socialism is a post commodity economic system meaning that production is carried out to directly produce use value (to directly satisfy human needs, or economic demands) as opposed to being produced with a view to generating a profit. The stage in which the accumulation of capital was viable and effective is rendered insufficient as the socialist stage of social and economic development leading to a situation where production is carried out in
dependently of capital accumulation in a supposedly planned fashion. Although Karl Marx and Friedrich Engles understood planning to involve the input and decisions of the individuals involved at localized planning by Marxist Leninists during the 20th century however, there vane been other conceptions of economic planning, including decentralized planning and participatory planning.
In contrast to capitalism, which relies upon the coercive market forces to compel capitalists to produce use values as a by product of the pursuit of profit, socialist production is to be based on the rational planning of use values and coordinated investment decisions to attain economic goals. As a result, the cyclical fluctuations that occur in a capitalist economy will not be present in a socialist economy. The value of good in socialism is its physical utility rather than its embodied labour cost of production and exchange value as in a capitalist system.
Socialism would make use of incentive based systems, and inequality would still exist but to a diminishing extent as all members of society would be worker-owners.
This eliminates the severity of previous tendencies towards inequality and conflicts arising form ownership of the means of production and property income accruing to a small class of owners and the method of compensation and reward in a socialist society would be based on an authentic meritocracy along the principle of “from each according to his ability to each. According to his contribution.
However, the advanced stage of socialism, referred to as “upper stage communism” in the critique of the Gotha programme. Is based on the socialist mode of production but is differentiated from lower – stage socialism in a few fundamental ways, while socialism implies public ownership (by a state) apparatus or cooperative ownership (by a worker cooperative enterprise).
Social relations in the study of SOCIALIST
The fundamental goal of socialism from the view of Marx and Engels was the realization of human freedom and individual autonomy. Specifically, this refers to freedom from the alienation imposed upon individuals in the form of coercive social relationship as well as material scarcity. Whereby the individual is compelled to engage in activities merely to survive (to reproduce his or herself). The aim of socialism is to provide an environment whereby individuals are free to express. Their genuine interests, creative freedom, and desires unhindered by forms of social control that force individuals to work for a class of owners who expropriate and live off the surplus product.
Finally as a set social relationships, socialism is defined by the degree to which economic activity in society is planned by the associated products so that the surplus product produced socialized assets is controlled by a majority of the population through democratic processes.
The sale of labour power would be abolished so that every individual participates in running their institution as stake holders or members with no one having coercive power over anyone in a vertical social division of labour (which is to be distinguished from a non-social, technical division of labour. Which would still exist in socialism,).
The incentive structure changes in a socialist society given the changes in the social environment, so that an individual labours’ work becomes increasingly autonomous and creative. Creating a sense of responsibility for his or her institution as a state holder. The individual is no longer alienated from his or her work. Work becomes a means by which the individual fulfills his or her humanity (pursues his or her interest).
In summery the main concept of the Marxian theory is the labour theory of value, the commodity nature of production and the classes and class struggle in the capitalist economy where the first two seeks to explain how profit system works and how the working class is exploited under the system.
In capitalism, wealth takes the form of an immense accumulation of commodities. And the Karl Marx theory of socialism is concerned with the mode of production where the sole criterion for production is use – value and as a result, the law of value no longer directs economic activities but characterized by the working – class effectively.
The Karl Marx understandings of history and society have been adopted by academics in the disciplines of archeology and anthropology, media studies, political science, theater, History, Sociological theory, art history and art theory, cultural studies, education, economics, geography, literacy criticism aesthetics, critical psychology and philosophy are now very necessary when considering economic theories.