Demerits of Socialism:1. Bureaucratic Expansion:
A socialist economy is functioned under a centralized command and control system. People here work out of terror of higher authorities. It does not provide any initiative for the people to work hard.2. No Freedom:
There is no freedom of occupation. Allotment of factors of production is not completed rationally. Jobs are given by the State. Place of work is also given by the State. The consumer’s selection is very restricted.3. Absence of Technology:
Work is dull and no freedom is provided. Any change in the production procedure will alter the whole plan. Therefore any innovation can’t be easily enforced. Everything is firm and technological modifications are limited.4. Absence of competition made the system ineffective.
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