Benefits of Socialism
Socialism refers to an economic system where the means of production are controlled by a central body such as the government. The mechanism of production of goods and services, their allocation, distribution, and exchange are collectively owned by the community. Our focus here shall be to discuss the various benefits of socialism. But before then, let us understand what socialism means.
Read about: Free enterprise benefits
What is socialism?
The aim of the socialist economy is to ensure that all members of the society where it is practiced benefit from the goods and services available equally. It also aims to achieve equal distribution of wealth among citizens through the maximization of its collective wealth. The production of goods and services is governed by the principle of usage value. This means societal needs drive production and is carried out at the command of the economic planning committee or the state. Thus, the market forces of demand and supply do not direct the flow of production or its pricing system.
Socialism is a system of social organization that advocates communal control and ownership of the means of production and distribution. This system believes in collective cooperation between governments and their citizens such that all institutions are overseen and run publicly. Countries, where socialism strives usually have multiple levels of government with each community’s interests and needs, made the priority of its immediate government.
What are the pros of socialism?
Read about: Mixed Economy Advantages
Socialism benefits
- Balanced and rapid development
- Elimination of class struggles
- Equal wealth and income distribution
- Production based on usage value
- Social justice
- Social welfare
- Stable economy
The benefits of socialism are listed above. This economic system is generally considered more beneficial than capitalism due to its aim of maintaining an equitable distribution of wealth among the people. Let us discuss each of these benefits of socialism below.
Balanced and rapid development
One of the benefits of socialism is the balanced and rapid development that occurs in socialist economies. This is made possible due to the collaborative planning of the economy as it enables the government to set out plans to develop the various regions within the country. Instead of experiencing growth and development in only a few regions and industries, socialism ensures that the whole country and all industries that function in society are carried along. Thus, the country’s economic plans set down strategic and specific outlines on how each community can benefit and get developed.
As these development programs get implemented across regions and industries, it ensures a balanced rate of development within the country. Additionally, since most of these plans get implemented in a timely manner, it further ensures that the development occurs rapidly across the board. Hence socialism is beneficial due to the balanced and rapid development it brings to societies.
Elimination of class struggles
In a socialist economy, class struggles are often said to be eliminated by the collective ownership and control of the means of production. These means of production such as factories, land, and resources, are owned and controlled democratically by the workers themselves or by the state on behalf of the society. This can take different forms, such as worker cooperatives or state-owned enterprises. The shift in ownership and control is believed to eliminate the exploitation of workers by their employers which is a common occurrence in a liberal economy.
This benefit of socialism further makes it possible for workers to collectively control their own working conditions and wages. Additionally, since the means of production are collectively owned, it goes without saying that any profits accruing from economic activities are also collectively owned. Hence, instead of having people divided into classes based on their level of wealth, class differentiation rarely exists as all members of society benefit equally from the resources available. Thus, one pro of socialism is that it eliminates class struggles in society.
Equal wealth and income distribution
An advantage of socialism is that wealth and income are intended to be distributed more equally among members of society. The idea is that by collectively owning and controlling the means of production, the wealth created by those means will be shared among all members of the community, rather than concentrated in the hands of a small group of capitalists. This is intended to reduce economic inequality and provide a more equitable distribution of resources. Socialism aims to provide equal opportunities for wealth and income to individuals through the distribution of well to citizens based on their input to the economy.
This means that hard work is encouraged and idleness is discouraged. All members of society are expected to work and contribute their quota to the growth of the economy and the wealth generated is equitably shared among all. Some of the ways socialist economies achieve this benefit of equal distribution of wealth and income are through progressive taxation and social welfare programs.
Read about: Disadvantages of Free Market Economy
Production based on usage value
A key benefit of socialism is that the production of goods and services is guided by their usage value rather than exchange value. Economic planning is often used to coordinate production and distribution, rather than relying on the market forces of demand and supply. The goal of production is to meet the needs of all members of society, rather than maximize the profits that could be made. In a socialist economy, production is often based on the principle of usage value, which means that goods and services are produced to meet the needs and wants of the people, rather than for their exchange value.
If production is based on exchange value, it means that goods and services are produced to be sold for a profit. Under socialism, the government may use economic planning to determine which goods and services are needed and allocate resources accordingly. The idea is to ensure that everyone’s basic needs are met, rather than leaving the provision of goods and services to the market which often results in the skewing of production towards providing goods and services that bring the highest profit. Thus, production to meet needs is another pro of socialism.
Social justice
One of the benefits of socialism is the role of social justice in the state. Social justice refers to fairness and equality in the distribution of resources and opportunities within society. This can include economic, political, and social equality. It further implies that economic inequalities are done away with while the equitable distribution of national income is ensured. Consequently, everyone in a socialist economy has access to the resources and opportunities needed to meet their basic needs and live fulfilling lives.
Other aspects of social justice include promoting and protecting the welfare of all members of society, especially the vulnerable and marginalized ones such as the elderly, minorities, and the disabled. Social justice is perhaps one of the major advantages of socialism to society as every member gets adequately taken care of and gets their fair share of the national wealth. This often results in a more inclusive and compassionate society.
See also: Societal Marketing Concept Examples and Countries
Social welfare
An important benefit of socialism is its high consideration of social welfare. Social welfare refers to the provision of basic needs and services for all members of society. This can include things like healthcare, education, housing, and unemployment benefits. The goal of social welfare in socialism is to ensure that everyone has access to the resources they need to live a decent life and participate in society, regardless of their income or social status. Thus, social welfare cushions the effects of being out of work or being unable to work either due to some disabilities or accidents.
The funding for these social welfare programs typically comes from a combination of government spending and redistribution of wealth through progressive taxation. This implies that the government specifically sets aside a certain amount in its budgetary plan to meet the social welfare needs that occur in society. The social welfare benefits of socialism further improve the quality of life enjoyed by the people because services such as education, healthcare, and housing are made affordable for everyone. All these serve as safety nets that make citizens less vulnerable to economic shocks.
Stable economy
A prominent pro of socialism is the extent of economic stability enjoyed when compared to capitalism. This is largely attributed to the fair distribution of resources and opportunities as well as sustainably meeting the needs of all members of society. Historically, a considerable number of socialist economies have been stable and successful, while a few have struggled with economic inefficiencies and political problems. The stability of a socialist economy, therefore, depends on a number of factors, such as the specific policies and institutions that are in place, the level of economic development, and the political and cultural context.
Economies that have been able to successfully balance economic planning, implementation and development generally enjoy less economic volatility. The additional fact that private investments are not part of socialism further contributes to ensuring that economic fluctuations do not occur. Therefore, an advantage of socialism is the stability of the economy that is prevalent in such economies. Socialism further prioritizes the well-being of society as a whole, rather than just individuals or businesses, which can lead to a more efficient allocation of resources and better public services. This in turn ensures a more stable economy.
Read about: Mixed Economy Disadvantages
What are some benefits of socialism?
Each of these pros of socialism combines in ensuring that socialist economies are effectively run. The government’s ability to direct investment in important sectors of the economy such as agriculture, real estate, health, and education as well as equitable distribution of state profits from nationalized industries for the overall national good are additional benefits of socialism. In addition, the direction of producers towards social rather than market goals, better control of the industries both by and for the workers, and the nationalization of companies enable the government to extend the benefits and burdens of state-funded research and development to the wider populace.
