UPSC IAS Mains Exam General Studies Paper-I Complete Study Notes with Practice Questions by Prasad Rajendra

Author:Prasad, Rajendra [Prasad, Rajendra]
Language: eng
Format: epub
Published: 2019-06-13T16:00:00+00:00

Demerits of Socialism: A socialist economy has several drawbacks:

Loss of Consumers' Dominance: Researchers have observed that there is loss of consumer's dominion in a socialist approach. Consumers do not have the liberty to buy whatever commodities they want. They can consume only those commodities which are available in department stores. Often the quantities which they can buy are fixed by the state.

No Freedom of Occupation: It is also found that people do not have liberty of occupation in such a society. Every person is provided job by the state. But he cannot leave or change it. Even the place of work is allotted by the state. All occupational movements are sanctioned by the state.

Malallocation of Resources: In socialist, there is random allocation of resources. The central planning authority often commits mistakes in resource allocation because the entire work is done on trial and error basis.

Bureaucratic: A socialist economy is considered as rigid economy. It is operated like a machine. Therefore, it does not provide the necessary initiative to the people to work hard. People work due to the fear of higher authorities and not for any personal gain or self-interest.

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