Special Considerations

Socialism sounds more compassionate, but it does have its shortcomings. One disadvantage is that people have less to strive for and feel less connected to the fruits of their efforts. With their basic needs already provided for, they have fewer incentives to innovate and increase efficiency. As a result, the engines of economic growth are weaker.

Another strike against socialism? Government planners and planning mechanisms are not infallible, or incorruptible. In some socialist economies, there are shortfalls of even the most essential goods. Because there's no free market to ease adjustments, the system may not regulate itself as quickly, or as well.

Equality is another concern. In theory, everyone is equal under socialism. In practice, hierarchies do emerge and party officials and well-connected individuals find themselves in better positions to receive favored goods.