What are some important characteristics of socialist economies?

Answer 1

Socialism is an economic system where the means of production are either owned or managed by the state and where the investment structure, consumption, allocation of resources, distribution of income etc are regulated and directed by the state. The main feature of a socialist system is as under;

1. Equitable Distribution of Income: - Socialism is better for peace and happiness. In socialist countries, an equitable distribution of income is an important feature. Equitable distribution of income does not mean that there is a perfect equality in income distribution. There may be wage differentials, depending on the nature and requirements of the nature of the job. By fixing the appropriate wage rates and other economic benefits, the objective of equitable income distribution may be achieved.

2. Government Ownership: - Another of socialist system is government ownership. Here, the main means of production are either owned by the government or its use is governed by the government. It becomes easy to achieve the desired pattern of resources allocation if the state owns almost the whole of the means of production. Socialists believe in working a political party, by educating public opinion, to win enough votes to put their programme peacefully into effect.

3. Economic Laws: - In socialist system, all working people have an interest in the fullest understanding and application of the economic, laws of socialism. The main change in economic conditions in a country that has taken the road of building socialism leads to the economic laws of socialism coming into being and beginning to operate. These laws have some special features/conditions by the specific socio-economic structure society. The freedom of occupation is absent or restricted in socialist countries. An individual may not have the freedom to select any occupation he is qualified for.

4. Plan and Action of Central Authority: - The liberal economy preserves to a considerable extent free choice of consumption. The socialist economies generally have a uniform plan of action or central authority like the central planning agency to formulate the national plan for development. Socialism stipulates an authority which can set and accomplish socio-economic goods of authority, which must have power to direct the means of production according to some plan action. In socialist system, the central planning authority commands the pattern of resource utilization and development.

pradeepkalari (pradeep sp)

Answer 2

We can define Socialism as a command economy with regulated price and no private property and where the Labor is given more importance and with central planning systems where What, How For whom to produce is decided by the government and non-existence of Consumer Sovereignty.

Now we will see the features of Socialism:

Command Economy: CentralPlanning and strict Bureaucracy is the main feature of Socialistic Economy. It directs all Political and Social Activities.

Limited Role of Market.

Generally the Market is determined by Demand and Supply and here as the Government decides the production allocation of resources it is having minimum role to play.

No private ownership of property or factors of production. The government is the owner of all properties. Only a little Private property is allowed and no property rights, hereditary rights.

Central Planning.

The main feature of Socialism is central planning which decides the basic problems like a) what to produce? B) How to produce? C) For whom to produce? The Central
Planning committee sets the goals for the economy and also he time frame within
these goals are to be realized.

Social Security and welfare: In a Socialistic Economy the government decides all economic decisions and sets the goal of the economic welfare and security of weaker sections of society and aged people.

Answer 3

Social ownership of the means of production. This might mean that all the workers of an enterprise co-operative own it, or a public body owns the means of production and appropriates the surplus product.

Collective decision-making in firms. This means that workers have greater freedom and autonomy to organize their work schedules and goals, such as self-management, and democratically elect their management.

Production for use. This means that the means of production are organized into units to produce goods and services directly for their utility, in contrast to capitalism, which produces things to make a profit first and foremost.

Economic planning within production and distribution. This means that businesses do not trade means of production in capital markets, they are allocated as internal transfers between divisions. This is not true of all forms of socialism; many models of socialism advocate markets. This is called "market socailism".

Distribution based on individual contribution. This is a principle that states that one should receive compensation proportional to how much they contribute to society through work.

Answer 4

The key features include:

1. Common ownership: the entire structure of production and all Natural Resources be held in common by all people. This means that every person will stand in equal relationship with every other person with respect to the means of producing the things we need to live, that is, mines, industrial plants, manufacturing units, all land and farms, and all means of transport and distribution. This also means the common ownership of all natural resources. Perhaps "common ownership" is partly a misnomer because what is meant is that means of production and resources would not be owned by anyone. In place of the property relationships of owners and non-owners, means of production will simply be available to the whole community to be used and developed solely for the needs of all people.

2. Democratic control: social policy would be decided by communities. In place of rule by governments, public decisions would be made by people themselves. One great advantage of democratic practice in socialism would be not only the organisation of decision making but also the freedom to carry out those decisions. This freedom of action would arise from direct control of community affairs following the enactment of common ownership and removal of the economic constraints of the capitalist system. Without powers of action decision-making is meaningless.

3. Production solely for use means: people in socialism would be free to co-operate voluntarily with each other in producing goods directly for the needs of the community. This would be useful labour co-operating to produce useful goods solely for consumption. Production solely for use would replace production for sale at a profit. Things produced for sale under the capitalist system are of course intended to supply a need of one kind or another but as commodities they are produced primarily with a view to money gain and the increase of money capital. As a general rule the market system is a system of 'no profit no production'. In socialism this profit motive would be entirely removed. In a moneyless socialist society the factors of production would operate only in a useful form and not as economic categories with a price. Labour would not be wage labour serving the interests of an employer but would be free labour. People at work would be creating only useful things and not economic values from which profit is derived.

Answer 5

• The profit of everything gained is shared as a whole.
• There are no big businesses since the concept of communism is what socialists live by.
• The government decides on how the money should be shared among the society.

Answer 6

1. removal of exploitation.

2. economic planning.

3. lack of competition.

4. economic inequality.

5. employment opportunities...

Answer 7

socialization