Socialism (pronounced /ˈsoʊ̯ʃəɫɪzm̩/) is an economic system in which the means of production are publicly or commonly owned and controlled cooperatively, or a political philosophy advocating such a system. As a form of social organization, socialism is based on co-operative social relations and self-management; relatively equal power-relations and the reduction or elimination of hierarchy in the management of economic and political affairs.
Socialist economies are based upon production for use and the direct allocation of economic inputs to satisfy economic demands and human needs (use value); accounting is based on physical quantities of resources, some physical magnitude, or a direct measure of labor-time. Goods and services for consumption are distributed through markets, and distribution of income is based on the principle of individual merit/individual contribution.
Socialist economies are based upon production for use and the direct allocation of economic inputs to satisfy economic demands and human needs (use value); accounting is based on physical quantities of resources, some physical magnitude, or a direct measure of labor-time. Goods and services for consumption are distributed through markets, and distribution of income is based on the principle of individual merit/individual contribution.
