5 reason why socialism does not work

Explanation:

First, socialism eradicates private property and markets and thus eliminates rational calculation.

Second, socialism allows soft budgets, so there is no mechanism in place to discard inefficient production methods.

Third, abolishing private property and replacing it by the state distorts the incentives.

Four, the socialist system with its absence of private property and of free markets inhibits the economic coordination of the system of division of labor and capital.

john maynrd keynes developed new economic respose to the                           ( b. great depression if the 1930's)