Today in this post we will tell you about socialism. If you want to start a new business, you have to have different kinds of business information so we keep giving you a lot of information on this website. It is an economic system and today’s world I think there are a few countries that use this economic system. so without wasting a time let us know about socialism.
Socialism is an economic system which implies government ownership of production. The total control and management of the business and industry is reduce to the monopolist control” Socialism has many advantages and many disadvantages, so today we will tell you in detail its advantages and disadvantages.
CHARACTERISTICS OF SOCIALISM
The following are the main characteristics of socialism
1. Collective ownership:
In socialism, all the rights of the ownership of recourses spreading throughout the country shrink from individuals to government. Therefore, the government decides how to distribute these recourses.
2. Government’s control:
Under this economic system, all the authorities and control is under the government control. The government now decides as to which resources are to be distribute and how people work.
3. No competition:
As in socialism all resources and property are occupied only by the government therefore there is no individual importance of private owners and capitalists and in this way the fire of competition which is made by the government.
4. Determination of prices:
Due to the nonexistence of a competitive environment, the forces of demand and supply become useless, ineffective & worthless; it is now the government the final prices of goods.
5. Elimination of Class Conflicts:
Under this system, the two classes rich and poor come to an end and higher and lower levels are eliminate. An equal distribution of wealth is observe among the public.
6. Availability of full employment:
No concept of unemployment is there under socialism because every person man or woman, educate or uneducate, capable or incapable have to work. In other words, working is essential.
7. Central Planning:
Under this condition the responsibility of the government increases. Because the country not run an automatic system but it is run intention. therefore all the duties of planning and organizing go to the government.
ADVANTAGES OF SOCIALISM ECONOMIC SYSTEM
Although socialism is tuff and strict economic system it has merits which are as given.
1. Elimination of Class Conflicts:
Since under this system no difference is maintained between the rich and the poor and all the resources and property is divided equally therefore all the classes (upper, middle, and lower) eliminate itself and the provision of resources continues to flow among the people with justice.
2. No interest:
In capitalism, the capitalist earns huge profits by the way of interest. But in socialism, the element if interest dies itself as all the recourses are now handle the supreme power “Government”.
3. Elimination of Unemployment:
The major advantage of this system is that unemployment dies itself. Because this system restricts every person to work and struggle therefore no person complains of unemployment.
4. Better Allocation and Better Saving Of Resources:
The productive resources of the nation are more economically and optimally allocated among the various production areas. A central planning authority determines the right use of the allocation of resources. Besides it, million of rupees which were being consume on advertisements are save.
5. Determination of prices:
Contrary to capitalism where firm owners try to maximize the prices, in socialism it is now the government that decides about the final prices of goods. Due to nonexistence of a competitive environment, the forces of demand and supply become useless, ineffective & worthless.
DISADVANTAGES OF SOCIALISM:
Socialism causes many demerits for the society which are as follows:
1. Monopoly Of Government:
In the socialism form of the economic system, the certain group “government” occupies the whole economy of the country and has full control over the white and black of the country, therefore, this group emerges as a monopolist and the same demerits penetrate in socialism which exist in monopoly.
2. Acute Shortage In Hard Working’s Passions:
In the Islamic economic system or capitalism, the right of ownership goes to the public therefore the private owners not only utilize the services of their workers in the best possible way but also motivate them. The workers also work hard from heart and soul in the expectation of promotion and other benefits and not only workers but also the private owners work hard for the stability and growth of their business. In this way, the economy grows up. But as all the resources are to be divided equally among the whole public therefore the passions of works becomes very low and the public spends their working time without any extra efforts.
3. Wrong Use Of Abilities:
As in this system, no concept of unemployment exits and all the citizens have to perform their duty of work, that’s why people select those professions and departments for themselves which are considered easy and effortless. Although their expertise does not match the profession they adopted, While public run away from those works and profession which require hard working. Because of all this, an imbalance situation emerges which is to be control by the government.
4. Ignorance Of Likes And Dislike:
In socialism, only the government decides what to produce therefore only those goods are supplied in the market which is consider necessary. These goods relate to food, dress, decoration of home, and other facilitating things. In other words, the likes and dislikes of public rank as a secondary elements and the public have to use whatever produced by the will of the government.
5. Downfall In Production Quality:
In capitalism or the Islamic economic system the goods are made for getting profit, the more innovative, multipurpose, beautiful and auto fit the product is, the more buyers purchase it which ultimately grows up the profit of producer. The fear of competitors improves the quality of the product more.
I hope you have understand this information we have give you about socialism. basically, it is only a Economic system of government and the government can close and run the business whenever it wants, so there is a lot of its advantages and disadvantages.