There are various schools of thought that govern the manner in which different economies are run around the world. An economy may be formal where it is driven by the market or government or informal where it runs without formal policies and regulations. Capitalism and socialism are two economic perspectives which delve on the different models of economic management and distribution of wealth in the society. Capitalists root for free marketing in establishing economic winners and losers, arguing that the role and extent of government involvement in the state’s economy should be limited (Schumpeter 123, Part II). On the contrary, socialists believe in economic equality arguing that the government should play a central role in ensuring equity in distribution of economic resources in the society.