Topics: Socialism, Capitalism, Communism Pages: 4 (792 words) Published: February 16, 2015
Gabriela Flores Flores 1
Jody LeFevers
February 7, 2015
1. What is the system of economic structure? How does it look?
Socialism is an economic system in which the means of production are socially owned and used to meet human needs instead of creating profits. That means the production refers to the tools, technology, buildings, and other materials used to make the goods or services in an economy. Social ownership of the means of production can take many forms. It could refer to cooperative enterprises, common ownership, direct public ownership, or autonomous state enterprises. Social ownership contrasts with capitalist ownership, in which the means of production are used to create a profit. In a socialist economic system, the means of production would instead be used to satisfy economic demands and human needs. Accounting would be based on physical quantities or a direct measure of labor-time instead of on profits and expenses.

Although socialism is often related with Karl Marx , it has evolved to take a variety of forms. As a political movement, socialism includes a diverse pattern of political philosophies, ranging from reformism to revolutionary socialism, from a planned economy to market socialism. In a planned economy, the means of production are publicly owned and the government which is in charge of coordinating and distributing production. In market socialism, the means of production may be publicly or cooperatively owned, but they operate in a market economy. That is market socialism uses the market and monetary prices to give and account for the means of production and the products they create. Just like in capitalism, the means of

Flores 2
production generate profit; however, that profit would be used to grant employees or finance public institutions, not to benefit private owners.
Socialists critique capitalism, arguing that it collects wealth from a system of labor, for the personal...

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