Capitalism vs Corporatism: Difference and Comparison

Rules and regulations related to private properties and other private things have been created. These rules and laws guide people about their authority and other rights related to their private property.

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.

Key Takeaways

  1. Capitalism is an economic system in which individuals and businesses own and control the means of production and distribution of goods and services. At the same time, corporatism is a political and economic system in which government, labor, and business interests collaborate to create economic policies.
  2. Capitalism emphasizes individual economic freedom and competition, while corporatism emphasizes collaboration and cooperation among different sectors of society.
  3. Capitalism produces economic inequality, while corporatism promotes greater economic equality through cooperation and collaboration.

Capitalism vs Corporatism

Capitalism is an economic system characterized by private ownership of the means of production and distribution of goods and services, with the aim of generating profits. Corporatism is a system where large corporations hold significant power and influence over government policies and regulations.

Capitalism vs Corporatism

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.


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Corporatism, on the other hand, works for public benefit or social benefit. These types of institutions or organizations work under government rules and regulations.

Comparison Table

Parameters of ComparisonCapitalismCorporatism
DefinitionCapitalism 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.
LiabilityIn Capitalism individual has full liability related to anything.In Corporatism, there is only limited liability given to organizations or institutions.
Exchange typeThere is a voluntary exchange or free exchange without any force.There is an involuntary exchange, and taxes are taken by the government.
Market typeThe market here is more competitive in nature as there is no imposition by the government. The market here is dominated and has less competition.
SponsorshipsThe companies or institutions are independent in nature because an individual has all the rights.The funding or sponsorship is done by the government organizations.
OwnershipIn 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, institutions, etc.

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.

Capitalism also creates inequality because only one has full rights. And also, in Capitalism, a voluntary exchange takes place in which sellers and buyers are free from any force during any transaction of money or profit.


What is Corporatism?

Corporatism is connected with social benefits. The market in Corporatism has not had 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 in Corporatism is an involuntary exchange, meaning that government rules and regulations are followed instead of individual authority.

Corporatism-related businesses or institutions work under government rules, and half of the authority is given to the government. The profit or benefit is for that area’s people or the public.


Main Differences Between Capitalism and Corporatism

  1. 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.
  2. In Corporatism, an involuntary exchange takes place, and the government takes taxes. While in Capitalism, there is a voluntary exchange or free exchange without any force.
Difference Between Capitalism and Corporatism

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