Merits and demerits of the Socialist economy:
Merits:
1. Resources are used in the interest of society rather than the private interest.
2. There an end to class struggle.
3. Economic resources are utilised in the best manner.
4. Economic equality is established.
5. There is an end to the problems of unemployment and exploitation.
Demerits:
1. There is dominance of bureaucracy.
2. Dictatorship of party.
3. Inefficiency and lack of production.
4. Lack of economic incentives and motivations.
5. Red-tapism and nepotism.
6. Lack of freedom.
