What is socialism? This question may come up to you often especially when you are browsing the Internet. Well, it is nothing surprising really because socialism has been around for ages. Before socialism, there existed the type of capitalism. In capitalism, the wealth is owned by a few.
The problem with the capitalism and what is socialism is that it does not benefit the common masses. socialism on the other hand provides a sense of ownership to the people. It is fair because the government takes care of the common welfare. This sense of community ownership is what is at stake when you talk about what is socialism.
A socialist system is one where ownership is controlled by the community. A democratic socialist system is the opposite of a communist state. A democratic socialist system provides equal opportunities to all, because wealth is distributed equally. If there are any wealthy families in a democratic socialist country, their wealth will be shared equally amongst all. What is socialism to a poor person?
A socialist economy involves a mixed economy of a mixed class of individuals and businesses. A socialist economy is characterized by minimal regulation of business by the federal government. For instance, a socialist government may nationalize all banks but a capitalist economy may have some restrictions on banking activities.
There is no middle class in a socialism economy because the concept of socialism means an end to the rich and famous. A small elite who have money to invest will own most of the country while anyone who lives in a rural area or a poor area will live off the land. This class of people is referred to as a “rust belt” which refers to the rusting of America’s economy. Today the United States is one of the most diverse societies in the world with almost half the population living in what is known as a “rust belt”.
A socialist economy is characterized by extensive use of state-run healthcare system, extensive schooling system, state-funded colleges and universities and higher taxation levels than in the private sector. The state controls all natural resources, thereby ensuring that a socialist society will have a huge natural resource base. The reason why there is less competition in the private sector of businesses is because of the high level of state intervention and control. As a result, products that would be highly successful in the private sector are not as successful in the socialist sector of businesses because they do not have the state backing behind them. In the private sector, competition is limited to consumers and small businesses that cannot afford to hire millions of employees and purchase billions of dollars worth of goods and services to sell.
Unlike what many people believe, what is actually taught in colleges today are not what is taught in socialism. When discussing what is or isn’t capitalism and communism, there is not necessarily a simple black and white answer. Individual property ownership is not always equated with socialism. For example, both capitalism and communism encourage public ownership, but there are fundamental differences between the two. Private ownership is what provides the majority of income and wealth for society as a whole, whereas communism results in economic equality without any real effort on the part of the people. Communism is also extremely wasteful, as most citizens would agree.
A true alternative to both capitalism and communism is what is commonly referred to as “socialism”. What is socialism? It is the combination of capitalism and public ownership to create an abundance of wealth. This wealth is then used to create a better standard of living for everyone, which eliminates poverty and hassles. Contrary to what most people believe, what is commonly understood to be socialism is not limited or banned by the government. Private ownership is allowed, as is religion and freedom of speech.