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Socialism is, broadly speaking, a political and economic system in which property and the means of production are owned in common, typically controlled by the state or government. Socialism is based on the idea that common or public ownership of resources and means of production leads to a more equal society.
The word “socialism” is perhaps most associated with countries such as the former Soviet Union and China under Mao Zedong, along with present-day Cuba and North Korea. These economies conjure the idea of totalitarian leaders and public ownership of virtually all productive resources.
What happens to businesses under socialism?
A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production is carried out directly for use rather than for profit.
No, you can’t start your own business under socialism. The very basics of socialism is that business is owned and run for the benefit of society. That means the government runs your business either through overregulation or outright ownership.
Socialism is bad because it is condescending, inefficient, and immoral. Webster defines “socialism ” as: …any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.
Does socialism really work?
Socialism Overview. Socialism doesn’t work because it does not reflect human nature. This unnatural state of existence, by the way, is what makes socialism an ideology – it doesn’t reflect what’s real; it only reflects what’s imagined.
A common response from the left is that socialism (or democratic socialism) works just fine in Sweden, Norway, and Denmark. It is certainly true that Sweden, Norway, Finland, and Denmark are notable economic successes.
While the American economy is a capitalistic one, there are also certain elements of socialism in which the government acts to ensure the welfare of Americans. For instance, there is the social security system that makes a payment to American workers after the age of retirement.