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When two terms such as Capitalism and Socialism are studied over decades or even centuries and have libraries of books written about them, their definitions tend to become rather ambiguous. Each author adds his own interpretation, even redefining the original meaning. It becomes difficult to use the words and have them understood in any common way.

To compare these two terms, we should first accept the traditional use and then it will help us to explore comparisons in both theoretical examples and real world examples of the social systems these words might represent.

Socialism is a social and economic system wherein the "means of production" is owned by the State or cooperatives. The "means of production" is considered anything used in the productive process which would fundamentally be the land and resources and what people produce from these, goods such as machines and structures, that aid later productive processes.

Capitalism in contrast, would be a system in which the "means of production" is owned privately and considered "private property". Private property rights are paramount to the maintenance of this system for obvious reasons. Capital, which is the surplus production of the economy, is accumulated and distributed. This is done by "market forces", which in theory are simply the forces caused the supply and demand of the products that are consumed and produced by the Society. Each individual, by their purchases, determines the direction of the economy, what areas will grow, what will falter. Free competition provides the incentive and helps govern the distribution of goods, labor and capital.

Capital or surplus is also produced in a Socialist economy that is existing above the level of basic sustenance; the economy is producing above the basic needs of the people. Since the "means of production" is owned by the State, the State must also decide who is awarded this surplus, it must determined where this surplus is distributed. The fundamental way this is done in the Capitalistic system is thru pricing and value. Pricing is somewhat more difficult in the Socialist system as the "pricing" of the "means of production", for instance land costs, can be arbitrary. This cost is the basis of all subsequent costs in the production process, so all pricing is determined by this initial price which must be determined by its owner, the State.

The land issue is of utmost importance to both systems. The Socialist premise is that land can not be justly distributed by private

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