What exactly are socialism, capitalism and democracy? Socialism, whether of the socialist, fascist or communist variety, is government ownership or control of business, whereas capitalism is private ownership and control of business. Democracy simply means voting or majority rule.
Socialism is characterized by weak or non-existent property right, high tariffs, high taxes and heavy regulation of business. Capitalism is characterized by strong property rights, free trade, low taxes and light regulation of business.
Socialism and capitalism are opposites. All the countries of the world fall along a continuum from most socialist with unlimited governmental control of the economy to most capitalist with less governmental control of the economy.