Socialism includes the collective ownership of the means of production, central planning of the economy, and the emphasis on
equality and economic security
with the goal of reducing class distinctions.
Some states are capitalistic, but countries like
Norway, Sweden, Denmark, Iceland, and Finland
follow socialism strictly. They are purely socialistic countries. These five Nordic countries are examples of the Socialist Economy. They distribute the income equally according to their hard work and contribution.
What are the three main goals of a socialist economic system?
A planned economy, greater equality, and ownership of income-producing property by the state
rather than private parties.
There is a very common myth about socialism, which says that socialism would give everyone the same wage, and therefore no one would have a reason to work hard. This is
false
. … There are a number of socialists who do advocate equal wages but they always propose some other type of incentive to replace wage differences.
No country has ever experimented with pure socialism because of structural and practical reasons. The only state that had come the closest to socialism was
Soviet Union
and it had both dramatic successes and dramatic failures in terms of economic growth, technological advancement and welfare.
| Country Since Duration | People's Republic of China 1 October 1949 71 years, 344 days | Republic of Cuba 1 January 1959 62 years, 252 days | Lao People's Democratic Republic 2 December 1975 45 years, 282 days | Socialist Republic of Vietnam 2 September 1945 76 years, 8 days |
|---|
Socialist means
the system under which economic system is controlled and regulated by the government so as to ensure welfare and equal opportunity to the people in a society
. The idea of socialism is first introduced by Karl Marx and Fredric Engles in their book, ‘The Communist Manifesto'.
(1) what to produce, (2) how to produce, and (3) for whom to produce
. What is produced? based on custom and the habit of how such decisions were made in the past.
Disadvantages of socialism include
slow economic growth, less entrepreneurial opportunity and competition
, and a potential lack of motivation by individuals due to lesser rewards.
In a socialist economy,
the government owns and controls the means of production
; personal property is sometimes allowed, but only in the form of consumer goods.
In theory, based on public benefits, socialism has the
greatest goal of common wealth
; Since the government controls almost all of society's functions, it can make better use of resources, labors and lands; Socialism reduces disparity in wealth, not only in different areas, but also in all societal ranks and classes.
Some of the capitalist countries with successful social policies so admired by “the squad” follow in the ranking with 37% of Americans saying that
Sweden
is the world's most socialist country while 36% opt for Denmark.
This brand of socialism believes in: …
Redistribution of income and wealth through a progressive tax system and welfare state
. Ownership of key public sector utilities, such as gas, electricity, water, railways. Private enterprise and private ownership of other industries.
Communism and socialism are political and economic systems that share certain beliefs, including greater equality in the distribution of income. One way communism differs from socialism is that it calls for the transfer of power to the working class by revolutionary rather than gradual means.
What kind of economy does the US have?
Created by the United States Constitution, the U.S. has
a mixed economy
, meaning that it combines elements of the command and market economic models. In terms of consumer goods and business services, the United States economy operates as a free market.
A socialist economy is a
system of production where goods and services are produced directly for use
, in contrast to a capitalist economic system, where goods and services are produced to generate profit (and therefore indirectly for use). … The ownership of the means of production varies in different socialist theories.
