What is a socialist economic system?

A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production is carried out directly for use rather than for profit.

What is socialism based on?

Socialism is an economic and political system based on collective ownership of the means of production. In a socialist system, all legal production and distribution decisions are made by the government. The government also determines all output and pricing levels and supplies its citizens with everything from food to healthcare.

How does socialism work?

Under Socialism, any surplus or profit resulting from these citizen-owned means of production is shared equally by those same citizens. Key Takeaways: What Is Socialism? Socialism is an economic, social, and political system based on public rather than private ownership of a country’s means of production.