Pros and Cons of Socialism

If you have ever tuned into any news channel long enough, you must have heard the words, socialism, communism and the all-time favourite, capitalism, being thrown around. Each of these terms represents a different economic worldview and different people support different aspects of these worldviews for various reasons. In this article, we are focusing on socialism. What does it mean, and does it have any pros and cons for the economy? Here we will see about Pros and Cons of Socialism.

Pros and Cons of Socialism

Pros and Cons of Socialism

Socialism has its advantages and disadvantages. Some pros and cons looked at in this article include;

  • Poverty reduction 
  • Accessible health care
  • Selflessness is encouraged through its values 
  • Government benefits 
  • Better access to education 
  • Reduction in monopoly 
  • Limited exploitation of employees
  • Reduction in the number of startups 
  • Too much power to politicians 
  • Reduction in private individual investments 

Socialism and its benefit

Socialism is simply the ideology that promotes ownership and dominance of the economy by the state and the public. It emphasizes public ownership over private enterprise. In a socialist system, the public owns all the means of production — or at least, has the highest dominant control. In other words, industries such as the media, production, factories, tools and all channels of creation, are under the control of the public. The government calls all or most of the shots within this economic arrangement.

Socialism is always applauded by its supporters as making even the spread of production and access to public amenities. Although this mindset is debatable, a socialist system does make the government responsible for ensuring that the citizens under the government are well taken care of and provided for.

This total ownership spoken of in a socialist community sees ownership of resources in the form of, democracy, voluntary rule and/or totalitarianism.

Pros and Cons of Socialism

Pros of Socialism

Here are some identified benefits of a socialist system. These benefits have been researched and identified in different locations practising or once practised this system of economic control. Some benefits include;

Relative reduction of poverty 

Reduction of poverty under this system can happen in several ways, one of which is the redistribution of income. The practice ensures that tax is paid in proportion to earning capacity. The higher your pay, the higher your tax, which is often seen as a fair tax balance system for all workers.

With a lot more billionaires getting tax exemptions and discovering clever means to evade high taxing, socialism curbs all this and brings everyone on a level plane on tax payment.

Assurance and availability of basic amenities

Another known benefit of socialism is the guaranteed supply of needed amenities. Since the public through the government controls the flow of resources, it ensures that amenities are evenly distributed to all demography without prejudice.

Because the government controls the supply of goods, people do not have to fear goods being hoarded, price hikes or any such monopoly that exists in the market. Prices and amenities provided by the government will be stable and available all year round.

Trust in the government

Socialism instils trust in the government. When people begin to see amenities being provided, at the pace and quantity that they can appreciate, then mindsets begin to change and associate the government with positivity.

A lot of people associate the government with making rules that only favour themselves and certain demography of the country. And as time progresses, the masses keep losing trust in their government. But with socialism, people can see progress and learn again, to trust that the government does indeed care for the welfare of the people.

Socialism creates a classless society:

What this means is that it reduces the gap between the poor and the rich. Since everyone is being provided for equally, the need to have one class lord over another is eradicated. Socialism is usually perceived as a community-based system, therefore, this helps to carry everyone along. Equal opportunities are presented to everyone regardless of their standing in society and it strives for harmony among citizens and society.

Socialism and its cons

Just as there are positive things about socialism. The system of economic government also has several drawbacks. History has repeatedly shown the failure of this system of governance in different climates and geography. One of the many occurrences is the government running out of funds for continuity or worse, embezzlement, which leads to a decline in infrastructures and provisions. Let’s take a look at some of the disadvantages of this system as seen repeatedly over time.

Incompetence in work structure:

One thing that is almost in all places where socialism has been practised is that it breeds laziness amongst workers. Because socialism focuses provision on the most impoverished sectors, there can be neglect in productivity in other areas. In a socialist system, you will find unbalanced work spread in the society since everyone is focused on being part of the production base run by the government.

It also reduces the workforce. Because most jobs are government-funded, people do not put in the required work rate and excellence needed to develop the economy to higher productivity, provided the government continues to pay them enough to cover basic needs. This structure can have a very negative impact on the production capacity and long term, on the economy of the country.

Impedes Innovation:

Innovation is one major trait that suffers in a socialist system. The goal is usually the provision of basic amenities for the masses, with little need to go over and beyond. And because the government is in charge, it only focuses on areas that are essential or within its focus. This limits the economy from experiencing other new aspects.

With the entire focus on just basic amenity provision, several there is almost no incentive for people to focus on innovation. Also, since there is no competition with the government, individuals are not encouraged to begin parallel businesses.

Manipulation reigns in socialism:

Manipulation is very paramount in this structure of governance. Because the government runs the entire economy, media and people’s perceptions can be manipulated to always favour their political ambitions and desires.


Socialism if carried out properly can create massive growth opportunities for a country or state where it is practised. The socialist system is usually a planned one focused on long-term achievements. At its base, it seeks to satisfy the needs and wants of the average citizen, making resources readily available. But this can easily be corrupted and turned upside down by self-seeking political structures. Through this article we have learned about Pros and Cons of Socialism.

Frequently Asked Questions

1. Asides from socialism, what are other economic systems that can be practised in a country?


Other systems include;

  • Capitalism 
  • Communism 

2. Who are some prominent influences on the socialist system?


Some people that influenced socialism over the years include;

  • Charles Fourier, an early french socialist thinker 
  • Edward Bellamy 
  • Pierre Lerous 
Pros and Cons of Socialism

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