Table of Contents
Top 10 Socialism Pros & Cons – Summary List
|Better education opportunities
|Socialism may take away incentive to work
|Socialism can provide minimum basic income
|May improve conditions of the general public
|Politicians can get too much power
What are the weaknesses of capitalism?
Cons of capitalism
- Monopoly power. Private ownership of capital enables firms to gain monopoly power in product and labour markets.
- Monopsony power.
- Social benefit ignored.
- Inherited wealth and wealth inequality.
- Inequality creates social division.
- Diminishing marginal utility of wealth.
- Boom and bust cycles.
|People’s Republic of China
|1 October 1949
|Communist Party of China
|Republic of Cuba
|1 January 1959
|Communist Party of Cuba
|Lao People’s Democratic Republic
|2 December 1975
|Lao People’s Revolutionary Party
|Socialist Republic of Vietnam
|2 September 1945
|Communist Party of Vietnam
What countries are actually socialist?
It is pointed out by the critics that Socialism stands for authoritarianism and bureaucratic control on a big scale. State control over means of production and distribution is a thesis for giving strength to the bureaucracy. It is most likely to lead to corruption.
Why do capitalists have a problem with socialism?
One of the biggest complaints that capitalists have about socialism is the redistribution of income that occurs. When the very rich are taxed to contribute to the very poor, then the entire society can experience an increase in total utility or happiness.
Economists of the Austrian school argue that socialist systems based on economic planning are unfeasible because they lack the information to perform economic calculations in the first place, due to a lack of price signals and a free-price system, which they argue are required for rational economic calculation.
What are the pros and cons of socialism?
The primary criticism of Socialism is that it doesn’t improve living standards for the majority. It simply lowers the living standards of those who have means to have them come closer to living in poverty without raising the poor up.