The difference between liberalism and socialism Essay

The difference between liberalism and socialism - Essay Example Nevertheless, wealth is shared in accordance with the individual’s contribution in the creation of that wealth (Wallerstein 73). This implies that those who involved a lot in the creation of the wealth get more share than those who does not contribute much in the creation of wealth. Socialist ideology also discourages the formation of classes or groups since it does not support competition among individuals (Wallerstein 74). To socialists, everybody in the society is considered equal, meaning that no one is considered superior to others. It is also noted that, in a socialist government, all resources are collectively owned by the people who also determine how the resources are to be utilized for the development of the society. Socialists also believe in equality and, therefore, discourage accumulation of capital in the hands of a few according to Wallerstein (73). China is a good example of a socialist state, which has also practiced the liberal system of government. Germany a nd the U.K. are another classical example of a country that have practiced both socialism and liberalism (Wallerstein 76). Liberalism is a political ideology which believes in the freedom of people in the society (Wallerstein 74). This implies that it is opposed to any restrictions on people in the society. According to liberalists, the state has the power to control all industries with the aim of eliminating malpractices. However, unlike in a socialist system that discourages private ownership of property, liberalists encourage private ownership of property (Wallerstein 75). The liberalist economic system, like a socialist system, is also structured in a manner the ensures fair distribution of national resources to every individual in the society as noted by Wallerstein (75). However, in a liberalist system, the activities of private welfare is regulated by the government or laws aimed at barring them from exploiting their