How Do Socialist Principles Affect Financial Markets?

[Suba]

Socialism refers to a political-economic system adopted by a country/government in which the means and resources of production, distribution, and trade are owned and controlled by the government, with the goal of reducing income and wealth disparities.
In practice, socialism can manifest itself in various forms, such as high taxes on the wealthy and corporations, strict market regulation, and government control of key industries.
So, fundamentally, government policies adopting a socialist ideological system can change the landscape of financial markets.

 

[Springtime]

I think basically, socialist countries such as China can manipulate the financial market and the economic resources. It is a completely different game from capitalist countries.

 

[Suba]

I think basically, socialist countries such as China can manipulate the financial market and the economic resources. It is a completely different game from capitalist countries.

As far as I know, for the past decades, China has not practiced pure socialism, but rather resembled a Chinese version of capitalism. This is evident in the wealth of many lower-class people who have become wealthy and have improved living standards.

 

[Augusta]

It does slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.