Economic Systems

Socialism an economic system in which most or all the needs of the population are met through non-market methods of distribution.

Communism a political ideology of a classless society in which the means of production are shared through state ownership and in which rewards are not tied to productivity but need.

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Very few societies are purely capitalist or purely socialist, although most are more strongly one than the other. The United States, for example, is considered to be a capitalist society, but the Social Security system, which provides support for people who are unable to work, is socialistic. Sweden is considered by some people to be a socialist country because of its high tax rate and large welfare system, but the majority of industry in the nation is in private hands, which is capitalistic.