Socialism is a political, economical and social system which states ” government ownership of the means of production”. This system was evolved in the twentieth venture for the equal distribution of the wealth among the countrymen. Socialism mostly depends on centralized planning, ” the forceful substitution of governmental plans for individual plans“. The society has to obey government planning. Two common events in socialism are,
1.Government Ownership: In this kind of system the government own all the companies like public works departments, police, firefighters, garbage collection, schools, electric, natural gas, and water utilities, transportation services and land and so on.
2. Centralized Economic Planning: The socialist government needs to plan for society. Then countrymen have to obey the government decision in all circumstances.
3. No Democracy: In a socialist country, people cannot choose their government and the head of the nation has the ultimate power to take all the decision regarding society.
4. Welfare Programs and Subsidies: The government-run many welfare programmes for the people and the subsidies are given to the poor to alleviate poverty and enhance quality.
5.“Progressive” Income tax: Government imposes a heavy tax on the rich people. In that way, the state tries to punish the capitalist and high wage earners.
6. Minimum Wage Law: Both old and novice employees get minimum fix wage in socialist countries.