The socialist mode of production It is one that is based on the social ownership of the means of production, in order to satisfy the needs of the collective. This theory was created by Karl Marx, for which it was based on the deep social inequalities and injustices that existed on the means of production.
For socialism, these means belong to everyone and for everyone, there being no individual owners. In practice, the State is the one who decides and acts as the plenipotentiary owner of the same. The work has no value, it must be voluntary and without having to establish any conditions on remuneration, because it is done for the good of society.
In the socialist mode of production, progress is associated with the degree of productivity of social work. In addition to individual material or cultural needs, individuals have social needs. In order to satisfy the latter, an effort in production is necessary..
This surplus of work must be distributed among all in an equitable way, representing a relationship of collaboration and mutual help between the workers..
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All the means of production are owned by the community (that is, by the government) and no individual can maintain private property beyond a certain limit. Therefore, it is the government that uses these resources in the interests of social welfare..
Theoretically, under socialism there is almost total equality between rich and poor. There is no class struggle problem.
The State is responsible for the basic necessities of life: food, housing, health, education, clothing and employment. These will be provided without any discrimination.
The government clearly and quantitatively defines certain objectives. In order to achieve them, the government is directly responsible for formulating plans for economic activities such as production, exchange, distribution and consumption..
In economic plans all types of decisions are made concerning the main problems of the economy.
The State has full control over the production of goods and services, so there is no competition in the market.
In this mode of production there is no private production. The government is the sole employer.
The work is assigned according to the ability and salary according to the need of the people. It is said that under socialism "from each according to their abilities, to each according to their needs".
The government has dominion over all economic activity. It owns and exercises controls over production through licenses, over consumption through production, and over distribution through direct sales of basic products in its stores..
There are two types of prices: the market price, applied to consumer goods; and accountants, which help management in making decisions about production and investments. Both operate under the strict regulation of the central planning authority..
The main merit of socialism is that it ensures social justice, income inequalities are minimized and national income is distributed more equitably and evenly..
The main factors that contribute to a rapid growth rate of the economy are the use of resources, planning and quick decisions.
In this economy, production is directed to first satisfy the basic needs of the people.
The economic planning is destined to the equitable attention of all the areas of production and of all the regions of the country. In this process, evaluations are carried out; those that are considered to be at a disadvantage with the rest receive priority attention.
Economic stability is in check, thanks to the planned nature of the economy. Because private investment is very low, economic fluctuations are minimal.
As there is market control, the State can quickly make the necessary changes to meet its objectives.
Flexibility in planning is intended to provide immediate changes to the plan, as conditions vary.
All citizens have the same opportunity to earn income. As property and private enterprise are restricted, wealth is distributed.
As there are no distinctions between individuals, there is no discrimination between them or towards them. Therefore, there is no field for class struggle.
Because the government manages all the means of production, there is no market price for the factors of production..
This implies that there is no standard way to calculate the cost of production of goods and services..
In the field of production arbitrariness occurs, since it is not based on the real needs of consumers. Consequently, there will be a misallocation of resources, making socialist production inefficient..
In this system there is no incentive through profit for outstanding workers, being occasionally rewarded with some national honor..
This causes people to lose interest in giving the best of themselves, which translates into inefficient processes.
Consumers lack options when purchasing a product, they will only be able to buy what public companies produce.
In addition to this, the State controls which companies will exist and which will be the positions that an employee may occupy.
In socialism, the State is not only a political authority, but has unlimited dominance in all areas of the nation..
The administrative burden is very heavy, due to government interference in all activities. The freedom to decide is extremely limited, which makes the processes slow and bureaucratic.
Freedom is so restricted that it doesn't seem to exist. In socialism the exploitation of the individual by another is prohibited, but since the State is the strongest, it can exploit the individual.
Production modes.
Asian production mode.
Slave production mode.
Feudal mode of production.
Capitalist mode of production.
Primitive communism.
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