The characteristics of the Socialist economic system

• Prefer the togetherness (collectivism).

- Community is considered as the only social reality, individuals are fiction.
- No recognition of personal rights (individual) in a socialist system.

• The role of government is very strong

- The government is active starting from planning, implementation to monitoring stage.
- The means of production and economic policies are all regulated by the state.

• Human nature is determined by the pattern of production

- The pattern of production (the community-controlled assets) gave birth to consciousness of collectivism (socialist society)
- The pattern of production (assets individually controlled) gave birth to consciousness of individualism (capitalist society).
 
The inadequacies of socialist economic system
 
The theory of class conflict is not generally accepted
Not many cases, only occurs when the industrial revolution (medieval) and Bolsevik revolution in 1917). In India many castes, but the social revolution never happened.

• There is no freedom of choice of employment

So tehambat community creativity, productivity, production and the economy will stop.

• There is no incentive for hard work

Then there is no incentive to work better, performance and production declined, the economy retreated.

• Does not explain how the economic mechanism

     Karl Marx simply criticized the evils of capitalism, but does so no mechanism to allocate resources under socialism.



Socialist economic system is not equal to the communist economic system
- Socialism is a preparatory stage to communism.
- Communism is the final stage of social development (The Six Major Historical Stages): primitive communism slaery feudalism, capitalism, communism and full sosialism