By // Kenni Rivas
- Socialism takes the ownership, responsibility, and benefits of resources and the means of productions out of the hands of the elite few and puts them under the collective hands of the people. Contrary to popular belief, this actually increases the quality of goods produced, etc. After all, are you going to work harder to produce a better product or service to make someone else rich or for your own company of which you have a vested interest? With socialism the workers themselves own the companies, resources, and means of productions so they have a very real connection and vested interest in the well being of said companies, etc.
How It Works
Socialist economics refers to the economic theories, practices, and norms of hypothetical and existing socialist economic systems. Where markets are utilized for allocating inputs and capital goods among economic units, the designation market socialism is used. When planning is utilized, the economic system is designated a planned socialist economy. Non-market forms of socialism usually include a system of accounting based on carculation in kind or a direct measure of laber time as a means to value resources and goods
The term socialist economics may also be applied to analysis of former and existing economic systems that call themselves "socialist", such as the works of Hungarian economis janos karnaj.
Socialist economics has been associated with different schools of economic thought. Marxian economics provided a foundation for socialism based on analysis of capitalism, while neoclassical economics and evolutionary economics provided comprehensive models of socialism. During the 20th century, proposals and models for both planned economics and market socialism were based heavily a synthesis of neoclassical economics with Marxian or institutional economics.