What Is The Opposite Of Socialism

Hint: It is not necessarily capitalism

Socialism is an economic system wherein each receives benefit from the effort and talent of all. The method of allocation of the outcomes is not initially offered into evidence. That defect is a significant flaw.

The method of creation and distribution of goods and services under socialism is unknowable.

Capitalism, on the other hand, is about creation and distribution. Really that’s all it is. A way to distribute goods and services, with money as the device used to barter.

Socialism requires a political system to support it, while the political system attached to capitalism is not required to help the system work, but exists to restrict it.

Capitalism is not inherently a political system so cannot be easily compared to socialism

The principle difference

Socialism is a goal driven system. Capitalism is not. The goals of socialism are kindness, equality, (usually of outcome), fairness, (undefined), and respect for differences. There are no specific goals of capitalism, but rather a system that emphasizes processes. Production, efficiency, innovation and accumulating capital.

Any thinking person would agree fairness, kindness, equality, and respect are reasonable goals. The capitalist system does not address them. They are up to the participants.

Equality of outcome doesn’t fit very well with capitalism because it is not objective. Equality of opportunity is reasonable.

None of fairness, equality and respect are required under capitalism, but few of us are pure capitalists. We all have a sense of sharing.

Socialism has goals with no process to achieve them, while capitalism has a process and outcomes, without specific outcome goals.

Socialism cannot be implemented

Socialism lacks incentives to produce wealth, and it lacks a definitive method of distributing whatever may remain from the earlier semi-capitalist system.

Where will the wealth come from? To assume talented people will work to no advantage is unrealistic. To assume nature and human nature will ignore what is unrealistic is delusional. Mother Nature is not benign. Mother Nature is perfectly fair and ruthless about it. Mother Nature’s version of fair does not include something for nothing. Socialism on the other hand, is based on the principle of a free lunch.

Margaret Thatcher’s insight, “The problem with socialism is that you eventually run out of other peoples’ money.”

You cannot rationally choose socialism or any of its variants without knowing how and how much wealth will be created. You cannot distribute what does not exist.

Socialism is noble in one way

It is nearly universally based on good intentions.

It is the execution of it that fails. Until it develops a process to create wealth, it will continue to fail. It needs money to share and thus succeed. Margaret Thatcher again. “No one would remember the Good Samaritan if he’d only had good intentions; he had money as well.”

There is a choice

Wealth, unevenly distributed, or nothing, shared equally.

So far, socialism is more about envy than anything else and that is very wrong. When you think about it, envy is the only sin that has no pleasure component.


I help business owners, and professionals understand and manage risk and other financial issues. To help them achieve their goals, I use tax efficiencies and design advantages to acquire more efficient income and larger, more liquid estates.

Please be in touch if I can help you. don@moneyfyi.com 705-927-4770

5 Comments on “What Is The Opposite Of Socialism

  1. A thought offered elsewhere. Socialism is easy to market but “for your good” is deceptive. H.L. Mencken on the subject, “The urge to save humanity is almost always only a false-face for the urge to rule it. Power is what all messiahs really seek: not the chance to serve.”

  2. But Capitalism has its own flaws. Greed is the biggest problem of capitalism. Wars fought for oil are the result of greed which kill so many innocent people. Drug companies or Fast food companies hiding the facts at the cost health of common people is the result of greed. So both sides are not ideal.

  3. Capitalism is not flawless because people are flawed. But, capitalism is self correcting. As smart consumers notice the greed and unfair dealing, the business loses customers. Being evil is a quick fix and a slow loss. As we live in a quick fix world we have more of the problem. People should address cost instead of price. Cheap is expensive. Smart customers and smart voters will change the world. Maybe ruthlessly objective is better than smart. Capitalism lets us be our best. Socialism does not. Probably the best solution will be something like capitalism with a process and something like socialism with desirable goals. AI might help this happen because it will be able to tweak the process toward the goal without imposing fixed solutions. Randomness helps us improve.

    • Your thought may be right but requires two assumptions to be true.
      1) A standard of living is defined and accepted by all
      2) A method to generate the wealth necessary to sustain the resulting infrastructure is known and tested.

      Absent those socialism cannot exist in its true form.

      The problem with capitalism is that it creates non-uniform results and for those who want equal outcomes it is unsustainable. The equal outcome requirement denies that inputs are not equal. I have no idea how that disparity will be overcome. Even if possibel to overcome it, people are not all equally interested in everything. Should those that are passionate about poetry or music or art or business be denied the ability to express that passion. If not how does the systema ccomodate them?

      Who leads and how are decisions made? Expert opinion has proven unreliable. The market tends to correct weakd ecisions. Bureaucracies tend to double down.

      MAybe I am too narrow, but I cannot see how socialism is sustainable.

      Thanks for joining the conversation.

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