Question

what are disadvantages of socialist economy

Answer 1

Some of the disadvantages of a socialist economy include less competition, reduced incentive to work and reduced prosperity. Socialism is a system that emphasizes cooperative economic management and state ownership of the means of production.

Answer 2

Disadvantages of socialism include:

 slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.

 Critics of socialism claims that it creates distorted or absent price signals, results in reduced incentives, causes reduced prosperity, has low feasibility, and that it has negative social and political effects.

 Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moral rights, which are central to their conceptions of freedom and liberty