COMMUNISM AND SOCIALISM•INTAN IZZANNA BINTI MARSUL •NUR SHAHEERA BINTI MOHAMED SALEH •NUR ‘IZZATI BINTI ABU BAKAR •NUR AZLIN SURIANI BINTI MAMAT

SOCIALISMDEFINITION•A theory or system of social organization based on the holding of all property in common, with actual ownership ascribed to the community or state.

•Key proponent- Karl Marx, Fredrich Engels, Vladimir Lenin, Leon Trotsky.

GENERAL GOAL OF SOCIALISM To maximize wealth and opportunityTo minimize human suffering through public

control of industry and social services. The means and profits of production are

privately held.

CHARACTERISTIC OF SOCIALISMIn socialism means of production are owned

by the stateEconomic activities are planned by the

central planning authorityAbsence of competitionEqual opportunites to allNo economic freedom to the people

ADVANTAGES OF SOCIALISMGrater welfare- in social economy, there is less

inequality of income as compared to capitalist economy because of the absence of private ownership of means of production. In socialist economic system every one works hard and paid as per his skills and ability

Absence of business fluctuations- superior to a capitalist economy that is free from business fluctuation.

Economic growth-a planned socialist economy functions right according to the plan in a systematic and orderly manners and marches rapidly on the road of economic progress

DISADVANTAGES OF SOCIALISMElimination of individualism- lack of economic

freedom, everything is controlled by a centralized body. Individuals are not allowed to own any assets, everything belong to state.

Economic Equality- Socialists claim more equal distribution of wealth but practically it is proven that complete economic equality is virtually impossible. Since it is a planned economy the poor suffer even more.

An artificial system- since it is a planned economy, every aspect of the economy is to be determined by the government. Do not apply the forces of demand and supply.