Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources. Disadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.The biggest disadvantage of socialism however, is that it relies on the cooperative nature of humans to work. Capitalism harnesses this "Greed is good" drive. This does create a rich vs poor disparity but the rich sector does pull the middle sector up with it.

I am free, no matter what rules surround me. If I find them tolerable, I tolerate them; if I find them too obnoxious, I break them. I am free because I know that I alone am morally responsible for everything I do. So, Socialism? Communism? Capitalism? An unhappy rich man isn't as rich as a happy poor man. I'm a happy poor man.