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What Is Socialism? ? Socialism is an economic and political philosophy based on the idea that the benefits of economic activity (wealth) should be equally distributed throughout a society. ? Socialist nations can also be democracies, but still have centralized planning to achieve these aims. ? Socialists emphasize cooperation & social responsibility as ways to achieve a more equitable distribution of both income and opportunity. ? The Industrial Revolution ? The Industrial Revolution were the great social changes that swept western nations as they moved from and agricultural to an industrial economy. Socialism was developed out of the Industrial Revolution. ? Cities expanded rapidly during this time and large factories replaced smaller home-based industry. ? Karl Marx, “the father of modern day socialism. ” ? The most significant critic of capitalism to emerge in the nineteenth century. ? Engels and he wrote The Communist Manifest, which was a political document that oppressed workers across Europe to free themselves from “capital enslavement” (referring to the Industrial Revolution). Socialists and Communists. ? A strong socialist movement took shape among European workers and thinkers during the middle and end of the nineteenth century. ? Communists were considered, those who argued that a socialist society could come only out of “violent and bloody revolution. ” ? Characteristics of Socialist Economies ? Nationalization is one of the characteristics of economies. ? Nationalization is the process of placing enterprises under government control, often by taking over privately owned industries. Often times, governments have nationalized industries without paying any compensation. ? Public Welfare is another characteristic of economies. ? Socialists aim to guarantee the public welfare by providing for the equal distribution of necessities and services. ? Welfare states are countries that provide extensive social service at little or no cost to the users. ? Taxation is another characteristic of economies. ? ALL governments in capitalist and socialist states get their funds from taxation. Tax rates can amount to 90% of a wealthy person’s income. ? Centrally Planned Economy is another characteristic of economies. ? A capitalist economy is also called a market economy. ? Government bureaucrats plan how an economy will develop over a period of years in a centrally planned economy. ? Socialism in Developing Countries. ? Developing countries are starting from scratch at building industry. ? Large existing industries are often owned by foreign countries. ? Persistent instability is a persistent problem in developing nations. This instability is one reason that socialist and other governments often turn to authoritarian methods. ? Few developing nations have been successful in establishing the democratic versions of socialism. ? Pros and Cons. ? Critics say that socialist countries have a tendency to develop too many layers of bureaucracy. ? Also, critics say that socialism deprives people of freedom to decide for themselves how to use their income. ? Socialists reply that it is fairer to supply everyone with basic needs, such as medical care.