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TOPIC: SOCIALISM PREPARED BY : PUTERI NURUL FARHANA ABD AZIZ PREPARED FOR: MADAM KHALILAH BT IBRAHIM
Socialism Especially Influenced by Adam Smith Wealth of Nations, 1776 Laissez Faire Economics Government does not interfere with business --hands off
WHAT IS SOCIALISM?
Socialism:
A political and economic theory that a countrys land, transport, natural resources and chief industries should be owned and control by the whole community or by the state, and the wealth should be equally distributed.
SOCIALISM
Socialism
does not have a common meaning. Different people include different things in it. However the basic thinking is the same, i.e.; the government should have control over economic activities, and private ownership of land and capital abolished or put under tight restrictions. Bridge between Capitalism and Communism
SOCIALISM DEFINITION
Dickinson
defines it as, Socialism is an economic organization of society, in which the material means of production are owned by the whole community and operated by the organs, representative of, and responsible to the community, according to a general plan; all members of the community are being entitle to have equal benefit from the resulting production.
SOCIALISM TERMINOLOGY
The
term Socialism or Socialist can refer to several related things: An ideology or a group of ideologies, a state that exists or has existed. In Marxist theory: the society that would succeed capitalism, and then develop further into communism.
HISTORICAL BACKGROUND
Industrial Revolutions Threw thousands of handcraft workers into the labor Market Crowed slum were established around the factories Crimes, disease, hunger and misery were a way of life Industrial accident and no compensation for families No Rights of wage earner Union were illegal
SOCIALISMS PRINCIPLES
Egalitarianism(equality) Humankind will be unified and cooperative Wealth owned in common, used for the common good Capitalism exploits the very people who create societys wealth. Moralism Division of rich and poor is evil
OWENS IDEOLOGY
People
are formed by their environment Created better living conditions Businesspeople are not enough concerned with their employees Provided better hours, wages, benefits
EXAMPLE OF COUNTRY
People's Republic of China (since October 1, 1949) Republic of Cuba (since January 1, 1959) Lao People's Democratic Republic (since December 2, 1975) Socialist Republic of Vietnam (officially in reunified Vietnam since July 2, 1976, but in the North since 1954) Democratic People's Republic of Korea (since September 9, 1948
SOCIALISM
Government
individuals own and operate means of production Private owners provide people with goods and services Individual owners make decisions
( representing people) owns and operates means of production Government determines needs of the people Government plans the economy
TYPES OF SOCIALISM
Utopian
Social Justice Better allocation of resources Improving productive efficiency Social security and welfare
Economic stability
ADVANTAGES OF SOCIALISM
In
environments with plentiful resources, socialism provides all members with their survival needs, creating a stable social environment. Members that cannot participate economically - due to disabilities, age, or periods of poor health - can still impart wisdom, emotional support and continuity of experience to the system.
DISADVANTAGES
Since
there is no culling and no economic advantage to working harder, socialistic systems provide no inherent incentive to participate. This makes socialism internally unstable. Due to a lack of incentives, socialistic systems tend not to be competitive, making them externally unstable.
Misallocation
Loss
of resources
Economic
Concentration