Step 1 : Introduction to the question "what is the difference between socialism and capitalism"
...Capitalism, Socialism & Communism : Introduction. Capitalism is an economic and political system in which individuals own economic resources and industry, whereas under socialism, the state plans and produces goods, and either owns or redistributes resources among its citizens.
Step 2 : Answer to the question "what is the difference between socialism and capitalism"
Capitalism encourages innovation and individual goals, Social democracy is a kind of socialism:
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