Rules and regulations have been created related to private properties and other private things. These rules and laws guide people about their authority and other rights related to their private property. Same laws but with different authority have also been created for public properties for the usage of public.
Capitalism and Corporatism are the two terms that illustrate human rights in a private and public manner. Where Capitalism is indulged in the private or personal financial rights of a human being. While Corporatism is a term that illustrates public as well as political equality and their rights.
Capitalism vs Corporatism
The main difference between Capitalism and Corporatism is that Capitalism is a form of socio-economic organisation that is related to personal or private ownerships that deal with production for personal benefit. And the term Corporatism is a political belief which illustrates corporate groups such as the military, business, etc., working for the benefit of society.
Capitalism is only associated with personal rights and benefits. It does not relate anything to the public interest. The person who operates has full ownership or liability over the business or institutions. The benefits which are made by these types of organizations are for personal profit.
Corporatism, on the other hand, works for public benefit or social benefit. These types of institutions or organizations work under government rules and regulations. They have limited authority over the institutes, and half of the funding is done by the state government.
Comparison Table Between Capitalism and Corporatism
| Parameters of Comparison | Capitalism | Corporatism |
| Definition | Capitalism is an economic body related to personal or private ownership that deals with production for personal benefit. | Corporatism is a political belief which illustrates corporate groups such as the military, business, etc, working for the benefit of society. |
| Liability | In Capitalism individual has full liability related to anything. | In Corporatism, there is only limited liability given to organizations or institutions. |
| Exchange type | There is a voluntary exchange or free exchange without any force. | There is an involuntary exchange, and taxes are taken by the government. |
| Market type | The market here is more competitive in nature as there is no imposition by the government. | The market here is dominated and has less competition. |
| Sponsorships | The companies or institutions are independent in nature because an individual has all the rights. | The funding or sponsorship is done by the government organizations. |
| Ownership | In Capitalism, the decisions are independent, and only the owner has all the rights. | In Corporatism, the institutions or companies follow government rules and policies. |
What is Capitalism?
Capitalism is a financial order that is based on personal ownership. The owner here has full authority over his or her business or institutions etc. The work done here has no relation to public benefits or social development. It is simply for personal benefits or profits.
Capitalism characteristics can be concluded as price systems, property, market competitions, etc., the decision making, financial rights, and profit margin are fully set by the owner of the business or institutions. Because of the independent ownership and full authority, the competition in this field is very high.
Capitalism also creates inequality because only one has full rights. And also, in Capitalism, the voluntary exchange takes place in which sellers and buyers are free from any type of force during any transaction of money or profit. The funding or sponsorship done in this is privately done.
What is Corporatism?
Corporatism is connected with social benefits. The market in Corporatism has not much competition as compared to Capitalism because the authority is with the government, and power is only given to one or two organizations or institutions running or operating in the market.
The exchange which takes place in Corporatism is known as an involuntary exchange which means that government rules and regulations are followed instead of individual authority. Many corporations like military, business, agriculture, etc., come under the Corporatism category.
Corporatism-related businesses or institutions work under government rules, and half of the authority is given to the government. The profit or benefit made is for the people or public of that area. Corporatism works like our body parts because every section n has different functions or roles to play in society.
Main Differences Between Capitalism and Corporatism
- Capitalism is an economic body that is related to personal or private ownership that deals with production for personal benefit. On the other hand, Corporatism is a political belief which illustrates corporate groups such as the military, business, etc., working for the benefit of society.
- In Capitalism, the person who operates has full ownership or liability over the business or institutions. While in Corporatism, there is only limited liability given to organizations or institutions.
- In Corporatism, the institutions or companies follow government rules and policies. Whereas in Capitalism, the decisions are independent, and only the owner has all the rights.
- In Capitalism, the market is more competitive in nature as there is no imposition by the government bodies. But in Corporatism, the market is dominated by one or two organizations and has less competition.
- In Corporatism, an involuntary exchange takes place, and taxes are taken by the government. While in Capitalism, there is a voluntary exchange or free exchange without any force.
Conclusion
People should know about their rights both personally and as public. Several policies have been created for the people since the constitution is made to give people what they want. And government sites tell people about their rights to aware them people from any type of fraudulent things. One can protect themselves from any type of fraud by talking to governmental bodies near them or checking out the authorized sites operated by the government.
Corporatism contains those organizations which come under government authority things about the public benefit and are funded by state governments. While in Capitalism, the personal benefit is given more importance, and the profit made is used for personal use. Government has no right in the case of Capitalism, while half of the liability is given to the government in the case of Corporatism.
References
- https://books.google.com/books?hl=en&lr=&id=2HdNDwAAQBAJ&oi=fnd&pg=PR3&dq=capitalism&ots=nsFBFqSj2i&sig=ynnwlGhO0uqDFX3CXwx7Pagg4A8
- https://www.jstor.org/stable/23998635