Advantages And Disadvantages Of Socialist Economy

Ideologically, the socialist state is portrayed as a figure that supports citizens’ interest equally and is open and comprehensive towards their needs. Individuals can trust in making the best decisions in everybody’s interests. The government makes it its goal to carry out socialist values and makes

The rise of capitalism was a driving force in the development of communism. The disparity of wealth, overcrowding of urban centers, undermining of skilled workers and the appalling living and working conditions of the working class have lead to wars and a forming of a socialist or communist point-of-view.

Socialism is a form of a command economy where the government decides what goods are to be sold, how to produce the goods, who has access to the goods, and who owns and controls the factors of production. Some examples of socialism today would be France, Sweden, and India (Pride 17).

A Capitalist Economy vs Socialist Economy There are a variety of economic systems today, which can influence how prosperous we will be as individuals or as a group. Socialism is an economic system where the government will be greatly involved in the economy. In a socialist economy the government can control many industries, provide public institutions such as health care and education, and equalize incomes of the population. A socialist economy is one of low unemployment and stability, where the government sets production quotas and price regulation upon their perception of the needs of the economy.

There is a vast difference between the economic systems of capitalism and socialism. While both are ways to govern a country’s market, they vary tremendously when looked at in depth. Capitalism is more effective and it encourages business growth and economic risk.

“From each according to ability, to each according to his contribution”, is socialism’s slogan. Socialism is a social and economic system characterized by common ownership, democratic control, and production for use only. Common ownership means that the resources of the world are owned by everyone thus, nobody can take control of resources beyond their personal belongings. The concept of democratic control means that everybody in a society has the right to participate in the social decisions that affect them. Production under socialism is directly and entirely for use. For example, everyone receives their share of production based on how much they have contributed. After a percent of their share is deducted to go to the common good, workers receive their share of production. Examples of common good is transportation and education, but common good is also used to help those who cannot directly play a part in production like elderly people or children. Socialism works under the assumption that everyone is willing to

“Socialism is a system or theory in which the government owns and controls the means of production (as factories) and distribution of goods.” (Arnold, 2016). Some people would prefer a socialist country as they have a say in what happens to the productivity and economic decisions. Countries that live in such a society have the advantages of elimination of unemployment as well as economic equality (relating to taxes and welfare). During the ‘Great Depression’ in the early Thirties, when all countries of the world were under the grip of depression and unemployment, Russia was markedly unaffected by the worldwide depression; the reason being the socialistic type of economy which protected against business end economic instability. (kudya, 2017) a socialist country has some disadvantages along with their merits, a few examples are the loss of efficiency and productivity securing labor efficiency is difficult in socialistic country workers don’t get paid by productivity, in fact, everyone gets paid the same income so why would a labourer

It is the economic system used by a government that regulates only certain businesses for the welfare of the citizens. The government normally only regulates housing, education, food, and medical issues. Since that is all the government regulates, private citizens are allowed to own businesses. However, the income of these businesses is controlled thru taxes. The strength of socialism is that the government has more control over businesses and can regulate what happens in them. The weakness is that people interested in owning a business in the area of housing, education, food, or medical issues cannot. All the three economic systems are different in unique ways.

However, believers in socialism would completely disagree with this ideal. Socialism is the economic system in which the workers, instead of a rich minority of entrepreneurs, own all industry. Workers receive the full fruits of their labors instead of being given miniscule compensation for backbreaking labor. Since the people are paid well for their work, work becomes a cooperative entity where people come to rely on one another and people actually are more inclined to do their fair share to help the advancement of society as a whole.

Although socialism may have better benefits, capitalism has it perks as well. Such as producers and consumers being able to own their own business. The upside of this is that no one other than the government can take the business away from the owner. This results in more rights for the owner. An example of improved rights of the owner could include the owner making their own regulations, deciding wages for employees, choosing how to insure their business, etc. Now the big picture that this focuses greater upon is that it greatly promotes self-interest, rather than government control.

Socialism is defined as a centrally planned economy in which the government controls all means of production. Basically, the government is in control of all business in the country that adopts it as an economic strategy, in our case, The United States of America. Now when we dissect this idea of socialism we find that there are to thought processes behind it. Some truly believe that socialism could truly be the answer to the problems of our nation, both economically and morally. These people try to push socialist policies in hopes of helping the nation and they are doing so with the purest of intentions. However, there are also the people who completely understand what socialism leads to, and want nothing more than to gain while others

Socialism is criticized for its lack of private property. A central power owns and distributes all goods, so individuals do not have any items to claim as their own. Therefore, individuals may lose or be deprived of certain goods simply if the state sees fit, and this total dependence creates criticism of a socialist rule.

As mentions before socialism is the doctrine that espouses public ownership or control of a major means of production. It aims to achieve an equitable and efficient distribution of social goods and greater economic planning then exist under capitalism. Although the central concerns of socialism appears to be economic its ramifications extend to the moral, social and political realms, in fact together with nationalism, it is the leading ideological and political movement of the 20th century.

Accordingly, one idea or fact that is often raised to differentiate socialism from communism is that socialism in general is the political movement that refers to an economic system in that they believe that the state should be in charge of all important producing industries thus taking hold of the control of free market in order to promote economic parity and egalitarianism. Theoretically, socialism seeks to distribute wealth equally among its citizens in a way that the rich don’t take

In seeking to highlight the key differences between socialism and capitalism, it would be prudent to first offer a concise definition of the two terms. Capitalism in the words of Brinkerhoff, White, Ortega, and Weitz (2007) "is the economic system in which most wealth (land, capital, and labor) is private property, to be used by its owners to maximize their own gain." As the authors in this case further point out, this particular economic system is largely founded on competition. Socialism on the other hand is defined as "an economic structure in which productive tools are owned and managed by the workers and used for the collective good" (Brinkerhoff et al., 2007). From the definitions, it is clear that unlike capitalism, socialism favors a situation whereby there is deliberate control as well as planning of economic activities on behalf of the entire community. In the case of capitalism, no attempt is made to have economic activities controlled from a central point on behalf of the community. Here, enterprises are allowed to compete in the supply of goods and services as they seek to rake in monetary returns. The key