Capitalism and Socialism

The Wisegeek has a good definition of Capitalism and Socialism:

Capitalism is an economic system where resources — whether monetary or otherwise — are privately owned, whereas socialism is a system where goods are owned by the state or the public. Capitalism is founded on the belief that competition brings out the best in people.

Socialism, on the other hand, believes that cooperation is the best way for people to coexist. The main difference between these two economic systems is the distribution and earning of wealth. In capitalism, everyone works for his own wealth, while in socialism everyone works for wealth which is distributed equally to everyone.