• Socialist theory was refined by Karl Marxand Friedrich Engels. 
• A socialist economic system attempts to eliminate economic exploitation of the working class that emerged through the industrial revolution. 
• Thus, under socialism, means of production and distribution are owned collectivelyrather than privately. 
• Its basic objective is to meet people’s needs rather than to maximize profits. 3 
• Socialists disagrees laissez-fair philosophy.
• Instead, they think that the central government should make basic economic decision as a representative of the people.
• Therefore, government owns all major industries. 
• For the social service program, socialist countries offer government-financed medical careto all citizens. 
• In theory, the profit from collectivity is used for health care, housing, education,etc