Definition Of Socialism

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Socialism: What It Means Socialism needs to be clearly defined because the meaning of socialism gets confused with many other different classes of economic systems. The main mistake people make about socialism is that people confuse it with communism. Some people even think it is part of a capitalist form of economics. A good example of a socialist government, is the government of Cuba. In Cuba, the government owns the businesses, however the state hires the employees. As stated by Richard Dagger and Terence Ball in their article on Britannica.com about the origins of socialism, “The origins of socialism as a political movement lies in the Industrial Revolution. Its intellectual roots, however, reach back almost as far as recorded thought—even …show more content…
One way these economic systems are alike is that they all have something to do with how economies are regulated. Capitalism has individuals owning the business resources; however, socialism has the community, or state, owning the business resources. Feudalism, which was part of medieval times, was nobles holding land for the king, and mercantilism was the monarchies regulating international trade to create a monopoly of trade. Socialism is unique because it is in between capitalism and communism as far as how businesses and the economy are run. In a socialist economy the means of production, or the regulations of production, are controlled by the community, such as the state, instead of a group of individuals, which means the state has a lot more control over how the product is produced, how much of that product is produced, and what the product is made of. The state also has more control over how the product is distributed, which means that the state could decide who transports the product and how, which could save the state money by choosing a company that they favor and could cut the state deals. The state could also decide the mode of transportation used. The state would have more control of where these products can be purchased as well. In the event that an individual or group of people own a business, the state or federal government would have complete regulation of the

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