socialism paper

Topics: Socialism, Planned economy, Market socialism Pages: 5 (1608 words) Published: November 29, 2013

The effects of Socialism on a region

The United States of America is the world’s oldest surviving federation. With a constitutional republic and a representative democracy, the majority rule regulates and maintains a fair form of democracy for us Americans. Socialism, although, is an economic system where the means of production, such as money and other forms of capital, are owned by the state or public. Under a socialist system, everyone works for wealth that is, in turn, distributed to everyone. Luckily in our democratic nation, you work for your own wealth. A socialist economic system operates on the premise that what is good for one is good for all. Everyone works for their own good and the good of everyone else. The government decides how wealth is distributed among the people. While socialist ideals can be tempting; promising equality, security, and prosperity, I disagree that socialism is an effective means of economic management, as in turn delivers quite the opposite which has been clearly demonstrated throughout history. The effects of socialism are undeniably destructive, as previously observed in other nations. Some effects felt from socialism in regions around the world are the expense’s and cost of socialism, the unenthusiastic and undesirable entrepreneurship of the people, and the worst effect of all, big government. Socialism does not equate work with value. Socialism effects on economies across the globe have been particularly disastrous. By nationalizing productive assets and placing their management into the hands of officials who possess neither the competence nor the motivation to oversee them efficiently, Socialism invariably causes productivity to decline swiftly. Moreover, it causes the people at large to view themselves not as self-sufficient individuals but rather as wards of the state, dependent upon government for every aspect of their well-being, depleting potential entrepreneurs and desires. The free-market economist Friedrich Hayek has noted that only the prospect of enrichment can motivate people to exert themselves beyond their immediate needs – and that such exertion most often results in collateral benefits to society as a whole. But Socialism, by rewarding equally the worker and the slacker, kills those incentives.

To begin, socialism generally is the most costly form of government. In a socialistic economy, the government controls everything from the postal service to social welfare. Many governmental handouts believed to be practiced in socialist regions are, Universal healthcare, social welfare, government paid education, and social security; all that feed a socialistic economy by the means of the citizen’s pocket. With a common living standard, and every citizen with free range of handouts, costs rise to all-time highs. As the government handouts are raised and become available to every person, the debt ceiling must also be raised, in time driving a nation into a pit of debt. An effect and issue of socialism is that the expense, driven by production of expensive mechanics, ceases jobs and put working class out of work. Taxes are raised in socialistic regions so that the government can accommodate every citizen with the standard of living. For example, in France the wealthy pay, on average seventy-five percent of their income in taxes. Socialism benefits the few at the expense of the many; it is almost like an extremely expensive insurance policy that dramatically cuts into ones quality of life. Increased government intervention and higher taxes are tell-tale symptoms of socialism. Some examples of socialistic effects in previewed socialistic regions are the costly medical system. It is not only slow evolving medical research but continues to cost tax payers more annually. Taxed currency and other government money are used to pay medical costs for everyone, insuring high prices, higher taxes, and ensured misery. Some effects of the costly socialistic government are...
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