L 'socialist economy è pianificata ; ciò significa che la proprietà privata è abolita (o quantomeno, fortemente limitata) ed è lo Stato a stabilire la quantità da produrre e i relativi prezzi. Ad esempio nell'Ex-Unione Sovietica il prezzo del pane era tenuto artificialmente basso (cioè, non riusciva a coprire i costi di produzione) in quanto questo bene era considerato di prima necessità. Lo Stato insomma decideva, secondo logiche che potevano anche non seguire criteri economici, quanto, cosa e a quale prezzo produrre.
L' economia capitalista è il sistema economico affermatosi in Occidente e poi nel resto the world after the industrial revolution, replacing the previous feudal economy.
In this system are the fundamental concepts of private property and freedom of economic initiative . The capitalist economy is _amorale_ (as opposed to immoral), in the sense that, at least in theory, it works without regard to ethical issues (moral, to be precise), or policies. Returning to the example of bread in a capitalist economy there is a price too high or too low in absolute terms, as the price is set by the market and related supply and demand, the baker does not produce, say, X loaves of bread a day at the Y because the price corresponding to the needs of his district (or so because he was told by the state), but because doing so can maximize (make the highest possible) their profits. If, say, there were not enough bakeries, the State could not compel someone to make bread, but probably some, attracted by the prospect of handsome profits, would open a new bakery. In theory (but only in theory), a baker if you stray (ie, sets too high a price for the market), consumers will source somewhere else, so punishing the sly.
Obviously what you have just described is the situation in case of perfect markets (which do not exist), but the reality may be very different: for example, there are few bakeries around than the demand, many would like to make bread, but the cost to open a bakery is too high for most people, so that the offer is not in balance with demand.
To combat the so-called "market failures", modern states have introduced some regulatory and supervisory in various fields, as well as claim itself, sometimes exclusively, some activities considered essential (health, education, pensions, etc.), nevertheless, the principle of private property and freedom of economic initiative is never less.
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