Some swear by the freedom of profit. Others by the justice of fairness. But in a world where neither is fully achievable, which one are we really willing to fight for? Capitalism and socialism aren’t just economic systems; they’re competing visions, even ideals, of how the world should work, and every choice has consequences. Both promise something alluring: wealth, opportunity, equality, security. In the debate over how we live and who benefits, there are no neutral observers; everyone is at risk, and everyone has an opinion. What’s yours?
When Americans hear “socialism,” it often evokes suspicion, fear, or outright rejection. “Socialism has always had a … very bad name under the U.S. … It’s like, you call someone socialist and that you just don’t believe anything they say. Even though most people don’t even know what socialism is,” stated Nick Chan, a senior and self-identified socialist at Menlo-Atherton High School. In the United States, the term is often tied to an immediate negative connotation, rather than the ideas it represents in practice. Kingston Desuasido ‘27, leader of Sacred Heart’s Current Events Club, stated that frequently when the word socialism is thrown around in America, the real meaning of the term “is nowhere close to all of these things that we’re saying at all” and is thus a “term that’s kind of outdated by our … modern perceptions of what we think it is, and that’s something that we need to realize.”
At its core, socialism emphasizes government involvement in social and economic systems to promote collective welfare. Chan explained, “In socialism, you are paid [for] what you are [and what] your labor produces. Unlike in capitalism, where you are paid based on a wage that your boss decides … socialism is economic democracy.” Instead of leaving resources and industries in private hands, socialism argues that the means of production should be collectively owned or heavily regulated to minimize exploitation and poor working conditions. In practice, that would mean universal healthcare, free or subsidized education, and stronger worker protections.
An alternative system to socialism is capitalism. Capitalism, by contrast, is built on private ownership and voluntary exchange. Individuals and companies own property and compete in open markets, with prices set by supply and demand. The profit motive is central, and supporters argue that this competition breeds innovation, efficiency, and personal freedom. Nick Santore, VP of Commercial Solutions at Intuitive Surgical and a self-proclaimed capitalist, says the main appeal of capitalism is how “Everybody can chart their own path in life.” He continues to say that a common misconception surrounding capitalism is that, “many people have tried … to make it more about the human condition versus the open and free market.” Capitalism focuses on markets and competition, not on shaping society’s values. Chan disagrees with this and calls the values promoted by capitalism a flaw in the system; “You always need another enemy to fight.” As opposed to socialism, where “there’s no scapegoating and there’s no… common enemies.” He continues to say “capitalism thrives on infinite growth. … We always want to grow more, and that is not a sustainable business model because, you know, you can’t grow forever” and thus “in capitalism, we want to exploit the planet.”
While Chan emphasizes capitalism’s flaws, Desuasido points out that we need capitalist competitiveness in a society; “We can’t progress forward as a society if we don’t have dissenting opinions conflicting with each other,” and “ambition drives ambition.” He continues to say, “Our capitalism, just by nature, is … competitive.” Chan points out that this isn’t good, saying it will create monopolies: “what happens at the end of competition is someone wins. So that person who wins will use their power, like their economic power, to make sure that nobody else is able to pop up within that market.”
Another popular belief system is democratic socialism. Democratic socialism tries to bridge the gap between capitalism and socialism. It keeps the democratic, electoral framework of liberal democracies while weaving in socialist policies. In theory, democratic socialism aims to combine the fairness of socialism with the freedoms of a capitalist democracy.
Right now, a self-identified democratic socialist, Zohran Mamdani, is running for New York mayor. Mamdani’s promises to freeze rents, raise taxes, and implement more socialist policies on New York corporations could trigger a New York City business exodus. Fox News reports that many view Mamdani as a “far-left socialist mayor who’s trying to take control of the epicenter of global finance.” However, supporters of Mamdani argue that his policies are not about driving business away, but about making New York more livable for working and middle-class families. The pushback from the media, though, shows how deeply controversial democratic socialism is in the US. Ms. Serene Williams, a teacher of AP United States and Comparative Government, explained how the New York election is a “huge deal because usually you don’t see a mainstream candidate running and associated with Democratic socialism” and in particular “the politics of that are really interesting because a lot of mainstream Democrats are refusing to endorse them.” Mamdani’s campaign is testing whether democratic socialism can move from the political margins into the American mainstream. Desuasido explains that a lot of his policies “are kind of new to the U.S. … Obviously there’s a lot of backlash from what people are saying, just the words socialist is such a stigma for him, but I feel like he’s embracing it and he’s bringing all of these new ideas to New York.”
In the end, some still swear by the freedom of profit. Others by the justice of fairness. But the real question is not which system looks best on paper; it’s which one we are willing to live under, with all of its flaws and trade-offs. Either capitalist, socialist, or social democrat, Santore reminds us, “Today’s economy won’t be the same as the economy 10 years from now.”
