√ Understanding Socialist Economics in the Economic System (Complete)

September 27, 2023
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Understanding Socialist Economics in the Economic System (Complete) – The economic development of capitalism and liberalism has invited many critical opinion reactions from various parties. This reaction is not only in the form of theoretical debate, for example recently there has been a lot of debate about understanding of socialist economics.

Understanding Socialist Economics in the Economic System (Complete)

This socialist economy is also influenced by a form of political movement. This socialist economy was influenced by several groups. The position of the state bourgeoisie is also used as a coercive force and tool to regulate economic and political organizations.

However, not everyone is happy with what the bourgeoisie is doing. The existence of the teachings of capitalism under the bourgeoisie presented new thoughts by socialist economic experts.

Understanding Socialist Economics in the Economic System

Understanding socialist economics often put forward by socialist economists. One of them is the view of Karl Heindrich Marx (1818-1883) which is considered the most influential. When viewed from a theoretical perspective, socialist economic experts admit that Marx's arguments have a very broad meaning. Because, the theory put forward is not only based on economic views, but also involves morals, ethics, social, political, historical, philosophical and so on.

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History of the Socialist Economic System

Understanding socialist economics is an economic system that has the aim of achieving shared prosperity. The socialist economic system also has a philosophy of how to achieve prosperity. The development of socialism started from criticism of capitalism carried out by the bourgeoisie.

This is what made Karl Marx criticize the capitalist system as an economy that is incompatible with social aspects. Because, according to Karl Marx there is no place for capitalism in life, revolutionary efforts must be made carried out to destroy capitalism, the means of production must be controlled by the State in order to protect it people.

A socialist economic system is a system in which all economic activities are planned, implemented and supervised by the government centrally. This socialist economic system is not the same as the communist economic system.

This socialist economic system is the stage towards preparation for a communist economic system. Below are several factors that support a socialist economic system, including:

Factors Supporting a Socialist Economy

There are also factors that support a socialist economic system, namely:

There was an industrial revolution.
The existence of the bourgeoisie (employers) and the proletariat (workers)
The emergence of new, more rational thinking.
There were demands for the implementation of democracy as a result of the French Revolution
Karl Max was a prominent critic of capitalism in Europe and a rouser of workers' resistance to capitalism, as well as the author of a discourse that became the basis for the formation of a socialist economic system.

Apart from the supporting factors of a socialist economic system, the following are the characteristics of a socialist economic system, including:

Prioritize togetherness
Society is considered the only social reality, while individuals are mere fiction. There is no recognition of personal (individual) rights in the socialist system.

The government's role is very strong
The government's role is to act actively, for example starting from planning, implementation to the monitoring stage.
because the means of production and economic policies are all regulated by the state.

Human nature is determined by production patterns
The existence of production patterns produces an awareness of collectivism or a socialist society. On the other hand, production patterns that produce awareness of individualism will produce a capitalist society.

There is no freedom to choose work for each individual. So that people's creativity is hampered, productivity decreases, production and the economy will also stop.
There is no incentive to work hard, because there is also no incentive to work better, achievement and production decline, the economy goes backwards.
It does not explain the economic mechanism, because Karl Marx himself only criticized the evils of capitalism, but did not explain the mechanism that allocates resources under socialism.

Basic principles of the Socialist Economic System

The socialist economic system has several basic principles as follows:

Ownership of Property by the State All forms of production and sources of income belong to society as a whole. So the individual's right to own property or utilize production results is not permitted.
The socialist economic system states that individual rights in an economic field are determined by the principle of equality. Each individual is provided with the necessities of life according to their individual needs.
Level of political discipline. To achieve the above goals,
the whole country was placed under the rule of the workers, who took over all the rules of production and distribution. Economic freedom and property ownership rights were abolished. And several rules that apply are very strict to make the practice of socialism more effective. This shows that there are no stricter efforts to regulate people's lives, then The sustainability of this socialist system will not be ideal as envisioned by Marx and Lenin and Stalin.

Advantages of a Socialist Economic System

The following are some of the advantages of a socialist economic system, including:

all economic activities and problems are controlled by the government so that it is easy for the government to supervise the running of the economic process.
There is no gap, especially in the economic sector, between the poor and the rich.
The government can also easily regulate goods or services according to community needs,
It is easier for the government to intervene in price formation.

That's our discussion about Understanding Socialist Economics in the Economic System (Complete), May be beneficial to us all

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