This document provides an overview of socialism as an economic system. It defines socialism as collective or government ownership of the means of production, distribution, and exchange for use rather than profit. Key features discussed include collective ownership, central planning, equality of income distribution, and lack of private property and competition. Different forms of socialism are also outlined such as utopian socialism, Marxist communism, anarchism, social democracy, and libertarian socialism. The document compares socialism to capitalism and communism, highlighting differences in their approaches to class distinctions, ownership, and production. Potential merits and demerits of socialism are listed.

1. by Traya Roy Chowdhury

2. Introduction
 An economic theory or system in which the means of
production, distribution, and exchange are owned by the
community collectively, usually through the state.
 It is characterized by production for use rather than profit, by
equality of individual wealth, by the absence of competitive
economic activity.
 In this economy, government determination of investment,
prices, and production levels and distribution of goods are
controlled substantially by the government rather than by
private enterprise.

3. Features of Socialist economy
 Collective government ownership.
 Definite Objectives
 No private property.
 Central planning.

4. Cont.
 Achieving a common welfare state.
 Little importance of price mechanism.
 People co-operation.
 Lack of competition
 Equality of income distribution

5. Socialist Ideologies
Utopian socialism
 First currents of modern socialism.
 Henri de Saint-Simon, Charles Fourier, and Robert
Owen.
 Socialists who lived in the first quarter of the
19th century .
 They were labeled ‘utopian’.

6. Marxist communism
 Based upon common
ownership of the means
of production .
 abolish all leadership,
and govern with a
commune.
 Class struggle plays a
central role in Marxism
 Marxism-Leninism
 Stalinism
 Council and Left
communism

7. Anarchism
 advocates stateless societies based on non-
hierarchical free associations.
 working-class movement
 In 21st century, anarchism grew in popularity and
influence as part of the anti-war, anti-capitalist, and
anti-globalization movements
 Anarchist communism
 Anarcho-syndicalism

8. Social democracy Liberal socialism
 Can be divided into
classic and modern
strands
 Classic social democracy
was a political philosophy
 Modern social democracy
advocates welfare state.
 Includes liberal
principles
 supports a mixed
economy that includes
both public and private
property.
 Liberty and equality are
mutually needed to
achieve greater
economic equality

9.  Non-hierarchical, non-bureaucratic society without
private property in the means of production.
 Every person would have free, equal access to tools
of information and production.
 This would be achieved through the abolition of
authoritarian institutions and private property.
Libertarian socialism

10. Capitalism vs. Socialism
 Capitalism and Socialism are opposing schools of thought.
 The arguments is about economic equality and the role of
government.
 The U.S. is widely considered the bastion of capitalism.
 Scandinavia and Western Europe are considered socialist
democracies.

11. Difference b/w capitalism and socialism
Socialism Capitalism
 organization based on the
holding of most property in
common, with actual
ownership ascribed to the
workers.
 Production may variously be
coordinated through either
economic planning or
markets.
 organization based on the
free market and
privatization in which
ownership is ascribed to
the individual persons.
 Market-based economy
combined with private or
corporate ownership of the
means of production.

12. Cont
Socialism Capitalism
 Class distinctions are
diminished.
 Goods and services are for use.
 Production for use.
 The means of production are
socially-owned with the surplus
value produced accruing to
either all of society.
 Classes exist based on their
relationship to the means of
production.
 goods and services are
produced to make a profit,
 Production for profit.
 The means of production
are privately-owned and
operated for a private profit.

13. Socialism Vs. Communism
 Both promote equality and seek to eliminate social
classes.
 communism is an extreme form of socialism.
 communism is a political system, socialism is
primarily an economic system

14. Difference b/w socialism &communism
socialism communism
 From each according to his
ability, to each according to his
contribution
 Freedom of religion, but
usually promotes secularism.
 Class distinctions are
diminished
 the means of producing and
distributing goods is owned
collectively or by a centralized
government
 From each according to his
ability, to each according to his
needs.
 Abolished - all religious and
metaphysics is rejected.
 All class distinctions are
eliminated.
 there is no centralized
government - there is a
collective ownership of
property and the organization
of labor for the common
advantage of all members.

15. cont
Socialism Communism
 All individuals should have
access to basic articles of
consumption and public goods
to allow for self-actualization.
 All choices, including
education, religion,
employment and marriage, are
up to the individual.
 Union of Soviet Socialist
Republics (USSR
 All people are the same and
therefore classes make no
sense. The government should
own all means of production
and land and also everything
else
 Either the collective "vote" or
the state's rulers make
economic and political
decisions for everyone else.
 Examples 0f Communist states
are the erstwhile Soviet Union,
Cuba and North Korea.

16. Merits of Socialism
(1) Greater Economic Efficiency.
(2) Greater Welfare due to Less Inequality of Income.
(3)Absence of Monopolistic Practices.
(4)Absence of Business Fluctuations.
(5) Freedom of Consumption

17. Demerits of Socialism
 Loss of Consumers’ Sovereignty.
 No Freedom of Occupation
 Malallocation of Resources
 Bureaucratic
 Expenditure on Planning
 Rigid Economy

18. The fall Of Soviet Union
 The Russian model of socialism and its
shortcomings.
 Revolutionary rather than evolutionary in its
approach.
 Undermining the process of natural evolution.
 Tendency towards dictatorship.

19. Conclusion
 Socialism is basically a form of government that
places the needs of society above the individual.
 Capitalism cannot guarantee democracy to many
millions in backward countries.
 They will introduce reforms within the democratic
system by altering Governmental policies;
introducing new laws, new ideas and nationalism as
some of the core services.
 It is disliked for the loss of political, economic and
personal freedoms.

21. Thank you.