What Is Socialism? Definition, Meaning, Advantages And Disadvantages

Table Of Contents

1. Meaning Of Socialism
2. Origin Of Socialism
3. Features Of Socialism
4. Advantages Of Socialism
5. Disadvantages Of Socialism

What Is Socialism?

Socialism can be defined as an economy/political system where the state owns and control the means of production and distribution of goods and services. Private ownership of property are not allowed as citizens all work for the state. The state provides for all at cheaper rule and not to make profits. Socialism provides for its citizen according to their needs and contribution. Countries that practice these system includes: Russia, Kiev (Europe), Croatia, Bulgaria.

Origin Of Socialism

Karl. Marx from Germany was the founder of socialism and he defined it as an economic system which show the state the rights to own and control the means of productions and distribution.

Features Of Socialism

1. The state controls major portion of the means of production and distribution of goods and services.

2. There is monopoly of supplies.

3. Goods and services are not provided to make profit but to offer essential services to the citizens.

4. There is equitable distribution of income to the people not according to their ability to grab but according to their contribution and needs.

5. There is no price competition and advertising

Advantages Of Socialism

1. The system carter’s for every citizens.

2. There is equitable distribution of goods and services.

3. There is no class struggle between the rich and poor.

4. In socialism employment is guaranteed.

5. It is democratic in nature.

6. It is a unifying factor because it discourages individualism.

7. It creates no room for hoarding of goods.

8. Private monopoly is prevented in a socialist system.

9. Socialism guarantees the rule of law in a country where it is adopted.

10. It is argued that economics rivalry especially unhealthy ones is virtually absent in a socialist economics system.

Disadvantages Of Socialism

1. It encourages laziness.

2. It does not encourage creativity and innovation.

3. It denies consumers alternative choice.

4. It does not encourage economic development.

5. Because of no market competition, the quality of goods are always poor.

6. It is not self regulating and self function.

7. It suppresses individual’s initiation.

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