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Difference between Capitalism and Corporatism

Difference between Capitalism and Corporatism

The two systems of economics, capitalism, and corporatism, are vastly different. Capitalism is a system where the means of production are privately owned and operated for profit, while corporatism is a system where businesses are controlled by the state. In capitalism, competition is essential for economic growth, while in corporatism, businesses are often granted special privileges and protection by the government.

There is much debate over which system is better, but it ultimately depends on your point of view. Some people believe that capitalism leads to innovation and prosperity, while others believe that corporatism provides more stability and benefits the people as a whole. Ultimately, only time will tell which system is superior.

What is Capitalism?

Capitalism is an economic and political system in which private individuals own the means of production, such as factories and land, and are free to produce goods and services to make a profit. The government does not intervene in the economy, except to protect private property rights. Capitalism is based on the principle of laissez-faire, or hands-off government, which means that businesses are allowed to operate without government interference. The free market sets prices for goods and services and determines who produces what.

In a capitalist economy, people work for private companies, instead of the government. They earn wages and can use their money to buy goods and services from businesses. Capitalism has helped to create economic growth and prosperity in many countries around the world. However, it has also been criticized for creating economic inequality between rich and poor people.

What is Corporatism?

Corporatism is an economic and political system in which businesses and industries are organized into groups, or “corporations”, with each group having influence over the government. The government, in turn, gives preferential treatment to these corporations, granting them special privileges and laws that protect their interests.

Corporations are typically large and powerful, and they use their influence to further their own agenda, rather than the public good. This can lead to corruption and cronyism, as well as a loss of individual rights and liberties. Corporatism is often criticized for giving too much power to corporations and special interests, and for its lack of democracy.

Difference between Capitalism and Corporatism

Capitalism and Corporatism are two economic systems that are often confused with one another. Capitalism is an economic system based on private ownership of the means of production and distribution of goods, while corporatism is an economic system in which the government gives special privileges to business corporations. While both capitalism and corporatism have their own strengths and weaknesses, there are some key differences between the two.

Capitalism tends to promote competition and innovation, while corporatism can lead to cronyism and corruption. Capitalism also relies on the free market to allocate resources, while corporatism gives the government more control over the economy. As a result, each system has its own unique advantages and disadvantages that should be considered before choosing an economic system.


The definition of capitalism is an economic and political system in which a country’s a trade and industry are controlled by private owners for profit. Corporatism is a politico-economic system where the state intervenes in the economy to protect the interests of capitalists. There are key differences between capitalism and corporatism, including how power is distributed, who benefits from the economic system, and how decisions about the economy are made. It’s important to understand these distinctions when looking at countries around the world and their approach to economics.

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