Socialism


Socialism
Concept
            Socialism is an economic system has emerged to overcome the drawbacks found in capitalism. Socialist system established first in erstwhile Russia after the Bolshevik Revolution in 1917. Karl Marx and Engels visualized the socialist system in which there would not be private means of production. This system emphasizes on maximising the social benefits rather than private benefits. 
            In the words of H.D Dickinson ‘Socialism is an economic organisation of society in which the material means of production are owned by the whole community and utilised according to a general economic plan. All members being entitled to benefit from the results of such socialized planned production of the basis of equal rights.’
            Socialism is a socio-economic system in which all the means of production are owned by the public authority or the community and operate not for profit, but for the services of the community.
Salient features of Socialism
  1. All the means of production and distribution are owned and operated by the State.
  2. Private business is not permitted to exist.
  3. It is the responsibility of the State to give employment to the people.
  4. Central Planning system plays a predominant role in the economic activities.
  5. All the social services like education, medical care, infrastructure facilities get top priority and become the responsibility of the State.
  6. Remuneration is made on the basis of each according to his ability and needs.
  7. Entire profit goes to the State as the State runs the entire business.
Advantages of Socialism
  1. Equal distribution of wealth to the people brings egalitarian social order. This paves the way for equality in the society.
  2. There would be no class conflict in the system.
  3. This system provides equal opportunity of employment to all.
  4. Due to the central planning, everything is done according to the central plan as a result waste is highly minimized.  Everything is done on target oriented.
  5. Concern for community is the prime importance. Education, medical care and other welfare activities are assigned to top priority.
  6. The resources allocation is more rational and efficient. It is done on the basis of social priorities, not on the basis of whims and wishes of individuals.
Disadvantages of Socialism
  1. There is no incentive for hard working to employees and intellectuals.  This results in reluctance among the intellectuals and it leads to economic problems.
  2. As production and other economic activities are carried on according to the standard plans. The creative ideas of people may not be given shape.
  3. People are provided with limited variety of goods because of the absence of competition.
  4. There is always an element of suppression of human being by the State as it gives economic and social measures. This results in frustration among human beings.


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