What is the fundamental distinction between capitalism and socialism?

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Capitalism takes advantage of laborers, whereas socialism takes advantage of property holders.Capitalism depends on market forces for economic decisions, while socialism employs centralized planning.Capitalism expands through rent-seeking activities, whereas socialism grows under government control.Capitalism bases choices on consumer preferences, while socialism focuses on producer interests.

Explanation

The key difference lies in decision-making: capitalism uses market mechanisms to guide economic choices, whereas socialism relies on a centrally planned system.