Table Of Contents
- What Is Socialism
- Features Of Socialism
- Merits Of Socialism
- Demerits Of Socialism
Meaning Of Socialism
Socialism is an economic and political system in which the state owns and controls the means of production, exchange and distribution of goods and services. It refects individualism private proneship and private participation in the economic activities.
A german Karl Marxx (1818-1882) propouded the theory. Russia was the first to practice socialism. Other countries were China, Poland, Romania etc.
Features Of Socialism
1. There is state ownership of all means of production, distribution and exchange.
2. There is one-party system. Only one party is recognized.
3. The state operates a centially planned economy.
4. No official opposition.
5. Individuals are not allowed to participate in the economic activities.
Merits Of Socialism
1. There is no room for exploitation.
2. There is no waste of resources.
3. The welfare of the citizens are guaranteed.
4. There is job creation for all since the government controls the economy.
Demerits Of Socialism
1. No Competition: The absence of competition has virtually affected the quality of goods produced.
2. It discourages division of labour.
3. Economic development is very low.
4. It leads to insufficiency in production.
5. Individual initiative and contributions are not allowed.
6. It may lead to dictatorship.