What is the main characteristic of capitalism compared to socialism?

The main characteristic of capitalism that distinguishes it from socialism is private ownership. In capitalist systems, individuals and businesses have the right to own and control property and resources. This ownership enables them to operate businesses, make profits, and accumulate wealth as per market dynamics. The emphasis on private property fosters competition and innovation, as individuals or corporations strive to improve their products and services to gain a competitive edge.

Socialism, in contrast, advocates for collective or state ownership of the means of production, meaning the resources and businesses are owned and managed by the community as a whole or the government. This fundamentally different approach aims to reduce inequalities and distribute resources more equitably among the population, which is why private ownership stands out as the defining feature of capitalism.