Disadvantages of Capitalism

1. 
   There is unequal distribution of resources or wealth i.e., the division of the society into the have and the have not
   
2. 
   There is constant antagonism or feud between the employees (proletariat or workers) and the employers (bourgeoisie or capitalists)
   
3. 
   The system is usually characterized by high level of unemployment and job insecurity which may eventually increase crime rate in the state.
   
4. 
   The unhealthy competition among competing firms and industries can bring about confusion and waste of resources.
   
5. 
   The profit maximization motive of the capitalist seems to erode the principle of morality since people can adopt different means to achieve their selfish desires.
   

Socialism is an economic and political system in which the means of production, distribution of goods and services and management of land and capital are controlled by the state for the people i.e., the state under the system to the sole employer of all workers. Socialism is very much like communism but the main difference in socialist state is that the government does not entirely own the means of production and distribution, rather it makes allowances for private enterprise but above all, aims at providing maximum social services i.e., free education, free medical care and affordable houses for the citizens

Karl Marx, the originator of socialism believed that the working class in his time was suffering under the wealthy who owned most of the lands and resources available in the state. He envisages a revolution in which the working class and the poor in the society would overthrow the wealthy and would organize the society in such a way that all the means of production (land, property, capital, etc.) would be owned and controlled by the state.