What advantages does a socialist economy have?

Answer 1

What are the benefits of socialism?

it basically eliminates poverty and improves the overall quality of life.

___________

The above answer was written by a socialist and is obviously false because communist/socialist countries usually have a much lower standard of living. It might be true on paper in a society where everyone is motivated by the common good and there is no jealousy or envy, but human nature is an extremely hard beast to tame. Most people do not feel that significant portions of their efforts should go to support people that cannot or will not work. As result both sides have a significant downturn in productivity. The unmotivated that would have worked if they needed to in order to survive, now loaf because they know they will be provided for by the state in any event, and the motivated that would have worked 23 hours a day if they could reap they the benefits of their labor for themselves, now work less than they normally would have, because their efforts are for nought. They only way for them to come out ahead is to work on the side or off the books and now what would have been called productivity in a capitalistic country now becomes a crime. Welcome to the Soviet Union. The highest form of functioning socialism is probably that of the Israeli farming cooperatives called Kibbutzim. The kibbutz has a product, be it chickens, corn, machine tools or automobile windshields. The kibbutz receives all the compensation for it's product and The kibbutz management assigns work to those that live on the kibbutz in exchange for living quarters, food (everyone eats in a communal dining hall, ) education for children, and a living "allowance". There might be scholarships for those that wish to pursue a degree beneficial to the kibbutz, agriculture, engineering etc. Many of the early post independence settlers to Israel came from post Holocaust Europe or were expelled from Arab countries and arrived with only the shirts on their backs. The ability to have all their material needs met immediately, in return for a normal working day appealed to many. Today the Kibbutzim are in decline. They have been replaced by settlements that pay inhabitants a normal wage with which the individuals rent or buy homes etc.

Answer 2

Advantages: Income inequality is reduced

Disadvantages: Taxation