Speaking Muet
ECONOMIC SYSTEM
Socialism
Socialism is an economic system where all the economic decisions are made by the government or a central authority. There will be no private property rights since the government officially owns all resources. It is also known as a command economy or a planned system.
Socialist economics refers to the economic theories, practices, and norms of hypothetical and existing socialist economic systems.
A socialist economy is based on some form of social ownership, which includes varieties of public ownership and independent cooperatives, over the means of production, wherein production is carried out to directly produce use-value sometimes, but not always, coordinated through economic planning and a system of accounting based on calculation-in-kind or a direct measure of labor-time.
The term socialist economics may also be applied to analysis of former and existing economic systems that call themselves "socialist", such as the works of Hungarian economist János Kornai.
Socialist economics has been associated with different schools of economic thought, most notably Marxian economics, institutional economics, evolutionary economics and neoclassical economics. Early socialism, like Ricardian socialism, was based on classical economics. During the 20th century, proposals and models for planned economies and market socialism were based heavily on neoclassical economics or a synthesis of neoclassical economics with Marxian or institutional economics.
Characteristics
1 Public ownership of resources
All the resources are owned and operated by the state or the government in the interest of society as a whole. This is to ensure equal opportunity of all citizens regardless of their income. Public ownership also aims to fully utilize the country’s resources.
2 Central planning authority
The central authority is responsible for making economic decisions for society. The authority plans and allocates resources between
Socialism
Socialism is an economic system where all the economic decisions are made by the government or a central authority. There will be no private property rights since the government officially owns all resources. It is also known as a command economy or a planned system.
Socialist economics refers to the economic theories, practices, and norms of hypothetical and existing socialist economic systems.
A socialist economy is based on some form of social ownership, which includes varieties of public ownership and independent cooperatives, over the means of production, wherein production is carried out to directly produce use-value sometimes, but not always, coordinated through economic planning and a system of accounting based on calculation-in-kind or a direct measure of labor-time.
The term socialist economics may also be applied to analysis of former and existing economic systems that call themselves "socialist", such as the works of Hungarian economist János Kornai.
Socialist economics has been associated with different schools of economic thought, most notably Marxian economics, institutional economics, evolutionary economics and neoclassical economics. Early socialism, like Ricardian socialism, was based on classical economics. During the 20th century, proposals and models for planned economies and market socialism were based heavily on neoclassical economics or a synthesis of neoclassical economics with Marxian or institutional economics.
Characteristics
1 Public ownership of resources
All the resources are owned and operated by the state or the government in the interest of society as a whole. This is to ensure equal opportunity of all citizens regardless of their income. Public ownership also aims to fully utilize the country’s resources.
2 Central planning authority
The central authority is responsible for making economic decisions for society. The authority plans and allocates resources between