rent seeking and socialism grows through government
direction.

capitalism relies on consumer satisfaction to dictate choices and socialism relies
on producer satisfaction.

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Explanation:

In capitalist economies, governments play a minimal role in deciding what to produce, how much to produce, and when to produce it, leaving the cost of goods and services to market forces. When entrepreneurs spot openings in the marketplace, they rush in to fill the vacuum.

In socialist economies, important economic decisions are not left to the markets or decided by self-interested individuals. Instead, the government—which owns or controls much of the economy's resources—decides the whats, whens, and hows of production. This approach is also called "centralized planning."