Merits and Demerits of Socialism

Merits of Socialism:

(i) It eliminates exploitationTo use someone or something unfairly for your own advantage. More and consumers’ lack of choice.

(ii) Antagonism and industrial disharmony are prevented as the condition of service of workers is determined by the state.

(iii) Everybody is equal as there is equitable distribution of resources.

(iv) SocietyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More is not stratified. It reduces the gap between the rich and the poor.

(v) It prevents the existence of unhealthy competition and rivalry among producers.

(vi) Sharp practices, large-scale fraud, and cheating that breeds corruption are curtailed.

(vii) There is job security as the fear of undue loss of job due to market force is absent.

(viii) The essence of enterprising is to promote the welfare of citizens.

Demerits of Socialism:

(i) Socialism may lead to inefficiency as they all work for the government. They may not put in their best.

(ii) It may kill confraternity and private initiative due to strict adherence to routine.

(iii) There may be poor quality and inferior goods due to the absence of competition.

(iv) As the government centrally plans and controls the economy, economic growth and development are slow.

(v) The government will be dictatorial and repressive as only one party exists.

(vi) Opposition and criticisms may not be tolerated.

(vii) Due to the existence of a monopoly, the people may not have choices/alternatives.

(viii) It is undemocratic even under democratic socialism as democratic principles are not respected e.g. existence of a one-party system.