A Smith''s free-nonintervention policy at eightennth centry is belived that everyone can be become happy. Even if people act for self-centered, the society can keep the establishment by market mechanism. And Smith called it "Invisible hand of God". But actuly that free-nonintervention policy generate the big social issue like recurrent depression and huge gap between the rich and the poor. How we resolve such issues.
Two resolution is considered. The first one is modify or reform capitalism, the second one is deny capitalism and then generate the new socialist society. Keynes choosed modifed capitalism and Marx choosed Socialism.
Marx proved by his book called "capital" about how capitalism system has incoherence institution. It is natural thing that for people to break the capitalism system and try to generate new system, if "recurrent depression" and "huge gap between the rich and the poor" are happen by the reason of capitalism system. Threfore the new system called Socialism was generated in 19 century to make people happy by resolveing paradox of capitalism. People believe that they realize free and equality society without depression and poor by Socialism. And then at 1927, it was happen Rossia revolution, Soviet socialist state was generated firstly in the world. And the grand experiment of the centry started that Socialism can make people happier than Capitalizm.
The feature of Socialism is three point. Firstly goverment change national property(land and factory) from private property. It meens that it try to remove capitalist to promote the equality of income distribution for resorving bankruptcies and unemployment issue. You can image that all workers are public employee. Secondly goverment try to handle planned economy by themself. They can control something how many we make and what we make and how much we sold. threfore they can avoid depression and inflation. Thrd people should pursue social benefit not private profit. Threfore they can recover the delight of working.
Was The Realization Of Socialism( example of Former Soviet Union )
People live in Capitalizm society have a lot of negative image about Socializm. But Socializm society also has some positive point like no Rich-poor gap and no depression and no unemployment, no infrastructure and extensive social welfare and cheap public fare.
Why Was Soviet Union Collapse
Socialism exactly had overcomed the lack of Capitalizm. Nevertheless Why Socialism not go well. In 1991 Soviet Union was collapsed by bellow next three reason.
1.Falling economic growth rate
Marx thought that people would work with delight for everyone even if they make the society to pursue social benefit not for private benefit. But actualy worker's motivation was so lower. It is not strange thing that there are so many worker who don't try to work seriously if their salary is not change wherther they work hard or not. Centrlized planned economy generate a huge bureaucracy system, it makes them stagnant innovation and significant inefficiency.
2.Suppression of Political Freedom
Essence of freedom is that we can object against the power of the state. We can say that country is free as we have the freedom to criticize power.