SOCIALISM

BIG IDEA

• Public and collective ownership in means of production
• Central planning of the economy
• Emphasis on equality and economic security
• Goal of reducing class distinctions
• It’s the system in the middle of communism’s and capitalism
• Like communism, socialism seeks redistribution of wealth more equitably by the communal ownership of natural resources and major industries

PROS

• Reduction of relative poverty
• Free health care
• Diminishing marginal utility of income
• Benefits of public ownership, not just benefiting shareholders

CONS

• Lack of incentives, no one will feel like they need to work
• Government failure
• Rationing health care, if everyone has free health care the hospitals go broke and run out of equipment

WHAT NEEDS ARE MET

• The government makes sure everyone has welfare checks and Medicare
• Protection for workers but government still tax what they want
• Social security net
• In theory economic equity is reduced along with economic insecurity

FACTS

• Some socialist states still around are people’s republic of China, republic of Cuba, socialist republic of Vietnam
• Karl Marx fully believes and one of the most prominent voices backing it
• The United Kingdom, India, and Israel tried socialism but none were successful

CREDITS

• https://www.economicshelp.org/blog/147271/economics/pros-and-cons-of-social...
• https://www.investopedia.com/articles/investing/082014/what-exactly-sociali...
• The first Economic System pdf you provided