Socialism

What is Socialism?

Socialism is an economic system, in which government owns major sources of production – factors, machinery, and equipment. Under this system, individuals may own small capital goods. Some refer to socialism as a Marxist economy, operating according to the doctrine of Karl Marx.

Answers to the Basic Economic Problems under the Socialist System are:

1. The government, or the state, takes decisions on what goods to be produced, with the available resources.

2. The state determines how these goods and services are produced through its planning agencies.

3. The government determines the allocation of produced goods and services, on the basis of one’s work.