As the global economic crisis started, people began thinking of ways to lessen the widening wealth gap among and within nations. The idea of capitalism becomes unpopular, and renewed interests in socialism start to surface.
What is Socialism?
Do you know about socialism? Socialism is an economic system that is centred on common ownership. Here private ownership of any property is not allowed. It can also be defined as a political system with a classless society where there are equal power relationships among people in a community.
Socialism has both pros and cons. In this article, we are going to list down both arguments to have a better understanding of the concept of socialism.
First of all, let’s have a look at a few pros of socialism.
Pros of Socialism:
- Access to education and health care by every citizen
- Results in the formation of a classless society
- Bring balance in wealth and earnings
- Eradication of monopolies in corporations
- Reduction in poverty
- Reduced hidden taxes
- Protection of environment
1. Access to Quality Education and Health Care:
Two significant problems practising capitalism are the high cost of education and health care. Because of this, many countries are having higher illiteracy rates and unable to continue their education. Also, many people who do exist who cannot afford health care are not provided with enough medical attention.
Whereas in a socialist society, education is made available to everybody. In this way, people will be able to meet their required medical needs because the costs of health care will be affordable for everyone.
Moreover, in the government-owned hospitals and health care facilities, medicines and medical services are relatively low in costs as not completely free.
2. Results Information of Classless Society:
Socialists believe in the fact that equality among people in society is important, comprising social class. By making people equal to each other, the gap between the poor and the rich will be reduced.
Opportunities are made available to every member of the community regardless of race, colour, age, and gender. In this way, a classless society is formed.
3. Bring Balance in Wealth and Earnings:
With the government in control and taking in hold most of the industries like housing, utility companies, poor members of the society are given access to the basic services.
While on the other hand, when it comes to taxes, there is a progressive increase in a socialist society. This means that the higher the income higher will be the taxes.
With this taxation system, it will be easier for low-income employees to balance their earnings. Similarly, those who earn more and pay higher taxes will still have enough money to spend.
4. Eradication of Monopolies in Corporations:
In a capitalist nation, companies are taken into account privately. Unlike capitalists, in a socialist country where the government itself monitors, controls and owns companies that offer services like medical institutions and transportation, where money usually comes from taxes collected by people.
This is how prices are regulated and made affordable for people. As in capitalist society, private business owners and suppliers can demand higher prices for all kinds of goods and services provided by them.
5. Reduction in Poverty:
Welfare state which provides minimum basic income especially for those who are unemployed, sick or not able to work maintains a basic living standard for poor in society and in this way there will be a significant reduction in poverty.
Cons of Socialism:
There are also many disadvantages of socialism. Let’s have a look at some cons of socialism.
- Government is given sufficient control
- The demand for higher taxes
- Significant increase in the rights of workers
- Results in lack of motivation
- Unnecessary spending by government
- People dealing with bureaucracy
1. Too Much Control Is given to the Government:
Many critics of socialism argue that this idea of allowing the government to control people’s lives is not good such as where to live, how much to earn and what health care to take. With the state on top of such things, people have lesser options basically on services and commodities.
2. The Demand for Higher Taxes:
People owning white-collar jobs are largely complaining about costly tax payments. Since the government only demands higher taxes so that they can provide services to citizens at low or free cost.
3. Increase in Right of Workers:
As unions and workers’ councils have more power in businesses, many critics claim that this can give them too much authority that workers will demand more than their average wage limit. This will bring economic failure and unemployment for the opponents.
4. People Dealing with Bureaucracy:
Groups of the community who are not in favour of socialist society claim that with state-run services, there is too much bureaucracy. Bureaucracy makes it difficult for people to get services fast.
People of the community have to go through standard procedures and long processes to get basic services. But normally citizens are being deprived of urgent assistance.
5. Result in Lack of Motivation Level:
People who are against this concept of socialism say that making people’s lives better and comfortable and providing them with free services, will make them lazy and not eager to learn.
They will not drive to work harder and also on the dream of improving their lives. The proprietor of the business will not think of opening new businesses, and innovative people will also be comparatively less inspired by inventing new things.
However, nothing will change, and they will feel themselves stuck.
6. Unnecessary Spending by the Government:
Some groups said that the government in a socialist setting has the right to spend money collected from taxes for the general public. Too much spending will lead to a powerful economy. This irresponsible spending by the government also brings inflation.
Socialism exists to ensure equality and also the formation of a classless society. As it has many benefits, but not everyone is happy with this idea of socialism, just like in a government, there are both good and bad sides, socialism also has advantages and disadvantages.
Will it be beneficial to bring this concept of socialism again and again, especially when the nation is suffering from the economic crisis?
So, the government should weigh both pros and cons of socialism.