Socialism (Economics) - Explained
What is Socialism?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Socialism?
Socialism is an economic theory pursuant to which members of a society own collectively all means of production, distribution, and exchange. Collective ownership is otherwise called public or common ownership.
What is an Absolute Socialist System?
In an absolute socialist system, the means of production, distribution and exchange are controlled by the government. Decisions pertaining output and prices of goods and services are made by the government.
What are the Objectives of Socialism?
Socialism aims to achieve an equitable society in which goods and services are equally distributed. It seeks to achieve this objective by eliminating competition in the market and limits free market activity.
Socialism vs. Capitalism
In capitalist societies, private individuals and entities control the means of production, distribution, and exchange.
In socialist societies, government or the public owns the means of production. There is generally extensive regulation in the socialist societies, price systems, distribution and production are regulated by the government but can be influenced by private individuals.
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