Socialism is the political ideology in which the wealth of a society is controlled by the community. In practice, the wealth is usually controlled by intermediaries such as a government who act on behalf of the communities that elect them. Socialism is characterised by the redistribution of wealth from the rich to the poor, increasing equality. Communism is where equality is achieved; it is a classless society based on a common ownership of the means of production.

By contrast to Communism, Capitalism defines an economic system in which people are free to produce, trade and obtain private ownership of property. Capitalism therefore maximises the extent to which people can be selfish. The Socialist philosopher Karl Marx pointed out that Capitalism can lead to the exploitation of workers; this can be seen in countries such as India, where many people work long hours to earn a survival wage in sweat shops to produce consumer products for Western countries. Marx advocated the removal of class divisions, economic inequalities and unequal life-chances, and defined the ideal goal to be the fulfillment of human needs, such as satisfying work and a fair share of the product.

Communism has very negative associations in Western countries due to the Cold War with Russia, and the human rights abuses in China. One major drawback of Communism is that individual freedom often has to be restricted to maintain equality. Historically, Communist states have had a tendency to become dictatorial.

Capitalism allows people to act more selfishly, so this system gives more individual freedom than Communism; the suffering of Indian sweat shop workers is due to exploitation and economic oppression (selfishness) rather than an intentional restriction to their freedom. A society in which people love their neighbour as themselves should entail the benefits of equality that Communism provides, along with the benefits of freedom that Capitalism provides, while at the same time avoiding the exploitation of workers that can be observed in a Capitalist society.