The term socialism has been used in different senses by different thinkers and scholars. it has come to mean all things to all man. in this form of economic organisation, the production and distribution of goods and services is carried on by the state all the state owned Agencies. all the property, capital and wealth is owned by the state. it owns, manages and controls all the production units. it decides the size direction of investment all efforts are made to establish such a social order in the economy in which the fruit of production are shared and enjoyed by maximum number of people.
According to Shumpeter "socialism is an institution in which the control over means of production is vested with the control authority or in which as a matter of principle the economic affair of the society belong to the public not to the private sphere"
According to Dickinson "socialism is an organisation of society in which the material means of production are owned by the community and operated by organs representative of and responsible to the community according to a General plan All the member of community being entitled to benefit from the result of the socialist plant production on the basis of equal right."
features of socialism
- Central economic planning :- in a socialist economy all the important decisions are taken by government. for this purpose, a planning commission is set up. Planning Commission prepare the plan and implement them decision regarding production, costs, prize, wages etc. are taken by planning commission and not by the market forces of demand and supply.
- lack of competition :-socialism lacks competition because almost all the resources of production are owned and regulated by government. all the wastages of competition are prevented.
- End of class struggles:-socialism put an end to class struggles. all the people get equal opportunity to work and equal and umuneration for their work. it minimise income inequalities which is in itself and and of class struggles.
- subordination of individual interest to social interest :-fundamental principle of socialism is maximum social welfare. all the important economic decisions are taken keeping in view the social interest and welfare good and services are produced and distributed on the basis of social need and not on the basis of profits.
- importance of human values :-socialism recognise human values main criteria of socialism is "man is not for wealth but wealth is for man" human value are preferred to material value.
