SOCIALISM

BACKGROUND INFORMATION
Socialism is a society where the
The government provides for
population divides supply and controls

productions and manufacturing basic needs including

depending on their needs. Welfare is housing, healthcare

distributed according to everyone’s insurance, and education for

needs, such as how someone with a everyone, allowing greater

house and good job would need less
balance between social
whereas someone paying rent and
hierarchies.
bringing up an infant would need more.

FAIRNESS AND EQUALITY WITHIN

SOCIALSIM
Under a socialist party, government supports citizens who are financially in need by making those citizens who earn

more money required to pay more tax as they can afford it while those with little salary pay a much less percentage of

their salary as tax, and making up for it using the larger tax from financially stable citizens. This way, members of

society don’t necessarily receive equal pay or taxation, but rather make up for those citizens who earn fewer salaries

(regardless of how wealthy they were born or how much effort they put into work) by allowing to tax them less. By

supporting citizens this way, Socialism puts all people at a chance to contribute to the economy through spending

which increases demand and creates a stable flow of the economic cycle.

Lack of incentives Government failure

Despite this seeming ideal, a commonly brought up issue is Since socialist economy is generated

that many citizens will then have little incentive to put effort controlled by the government of the people,

into their work if it would not make a different in their taxes they both hold the power to drastically

causing production quality to decline. Looking past the non- improve and drastically destruct the economy.

competitive market, people can still work harder to become By creating strict restriction for worker wages

promoted and earn greater salary as an incentive as well as or hours could lead to mass unemployment, or

have the risk of becoming fired for poor quality, displaying miss production opportunities from a sudden

how the risk of worse and better economic situations remains high demand from failed allocation of

for socialists as a limit to their incentive. resources.

WORKING LIFE FOR SOCIETY MEMBERS

In socialism, workers have the choice to make decisions collectively

regarding how the company works, as well as how much they can

compensate in specific types of jobs. The aim of this is to allow

workers and to help create a workplace where all needs are met in

terms of fairness.

ECONOMIC FREEDOM
Economic freedom under socialism is somewhat limited due to possible government

requirements on production for companies. However consumers have free right to

purchase whatever they want which affects the requirements set by the government.

Compared to Capitalist societies, the government interference is clearly greatly

reduced which can be both good and bad for the people depending on the situation.

When looking at advertisement, corporations have to spend more money in capitalist

economies to simply promote their product while socialists can save in this area.

B Y G I U L I A A N D L A E T I T I A 9 . 2