Chapter 2.4, Problem 1R

To determine

To Discuss: The importance of:

• Socialism
• Proletariat
• Communism
• Democratic socialism
• Authoritarian socialism

Explanation of Solution

Proletariat refers to those people who move from one place to another in search for daily earning. These are the people who earn their everyday living and they don’t have any regulation part in manufacturing process, for example like; those labor class people who work daily. They perform most of the work in some competitive economies, as they have minor or no control over their work-lives or over the income that they produce.

Communism generally refers to the controlled planned actions by the government under which normally all the resources are planned and executed by the government. Under this situation the people or consumers are treated equally on the basis of their knowledge and their skills not by their class or religion. Here the community refers to the government. Under communism there are certain facts and goals which best utilize and optimize the allocation of resources.

Democratic socialism refers from the statement where both society and democracy of people take place. Democracy occurs when the people of society are freely making their own decisions and they do not have to rely on others and socialism goes supportively side by side. It is based on the relative concept. As it is not pure capitalism nor pure socialism but it is combination of both. Democratic socialism is also known as ideology socialism as it is based on the fact and decisions of individual.

In Authoritarian socialism refers where there is full control by the government under political issues, under this the leader control the group of people and guided by the leader, on how to utilize the resources and maximizing their capability. Thus the main significance of authoritarian socialism is to develop the industrial sector by upgrading the heavy machinery and labor both simultaneously.

Economics Concept Introduction

Introduction:

Socialism refers to the system under which the economic system is controlled and regulated by government itself. In socialism everything in society is made by the cooperative efforts of people and citizens