Pros and Cons of Socialism, Essay Example

Introduction

Socialism is a political philosophy embodying economic relationships defining social ownership of the means of production and cooperative management of the economy. Social ownership is established by governments enacting laws prohibiting individual ownership of property, wealth or any other economic resource inclusive of cash in the bank accounts (Schumpeter, 2008).

Cooperative management entails designing structures to function as cooperative ventures. These include housing groups, enterprises to manage social services; cooperative banking systems and state ownership of resources. Political scientists argue that the socialism practiced in many nation states reflects state capitalism to a great degree rather than an equal distribution of wealth as the true philosophy intends (Marx & Engels, 2002).  As such, in this discussion analyses pertaining to the pros and cons of socialism from a philosophical perspective will be embraced.

Advantages of socialism (Pros)

The Marxian (2002) interpretation of socialism as he saw it in his society was that there should be more equitable distribution of wealth in the social environment. People must not be forced to work from 9’oclok, all day for another person and paid a meager wage at the end of a week or two weeks. For Marx (2002) a liberal society should improve citizens’ life chances to wealth by accessing means of production. This he felt was achievable only through regulating how owners of production managed the means of production (Schumpeter, 2008).

Therefore, in developing a system of social control moving wealth from the hands of a few rich people creating more opportunities for the masses this was achievable. A great advantage of utilizing a socialist philosophy is that it is very adaptable and governments can modify procedures based on their personal ideological paradigms.

Another aspect of the philosophy advocates articulate to their advantage and much favored by the masses relates to dispersing power from a few to many cooperative structures in the society. This is in direct opposition to capitalism. Marx believed that when this power is diverted class structures disintegrate and the need for industrial action becomes less evident since there is a more satisfied and less stratified society (Schumpeter, 2008).

Consequently, the ideology originating from a socialist philosophy is its economic implicationof reconstructing a society’s value for wealth. Goods and services are produced for use-value rather than profit. Production is geared towards utilizing naturalresources from the environment in creating a use-value. This means less importation of services and goods from other nation states. Hence, capitalistic profit influences such as rent, interests’ rates have modified interpretations (Marx & Engels, 2002).

Precisely, the major economic frame work determining the success of socialism as a political method of administration lies in its ability to execute a planned self-managed economy, which is state directed and practices the principles of market socialism (Marx& Engels, 2002).

Disadvantages of socialism (Cons)

Despite how well-meaning was Marx (2002) and all other socialist philosophers’ socialism still has not gained significant acceptance in modern societies. It is more perceived as being in antagonism to capitalism and imperialism,which are super world power economic forces. Critics of socialism advance from an economic standpoint that private ownership of property and wealth is consistent with their right and freedom to pursue ventures that wouldenhance personal life chances to wealth. Cooperative ownership of the means of production and the market exchange principles embodied in socialism practices are considered unethical and a contravention of human rights. They contend that cooperatives and economic planning are infringements upon liberty (Zoltan & Young, 1999).

Neoclassical school of economics critics contends that state-ownership and centralization of capital kills entrepreneurship in the society. It also hinders the individual’s initiative to design survival strategies on their own. Further, they advocate that it reduces the economic welfare of society. The premise lies in institutions restraint in responding adequately to needs due to government hard budget constraints to ownership of the means production (Zoltan &Young, 1999).

Austrian school economist had their input in the argument to content  that socialist systems emerging from economic planning are unrealistic since  they do not provide enough the information to conduct economic calculation. Primarily, there are no price signals in a free price system to initiate such practices. They believe that this which pertinent to basic economic science. As such, the economic premise for socialists’ practices does not make any rational economic sense (Zoltan &Young, 1999).

Further criticism of socialism is that in many cases it turns out to be state capitalism in practiced by moving economic power from individualstransitioning into cooperative groups and eventually state ownerships of wealth. It appears to be an ‘animal farm’ philosophy many contend since people in these societies do not have any better life chances (Zoltan & Young, 1999).

Conclusion

The foregoing discussion embraced a philosophical analysisof advantages and disadvantages of the socialism paradigm. Karl Marx’s (2002) interpretations of what he perceived to be a liberal society was explored. His assumptions were noted realizing that most modern societies do not function in this way. Speculations are that for a modern society these assumptions may just be out of date.

References

Marx, Karl ; &Engels.The Communist Manifesto. Penguin Classics. 2002. Print.

Schumpeter, Joseph. Capitalism, Socialism and Democracy. Harper Perennial. 2008. Print

Zoltan J. Acs & Bernard Young. Small and Medium-Sized Enterprises in the Global Economy. University of Michigan Press. 1999. Print