Page 473 - Sociology and You

Chapter 13 Political and Economic Institutions
How is socialism thought to benefit society? Socialist theory points to important benefits for workers. Workers under capitalism receive wages below the value their labor produces and have little control over their work. In theory, workers under socialism should profit because both the state and the workplace exist for their benefit. As a result, workers should be able to exert significant control over both their work organizations and the policy di- rections of the society as a whole.
Does socialism work this perfectly? Cases of pure socialism are as rare as cases of pure capitalism. Strict socialist systems have not been suc- cessful in eliminating income inequalities nor have they been able to develop overall economic plans that guarantee sustained economic growth. In the so- cialistic economy of the former Soviet Union, for example, some agricultural and professional work was performed privately by individuals who worked for a profit. Significant portions of housing were privately owned as well. Managers received salaries that were considerably higher than those received by workers, and managers were eligible for bonuses such as automobiles and housing. Private enterprise existed in Poland under Russian communist rule. Service businesses, such as restaurants and hotels, had a significant de- gree of private ownership. Hotels, in fact, were typically built and managed by multinational chains. Because Poles could travel abroad, they formed business relationships, learned about capitalist methods, imported goods to fill demand, and brought back hard currency. They then used the hard cur- rency earned abroad to create private businesses (Schnitzer, 2000).
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Socialism works, but
nowhere as efficiently as in the beehive and the anthill.
Laurence Peter U. S. business writer
Sweden has a socialist government. What types of market relationships would you expect to find there?
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