Advantages and disadvantages of SOCIALISM (Benefits)

Socialism is a philosophical, economic, political and social current that encompasses a series of socioeconomic theories that have in common the collective or state administration of the means of production and goods.

Advantages and Disadvantages of Socialism

Types of socialism:

Socialism was born in the 19th century as a philosophical current that starts from an opposition to liberalism. During the 19th century, the three major currents of socialism emerged:

  • Anarchism (represented by Bakunin),
  • Communism (represented by Karl Marx)
  • Social democracy (represented by Eduard Bernstein)

There has always been great rivalry between these currents although they share a critique of liberalism.

Main differences:

One difference to point out is that anarchism and communism advocate a rupt of the system while social democracy advocates reforming the system itself to achieve social improvements. Between communists and anarchists there are many differences. As for example the question of the state, much criticized in anarchist circles but strongly defended by communists (the state model of communism is the so-called dictatorship of the proletariat).

Currently, when the term socialism is used, reference is usually made, almost always, to social democracy. In the following article we are going to present a series of advantages and disadvantages of socialism.

Advantages of socialism:

  • Prioritizes collective welfare. It focuses on the common good for the whole society. The means of production are owned by the state or collectively so society benefits from it.
  • Equality. It promotes equality policies. These are philosophical currents that prioritize equality among citizens.
  • Access to a basic standard of living. It prioritizes the welfare of all individuals. It focuses on guaranteeing the basic needs of each citizen.
  • Access to a basic standard of living.
  • Labor regulation. Socialism takes the working class very much into account so it defends the regulation of the labor sphere to eliminate unemployment.
  • Environment. It advocates environmental policies. Such as reducing production in highly polluting sectors that do not produce essential goods.

Disadvantages of socialism:

  • Capital flight. Socialism generates distrust among investors and entrepreneurs. This can lead to the withdrawal of capital seriously damaging the economy.
  • Higher taxes. The redistribution of wealth by the state is usually done through taxation. Which usually generates fear among foreign investors.
  • Better treatment of the entrepreneur. Socialism does not take into account the interests of entrepreneurs, which can harm relations with the foreign market.
  • Socialism does not take into account the interests of entrepreneurs, which can harm relations with the foreign market.
  • Overregulation of the labor marketl. Poor regulation of the labor market can lead to the flight of talent abroad.