Socialism

It is a type of government in which every individual in the community, state has equal share
of the various elements of production, distribution and exchange of resources. In other words,
each person through cooperation has a share of communal resources. Each person receives
and contributes according to his ability. Some of the features of socialism include: (1) There
is collective ownership of resources. (2) There is a central economic planning. (3) No choice
of consumers. (4) Equal distribution of income and (5) absence of market forces.

Merits of Socialism

1) Absence of exploitation: Each citizen has a say on how resources are managed and
contributes on the basis of individuals potentials. Everybody is given access to basic
goods whether he/she contributes or not. This reduces poverty and the same thing is
applicable to healthcare services.
2) Discrimination is disallowed: Each person/individual does what he/she enjoys best and
knows how to do. In an event where jobs are to be done and no one is available to do
them, a higher remuneration is provided or given. This is because natural resources are
protected for posterity (future).
3) Through cooperation, more could be achieved by the society rather than allowing
competition to be dominant.
4) The vulnerable group like the old people, long term sick and disabled is looked after
(taken care of).
5) There is equality in wealth and earning: This because progressive tax is used to reduce
income gap between the richest and the poorest. The money generated from the tax is
used to create jobs and training for the unemployed and poor in the society.

Demerits of Socialism

1) Dependence on cooperative pooling. Perhaps, it’s the greatest disadvantage because

people who are competitive within the state are perceived in a negative light given that,
the society expects cooperative effort of all the citizens. In summary, competitive persons
are seen as people who cause social unrest.
2) Lack of competitiveness and innovation. This form of government does not encourage or
reward entrepreneurship ventures or competitiveness. In a society where competitive
advantage is the key, socialism kicks against such spirit.
3) It breeds corruption/favouritism. The state and the central planning authority hold too
much power which they often abuse for personal interest.
4) It does not promote hard work because everybody has a job guarantee.
5) It places restrictions on the freedom of citizens. The reason is simple, citizens do not have
the power of choice when it comes to the product they want to purchase or the type of job
they want to do. Besides, ownership of private property is as well restricted.

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Communism

This form of government arose in the 19 th century when inequality was perceived during and
after the industrial revolution. The concept is traceable to Karl Marx and Fredrick Engels
who conceived a society governed by the dictatorship of proletariat, leading eventually to a
stateless society. It is a classless society where all property is commonly owned and
economic inequality not allowed. Private ownership of properties are abolished in addition to
centralization of control over all means of production.

Merits of Communism

1) Equality. It seeks to completely remove economic inequality while creating a society

where all the people would have equal access to resources and opportunities.
2) Removing class conflicts. When social classes are removed in communism, it invariably
means that, this form of government seeks to remove class conflicts and enthrone a
harmonious society.
3) Elimination of exploitation: Since communism advocates common ownership of
resources and means of production, it aims to remove exploitation of labour by capital.
4) Focus on public good: The wellbeing of the society is more essential in communism
instead of individual interest.
5) It places emphasis on education and cultural development: The essence is to empower
people and enhance intellectual growth of the citizens.
6) Strong sense of Community: Communism provides a strong sense of community and
cooperation among the citizens.

Demerits of Communism

1) Lack of individual freedom: This form of government puts a restriction on individual

freedom and choices while bringing collective effort and societal control to the fore.
2) Absence of consumer choice: This exists because the state decides what is to be produced
and distributed. Given this scenario, consumers of goods have no say as to what should
be produced and distributed.
3) Centralized power: For the mere fact that, power is centralized in communism in terms of
economy and decision making, the tendency or likelihood would be lack of
accountability.
4) Resistance to change: Communism resists change which is most likely to translate to lack
of development.
5) Economic stagnation: Communism does not encourage competition among the citizens.
Following that, it could lead to economic stagnation and inefficiency.
6) Suppression of dissent: it is common in communism to suppress opposing views and
eliminate political freedom in order to perpetuate control of power.

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7) Potential authoritarianism: when power is centralized in one place, it could lead to
authoritarianism in the system. The enforcement of strict obedience to authority at the
expense of personal freedom. Lack of concern for the wishes and opinions of others.

Differences between Socialism and Communism

Both are political and economic systems that are related but often seem confusing. They both
reject capitalism and seek for more equality and economic power given to the working class.

1) The major difference between the two forms of government is that, socialism argues for
a more gradual shifting of power from the elites to the working class with emphasis on
collective goods. Communism advocates that, the working should take over the control
of industry and production while sharing ownership of all powers collectively.
2) In socialism, there is redistribution of income through tax and benefits such as
unemployment benefits and progressive marginal income tax rates. (tax rate increases as
taxable amount increases). It moves from low to high. Individuals with low incomes pay
lower tax than those with higher. On the other hand, in communism there is equality of
income with wages set by the government.
3) In socialism, there is a mixture of public and private sector. Some private industries are
usually unaffected but may nationalize key industries such as transport, electricity while
in communism the state controls all the industries. There is a very limited role for free
enterprises. The government must give approval before new enterprises are set up.
4) Individual liberty is essential in socialism because the state protects free speeches and
human right while in communism, it is authoritarian. In another context, the state
ignores liberty and crack down on dissents and criticisms (penalize those who disagree
with it).
5) Socialism makes use of financial institutions system but tries to reform them while in
communism; there is state control of banks and finances.
6) In socialism, trade unions and right to strike are recognised including minimum wage
while in communism, trade union are not allowed to operate, no right to strike for any
reason because the employer is the government itself.