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, production and distribution of goods. This contrasts with capitalism where free markets predonimate and property is privately owned. Socielism tends to favor cooperation whereas capitalism is characterized by competition. A Socialist economy is basically an economy that is followed in China as well as Vietnam.
This economy is characterized as industries owned by state entities. However, the government does not routinely intervene in the setting price. It combines substantial state ownership of large industries within the private sector. It supplements the centrally planned economy Socialism is an economic and political theory based on public or common ownership and cooperative management of the means of production and allocation of resources.
In a socialist economic system, production is carried out by a public association of producers to directly produce use-values (instead of exchangevalues), through coordinated planning of investment decisions, distribution of surplus, and the use of the means of production. Socialism is a set of social and economic arrangements based on a post-monetary system of calculation, such as labour time, energy units or calculation-in-kind; at least for the factors of production. Socialism is a political and economic system in which most forms of economically valuable property and resources are owned or controlled by the public or the state. The term socialism also refers to any political or philosophical doctrine that advocates such a system. In a strictly socialist economy, public agencies influence-and in some cases actually decide-what kinds of goods and services are produced, how much they cost, the wages or salaries paid to people in different professions, and how much wealth a single individual may accumulate. Most socialist systems also provide citizens with significant social benefits, including guaranteed employment or unemployment insurance and free or heavily subsidized health care, child care, and education. Socialism is the major alternative to capitalism, a system in which most property is privately owned (by individuals or businesses) and the production of goods and services, as well as the distribution of income and wealth, are largely determined by the operation of free markets.
Socialism—defined as a centrally planned economy in which the government controls all means of production—was the tragic failure of the twentieth century. Born of a commitment to remedy the economic and moral defects of capitalism, it has far surpassed capitalism in both economic malfunction and moral cruelty. Yet the idea and the ideal of socialism linger on. Whether socialism in some form will eventually return as a major organizing force in human affairs is unknown, but no one can accurately appraise its prospects who has not taken into account the dramatic story of its rise and fall Socialist economics is a term which refers in its descriptive sense to the economic effects of nations with large state sectors where the government directs the kind and nature of production. In a normative sense, it applies to economic theories which advance the idea that socialism is both the most equitable and most socially serviceable form of economic arrangement for the realization of human potentialities.
There has developed a diverse array of ideas that have been referred to as "socialist economics," from forms of "market socialism," which advocate achieving economic justice through taxation and redistribution through state welfare programs to the hardcore communists who advocate total state control of all property and the economy, to the unique Chinese variation known as "socialism with Chinese characteristics."
However, particularly when featuring a planned economy, attempts to put socialist economics into practice have failed. Many critiques of socialist economics warned of this. Some noted the impossibility of knowing the economic data necessary to have total control over an economy, finding it impossible to replace the "invisible hand" that Adam Smith regarded as guiding free market economies. Placing production goals above consumer leads to failure, as does removing all motivation by taking total control over the economic system. Critics of socialist economics argue that human beings are beings of free will and their success in any endeavor comes from their free pursuit of desires and the fulfillment of their individual potentials. No centralized system run by a distant government, even if well-meaning, can take into account the diversity of needs and contributions of all people; it is this diversity that makes human society human. Prosperity and happiness for all can only, critics maintain, come when each individual is regarded as a unique and valuable member of society. Socialist economics, despite aiming to care for all people and provide fair distribution of wealth, lacks sufficient understanding of human nature to establish a society that can succeed in doing so.
Socialist economics is a broad, and mostly controversial, term. Generally, however, most theoretical economists would agree that the definition of a socialist economy is based on four main features:
1. “Public ownership” of the decisive means of production 2. centralized control of the rate of accumulation 3. The existence of a market for consumer goods and for labor (a wages system) 4. Managed pricing (Nove and Nuti 1972)
Altogether, socialist economics, as these four features suggest, is characterized by large scale central planning of all possible types and quantities of consumer goods and machinery for their production (with a price system attached) and their quantitative regional allocation. Socialist economics also plans the qualitative and regional distribution of labor and the appropriate wage system. To be competitive with Western free market systems, it has to plan for technical and technological innovation and quality of products that are to be in demand.
Also, the four principles clearly define a necessary political condition for a socialist economics to become a workable reality in any society’s history: A non-democratic authoritarian or totalitarian regime of one party that can change the constitution to legally anchor all the above elements. Without such authority, centralized control by government of the economy cannot be achieved
ocialism was a term invented (stolen) in 1905 at half three in the morning by the punk rocker Karl Marx from homosexual French and British intellectuals of the likes of Henri de Sain Simon. The original socialist position was that man should apply rational planning to the economic aspect of society, on
behalf of the state, for the benefit of everyone/society/the nation/insert any group here. Marx later bastardized the term to mean that a dictator of the proletarian peoples should rule, which means that the most uneducated and worthless class (the slave workers) should control the economy through the workers state (or the dictator of the proletarians, who knows better than the others). Marx was apparently seen downloading vodka porn with several notable drinking buddies, including Vladimir Nabokov, who was looking to pick up "biatches n hoes" as the official Socialist history states. (This event is memorialised in the Marx's introduction to 'The Communist Manifesto', which stated, 'Even in the dead of Russian winter, the young totty goes out in short skirts and little dresses. You've got to love it.') By 10p.m., the bar had been drunk dry. Enraged, Marx smashed an empty bottle on the table and used it to threaten the barman, asking, 'O, callous defender of the liquor, lined-face keeper of the drop, where art our divine liquid?' Marx always talked a bit like that when he was wasted, so it's easy to see which bits of the Manifesto were written under the influence. Because of this fact, some say socialism is evil because it gave birth to communism (as well as social democracy, the social market, welfare, economic planning, nazism, gulags, technocracy, more human rights, communist parties, workers and consumer rights and economic liberty).
In the Western World socialism is promoted by intellectuals, scientists and wannabe hippies who believe that they (the intellectuals) are smarter and thus should control the state, which should direct economic activity in a rational manner. The opposite of socialism is capitalism, which is promoted by businesspeople, corporations, spoiled brats and libertarian nutjobs who believe they are the most capable to run and direct society on behalf of the capitalist market, because the freedom for corporations to do as they please and the quest for profit will result in the most rational society.
There is great debate amongst socialists as to what the hell their system is, which version is right and who the real socialists are. The revolutionaries want to lynch all the capitalists, for example. The evolutionary/reformist socialists want society to evolve from capitalism to socialism. The democratic socialists want to do it through party politics. The Marxists want the uneducated masses of slave workers to rise up and establish the dictator of the proletarians. The libertarian socialists like Noam Chomsky hate the state and the capitalists, while socialists just hate the capitalist businesses and capitalists just hate the state/socialists. The modern Chinese believe that capitalism is the best form of socialism with Chinese characteristics. Oh, and the National Socialists believe the road to socialism is to kill all the Jews,
while the Jews themselves believe the kibbutz is the best form of socialism.
(Well to start I would basically like to state the fact that socialism is communism for great men) A transcription of a famous (though poor for laughs) memo by Lenin reads: 'Socialism is the only way of securing human happiness. The guiding principle of socialism is that death, war, famine, environmental disaster and the possibility of a Ricky Martin comeback are bad things and products of capitalism, which must be overthrown. An enlightened person can easily see that this is true beyond a doubt, and that beards, choirs, the Dictatorship of the Proletariat, police state, folk music and massive executions are the solution.'
It turned out that this guy, attempting to profit from organisational chaos caused by losses in the Russo-Japano-Sino-Chino-Wino-Dino war, had purchased five crates of vodka to sell on at inflated prices. The angry Marx formulated the communist doctrine on the spot. Marx later refined his theory into what eventually became Super Socialism.
features of socialist economy
The main means of production - the large factories, mines, forests, big farms, offices, banks, transport systems, media, communications, big shopping chains will be taken into owner-ship by the new workers' state. Private ownership of large enterprises will end. The property of working people, the middle class and even medium sized capitalists will be left alone.
The economy will be planned to serve human needs rather than simply profit and luxury consumption by the rich. This will release the productive capacity of the economy from the limitations of profit maximisation. A great expansion in useful production and the wealth of society will become useful.
Rational planning will replace anarchy. Coordination and planning of the broad outlines of production by public agencies will aim at building an economy that will be stable, benefit the people and steadily advance.
Redirecting the productive capacity to human needs will require a variety of economic methods and experiments. There could be a combination of central planning, local coordination, strict price control or use of the market mechanism to set prices. Various policies might be used with changing conditions. But no matter what means are chosen, a socialist economy must uphold the basic principles of social ownership, production for the people's needs, and the elimination of exploitation.
Factories and other productive facilities will be modernised to eliminate backbreaking labour and ecological damage. Regional disparities will be addressed. No longer will Auckland mushroom while the South Island stagnates. Productivity gains will be used to shorten the working day and improve living standards, rather than create unemployment. Construction of housing, schools, medical, cultural and sporting facilities for working people will be a priority.
With socialism, goods and services will be distributed on the basis of from each according to their ability, to each according to their work. No longer will monopolists, landlords and speculators live off the labour of others. Every person will get the opportunity to contribute to society as much as they are able. Those who work more will receive more income. Those who retired or are unable to work would be supported from the social fund, while encouraging them to contribute what they can to socialist construction.
Transforming the main productive enterprises from private to social ownership will allow workers to manage democratically their own work places through workers' councils and elected administrators, in place of the myriad of supervisors and consultants today. In this way workers will be able to make their work places safe and efficient places that can serve their own interests as well as society's. Small owners, like farmers, fishing people and small retailers will be encouraged to form cooperatives and work together to raise their standard of living and improve efficiency.
Command Economy: CentralPlanning and strict Bureaucracy is the main feature of Socialistic Economy. It directs all Political and Social Activities.
Limited Role of Market.
Generally the Market is determined by Demand and Supply and here as the Government decides the production allocation of resources it is having minimum role to play.
No private ownership of property or factors of production. The government is the owner of all properties. Only a little Private property is allowed and no property rights, hereditary rights.
Central Planning. The main feature of Socialism is central planning which decides the basic problems like a) what to produce? B) How to produce? C) For whom to produce? The Central Planning committee sets the goals for the economy and also he time frame within these goals are to be realized.
Social Security and welfare: In a Socialistic Economy the government decides all economic decisions and sets the goal of the economic welfare and security of weaker sections of society and aged people.
merits and demerits of socialist economy Merits of Socialist Economy
Merits of Socialist Economy
1. Efficient use of resources: The resources are utilized efficiently to
produce socially useful goods without taking the profit margin into
account. Production is increased by avoiding wastes of
2. Economic Stability: Economy is free from business fluctuations.
Government plans well and everything is well coordinated to avoid
over-production or unemployment. There is stability because the
production and consumption of goods and services are well
3. Maximisation of Social Welfare: All citizens work for the welfare
of the State. Everybody receives his or her remuneration. The
State concentrates on the production of basic necessaries instead
of luxury goods. The State provides free education, cheap and
congenial housing, public health amenities and social security for
4. Absence of Monopoly: The elements of corporation and monopoly
are eliminated since there is absence of private ownership. The
state is a monopoly but produces quality goods at reasonable price.
5. Basic needs are met: In socialist economies, basic human needs
like water, education, health, social security, etc, are provided.
Human development is more in socialist countries.
6. No extreme inequality: As social welfare is the ultimate goal, there
is no concentration of wealth. Extreme inequality is prevented in
Demerits of Socialism
1. Bureaucratic Expansion: A socialist economy is operated under a
centralized command and control system. People here work out
of fear of higher authorities. It does not give any initiative for the
people to work hard.
2. No Freedom: There is no freedom of occupation. Allocation of
factors of production is not done rationally. Jobs are provided by
the State. Place of work is also provided by the State. The
consumer's choice is very limited.
3. Absence of Technology: Work is monotonous and no freedom is
given. Any change in the production process will alter the entire
plan. Hence any innovation cannot be easily enforced. Everything
is rigid and technological changes are limited.
4. Absence of competition makes the system inefficient.
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