Question

What is a significant difference between Socialism and Capitalism?

Socialism encourages the private ownership of capital.
The means of production are privately owned under Socialism.
Government or a central authority owns the means of production under Socialism.

Answer 1

capitalism: private property
socialism: government property

capitalism: market determines what gets produced and consumed
socialism: government regulation does

capitalism: long-term economic growth (despite short-term recessions)
socialism: steady stagnation

capitalism: constant technological progress
socialism: copying capitalist technology

Answer 2

Government or a central authority owns the means of production under Socialism.