I was just thinking about how the typical person doesn't really understand the dynamic between these 2 so I've decided to offer a basic rundown of what the 2 ideas represent in historical terms.
Both capitalism and socialism arose at the same time, revolutionary movements during the Renaissance as the common people sought to bring down their often tyrannical overlords. Unlike today revolutionary capitalism and revolutionary socialism, while offering different means, promoted the same end: Popular liberation. Because of this lack of distinction and the fact that capitalism prompted greater wealth, elevating its leaders to greater prominence, capitalism became the goto for revolutionaries of the late Renaissance while socialism fell to the wayside, supported largely by fringe anarchists, commonly known as communists.
Then the Industrial Revolution happened and revolutionary capitalism gave way to the post revolutionary capitalism we know today, an economic model motivated by the quest for profit by those with capital. This gave rise to an initially slow but exponentially increasing centralization of wealth. By the 19th Century this had become sufficiently obvious to leave revolutionary socialism as the only clear liberating ideology. This is the point at which those without a familiarity with economic history generally think of as the birth of socialism. The term communism also fell out of use at this time.
In the 20th Century revolutionary socialism gave way to post revolutionary socialism as it was applied to the real (now industrialized) world. Unlike capitalism, post revolutionary socialism diverged into 2 branches, each manifesting popular will into a central authority. The 1st branch (the dominant form of socialism in the 20th Century) placed the will of the common people in the hands of the state. These socialists resurrected the term communism and repurposed it for themselves. This form of socialism gave governments an economic monopoly, leading to rigid control economies and the massive temptation of absolute power. On paper the more efficient of the 2 post revolutionary branches, absolute power corrupts absolutely and these governments inevitably became as bad as the worst capitalist societies. The 2nd branch (the most dominant form of socialism today) placed the will of the people in the hands of business. Ironically considering his influence in the other variant, Marx was 1 of the earliest advocates for this form of socialism and it can most obviously be seen in action today in Scandinavia. This form of socialism doesn't allow for a monopoly on power and promotes a free market economy which in turn allows a socialist economy to work alongside rather in isolation of capitalism. Unlike their capitalist counterparts, socialist businesses are motivated not by the profit motive but by the enrichment of the workforce who control (thu representation or direct ownership) the businesses.
Both capitalism and socialism arose at the same time, revolutionary movements during the Renaissance as the common people sought to bring down their often tyrannical overlords. Unlike today revolutionary capitalism and revolutionary socialism, while offering different means, promoted the same end: Popular liberation. Because of this lack of distinction and the fact that capitalism prompted greater wealth, elevating its leaders to greater prominence, capitalism became the goto for revolutionaries of the late Renaissance while socialism fell to the wayside, supported largely by fringe anarchists, commonly known as communists.
Then the Industrial Revolution happened and revolutionary capitalism gave way to the post revolutionary capitalism we know today, an economic model motivated by the quest for profit by those with capital. This gave rise to an initially slow but exponentially increasing centralization of wealth. By the 19th Century this had become sufficiently obvious to leave revolutionary socialism as the only clear liberating ideology. This is the point at which those without a familiarity with economic history generally think of as the birth of socialism. The term communism also fell out of use at this time.
In the 20th Century revolutionary socialism gave way to post revolutionary socialism as it was applied to the real (now industrialized) world. Unlike capitalism, post revolutionary socialism diverged into 2 branches, each manifesting popular will into a central authority. The 1st branch (the dominant form of socialism in the 20th Century) placed the will of the common people in the hands of the state. These socialists resurrected the term communism and repurposed it for themselves. This form of socialism gave governments an economic monopoly, leading to rigid control economies and the massive temptation of absolute power. On paper the more efficient of the 2 post revolutionary branches, absolute power corrupts absolutely and these governments inevitably became as bad as the worst capitalist societies. The 2nd branch (the most dominant form of socialism today) placed the will of the people in the hands of business. Ironically considering his influence in the other variant, Marx was 1 of the earliest advocates for this form of socialism and it can most obviously be seen in action today in Scandinavia. This form of socialism doesn't allow for a monopoly on power and promotes a free market economy which in turn allows a socialist economy to work alongside rather in isolation of capitalism. Unlike their capitalist counterparts, socialist businesses are motivated not by the profit motive but by the enrichment of the workforce who control (thu representation or direct ownership) the businesses.
