Question

explain how competition is eliminated in a socialistic economy ?​

Answer 1

Answer:

THE economists and theorists of all Socialist schools of thought agree in the denunciation of capitalist competition and of its laissez-faire apologists. But behind this unanimity in denunciation can be discerned wide differences in approach and argument, differences which finally come into the open when any Socialist school tries to look beyond capitalist society and to answer the question whether Socialism itself is compatible with any form of competition. The different answers given to this question reflect broader differences between the various visions and conceptions of Socialism.

Perhaps the most crucial theoretical controversy over this subject took place between Marx and Proudhon more than a century ago. Proudhon saw Socialism essentially as a "free association" of small property owners, of independent producers owning their means of production. It was natural for him to envisage the economic activity of such a society in terms of competition.

Answer 2

A socialist economy is a system of production where goods and services are produced directly for use, in contrast to a capitalist economic system, where goods and services are produced to generate profit (and therefore indirectly for use). So where profit comes into play everybody wants to get their hands on it and in socialistic economy where govt has control its for greater good of people so it eliminates competitive feeling and only focuses on betterment of society