3 Defects of Socialism

1.   Promotion of Mediocrity:  This kind of economic system promotes mediocrity as government positions are filled on political consideration rather than ability.  Hence, government operations are inefficient.

      

2.  Lack of Incentive to Hard Work:  Another defect of socialism is that it takes away the element of entrepreneurial risks or incentives that motivate business people.  This is because, under socialism, people who work hard and prosper must share with those who don’t work so hard or don’t have such well paying jobs.

      

3.   Higher Unemployment Rates: Socialism has failed to create the wealth or jobs characteristics of capitalism.  As a result, unemployment rates are comparatively higher in socialist countries.