Socialism may be comprehended as economic theory , where by the state takes care of productive activities.
This theory was propounded by karl Marx in 1881-1883.
He is of the view that the state will perform on behalf of the state impartial and creates jobs without fear of favor. Many countries of the world has embraced this ideology, countries such as Rusia and China.
Features of socialism .
Means of production. This economic system only recognizes the state as the only institution which has the control over production and distribution of goods and services .
Employment .socialism provides gainful employment opportunities for all citizens.
One sole party: one one political party operates in this political system.
Competition .This political system does not allow competition as it enjoys monopoly.
Uniformity in price : the prices of goods and services produced by the state are always in uniform.
Production. Production is mainly embarked upon to satisfy the needs of the people and not for profit .
This economic system has multifarious merits and advantages .this advantages was what made many countries of the world to adopt it.
Job security. There is no fears of undue loss of job, because the state creates jobs and employment to all citizens.
Unhealthy rivalry. It removes unhealthy rivalry , this is because only the state takes care of all production.
Resources. The state equitably distributed among all citizens.
Industrial harmony. It ensures industrial harmony because the conditions of service of workers are uniformly determined by the state.
Exploitation. The tendency of exploit is eliminated in the system.
It also has some demerits and disadvantage.
Such as ,
No competition: the absence of competition affects the quality of goods and services been produced by the state.
Monopoly: this affects entrepreneurs as only the state engages in productive activities.
Economic development is always at a very low ease .
Division of labour :Division of labour and specialization is not encouraged by the state in a bid to avoid competition.
Absence of choice: the choice to selection among alternatives is not allowed by state, this affects citizens because they will be left with no option than accepting the things produced by the state.