I have observed that when Americans debate the relative merits of socialism versus capitalism, the main debates that emerge are: What would happen if we removed the stimulus to innovation and productivity that a free market generates? This involves having a free market that includes individual ownership and control and, to varying degrees, laissez-faire government. • Would it be possible to have a prosperous society in which we would not have 20% of the population living in poverty and without adequate healthcare? , housing or economic security? Fundamentally, we characterize and differentiate capitalism from socialism by how they handle the production (industry), distribution, and exchange (commerce) of wealth and goods. In capitalism, capital (or the “means of production”) is owned, managed, and exchanged for the purpose of generating profits for private owners or shareholders. Capitalism emphasizes individual profit rather than workers or society as a whole. Socialism emphasizes the distribution of profit among society or the workforce to supplement individual wages/salaries (“Capitalism vs. Socialism – Difference and Comparison | Diffen”). Capitalism arose from mercantilism and the end of feudalism, particularly the growth of urban centers and the ability to allow individual property rights. Until the 12th century, less than 5% of the European population lived in cities (Beattie). When it became possible for individuals to own land and for merchants to earn real wages, this encouraged more people to move to cities where they could get money rather than subsistence in exchange for work. Individuals (including both nobles and now merchants) were now able to purchase goods on their own, leading to further growth of industry. The industrial revolution... half of the document... 0 January 2014." Capitalism vs socialism: difference and comparison | Differentiate." Np, nd Web. January 20, 2014. “History of Socialism.” Wikipedia, the free encyclopedia January 20, 2014. Wikipedia. Network. January 20, 2014.Hoyt, Alia. “HowStuffWorks 'Introduction to How Socialism Works.'” HowStuffWorks. N. p., March 12, 2008. Web. January 20, 2014. "John Maynard Keynes." Wikipedia, the free encyclopedia January 18, 2014. Wikipedia. Network. January 20, 2014. Markman, art. “Why are experiences often better purchases than things?” N. p., March 15, 2013. Web. January 20, 2014. Newman, Michael. Socialism: a brief introduction. Oxford University Press, 2005. Print.Peavler, Rosemary. “The Characteristics of Capitalism and Socialism.” About.com Corporate Finance. Np, nd Web. January 20, 2014. Shah, Anup. “The Rise of Multinational Corporations: Global Issues.” Globalissues.org. N. p., 5 December 2002. Web. 20 January. 2014.