In which economic system is competition primarily encouraged, potentially leading to economic inequality, as opposed to the emphasis on economic equality?

Capitalism is the economic system where competition is primarily encouraged. In capitalism, businesses and individuals are free to make their own choices about what to produce and sell. This competition can lead to innovation and growth, but it can also create economic inequality because some people or companies become much richer than others. For example, a successful tech company might generate huge profits, while smaller businesses struggle to compete. In contrast, socialism focuses on promoting economic equality by distributing resources more evenly among people, reducing the gaps between the rich and the poor.