Particularly this is an Social Science (economics) PPT based on Concept Socialism and socialist economy of class 11th ISC.

2. SOCIALISM
Presenting by:
SHARAYU,SHRADDHA,RUDRANI

3. VIDEO

4. What is an economic system?
 Economic system is more than simply a way to
make a decision
 It is a way of life.
 Differs among societies
and reflects a wide variety
of values for individuals.
 One value cannot prove superior to others as a
general rule. Values are set in cultures and cultures
set by economic system.

5. What is SOCIALISM?
State ownership of means for producing goods and
services.
A Socialist economy has 3 basic characteristics:
1.State owns major factors of production
2.Central planners determine many of the three basic
questions
3.There is an attempt to distribute income equally.
As in all 3 basic economies… socialism is determined by
degrees…explain!

6. MARXIAN SOCIALISM
 Movement to overthrow capitalism by force is traced to Marx.
 Marx disturbed by living conditions of working class- in 1848
wrote Communist Manifesto- urged “workers to unite, you
have nothing to lose but your chains.”
 In major work Das Kapital, Marx forecast the end of
capitalism. Doomed cause based on inequality. Capitalists vs
Prolitariat. Capitalists controlled factors which gave them
power and control.
 Capitalists gained profit at expense of workers – Theory of
Labor value suggested by Marx.

7. Definition of Socialism
An economic system in which the means of
production are owned by the entire society
and operated by the public authority
according to a general economic plan for the
benefit of the entire community.

8. Features of socialism
1. Public or collective ownership of resources:
In this socialistic economy all the material means of production
are owned and used by state organs.
2. Economic planning:
A socialist economy is a fully planned economy. Planning may
be centralized or decentralized. All the basic decisions for the
control and regulation of the economy are taken by
government. Similarly all the basic and strategic functions are
performed according to a definite plan.
3. Social welfare motive:
In a socialist economy research are used in production process
to maximize social welfare instead of private profits.

9. 4. Little importance of price mechanism:
In a socialist economy the price mechanism is given a minor role in
resource allocation. A specific plan based on social needs provides
guidelines for resources allocation.
5. People co-operation:
Socialist economy is a planned economy. No plan can possibly
succeed without the active participation of people.
Therefore, while fixing the priorities of plans the central planning
authority keeps in mind the interest of the community to seek the
active participation of people in the implementation of plan, the
government may provide special incentives.
6. Lack of competition:
Prices are determined by government because productive enterprises
are state monopoly. Govt., avoids all sorts of rivalries and competition
among state enterprises. Thus there is absence of competition in a
socialist economy.

10. 7. Non-existence of social parasites:
In a socialist economy the society is not divided between
haves and haves-notes or between ‘master and servants’.
In other words the society is not classified between capitalist
and working class. Here all are masters and all are workers.
8. Equality of opportunity:
Socialism guarantees equality of opportunities and equal pay
for equal work. Government does not discriminate among
members of the society on the basis of cast, creed and religion
In short, a socialist economy is not controlled and regulated by
market mechanism. It is a comprehensively planned economy.
This economy is in sharp contrast to a capitalist economy.

11. What Changes our Capitalism into
Socialism?
Economic system mixed with government
involvement/regulation
 U.S. Postal Service
 Amtrak
 Medicare, Medicaid
 AFDC
 Social Security
 Unemployment Compensation
 FTC
 EPA
BRINGS US TO A MIXED CAPITALIST SYSTEM

12. Socialist Countries:
Cuba
Saudi Arabia
Iran
North Korea
Burma

13. Pros:
All members share benefits
Those who cannot contribute may still
participate (disabled, elderly)
Each member’s survival needs are met
Equal distribution of wealth
No socioeconomic classes

14. Cons:
 No incentive to work harder
 No competition means no reward to be innovative
 New members to the community (immigrants) are
seen as competition for limited goods and services
 Higher taxes