Definition of Socialism
Socialism is an economic system in which there is public ownership (government) of means of production. It Is a system where a decision on what, how, and for whom to produce are centrally planned. Some refer to socialism as a Marxist economy which is operating according to the doctrine of Karl Marx. One of the countries that practice this system is the Former USSR.
Types of socialism
- Market Socialism
- Command Socialism
Features or Characteristics
1. State ownership and resources management: The total means of production are controlled and managed by the state.
2. Absence of private participation in the state.
3. Equitable Distribution of the National Income: In this type of economic system, income is evenly distributed to some extent.
4. There is an absence of exploitation of the working-class and consumers in the socialist system.
5. No profit motive: The production is to satisfy the people. The working class is rather interested in the work’s progress while the state is interested in the further satisfaction of the people’s growing material and cultural requirements. The major aim of production is for the welfare of the citizens, i.e. welfarism.
6. All economic activities are centrally planned in the system
7. Absence of class struggle since there are no classes
8. Cooperation and mutual assistance: There is cooperation and mutual assistance among workers.
9. Socialist Emulation: The working people assist those who lack behind and make them advance to the level of leading workers
Advantages of socialism
1. There is no exploitation
2. It bridges the gap between the majority (rich) and minority (poor)
3. There are equal opportunities in the distribution of income
4. Low cost of living
5. Level of unemployment is reduced to the minimum.
6. It discourages an increase in social vices like stealing, misappropriation, robbery, etc.
1. It may lead to laziness among the people due to the fact the government provides essential facilities.
2. It discourages private ownership
3. State monopoly is the order of the day
4. It discourages specialization
5. There is lack of competition in the area of economic activities