Questions what is the main features of the socialist economy?



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Questions what is the main features of the socialist economy


QUESTIONS

  1. What is the main features of the socialist economy?

Key words: Collective ownership, economic, social and political equality, economic planning, maximum social welfare
Answer:
Collective ownership:
In socialism, all means of production are owned by the community, government, and no individual can hold private property beyond certain limit. Therefore, it is government who utilizes these resources in the interest of social welfare.
Economic, Social and Political Equality:
Under socialism, there is almost equality between rich and poor. There is no problem of class struggle.
Economic Planning:
Under socialism, government fixes certain objectives. In order to achieve these objectives, government adopts economic planning. All types of decisions regarding the central problems of an economy are taken in the economic plans. There is a Central Planning Authority, who plans for the economy.
Maximum Social Welfare:
The sole objective of socialism is the maximum social welfare of the society. It means that there is no scope of exploitation of labor class. Government keeps a close eye on the needs of the poor masses while formulating plans.


  1. Advantages of socialism?

Key words: economic equality, poverty, living standards, labor productivity
Reduction of relative poverty. A state which provides a minimum basic income for those who are unemployed, sick or unable to work maintains a basic living standard for the poorest in society and helps to reduce relative poverty.
Free health care. Free health care at the point of use means everyone is entitled to basic health care. This increases the living standards of those who cannot afford to pay private doctors. By improving the nation’s health, it also contributes towards increased labor productivity and higher economic growth in the long-term.
A society which has economic equality is likely to be more cohesive. A redistribution of income and opportunity from the very rich to the very poor can increase total happiness in society.



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