Authors note: Socialism is an ideology that advocates that the means of production should be owned by the community as a whole rather than the capitalists.

Socialism is a societal system in which property, natural resources, and the means of production are owned and controlled by the state rather than by individuals or private companies. A basic belief of socialism is that society as a whole should share in all goods produced, as everyone lives in cooperation with one another.

S. Michael Houdmann's claim: In the socialism Marx envisioned, the people own everything collectively, and all work for the common good of mankind. Marx’s goal was to end the ownership of private property through the state’s ownership of all means of economic production. Once private property was abolished, Marx felt that a person’s identity would be elevated and the wall that capitalism supposedly constructed between the owners and working class would be shattered. Everyone would value one another and work together for a shared purpose. Government would no longer be necessary, as people would become less selfish.

There are at least four errors in Marx’s thinking, revealing some flaws in socialism. First, his assertion that another person’s gain must come at another person’s expense is a myth; the structure of capitalism leaves plenty of room for all to raise their standard of living through innovation and competition. It is perfectly feasible for multiple parties to compete and do well in a market of consumers who want their goods and services.

Second, Marx was wrong in his socialist belief that the value of a product is based on the amount of labor that is put into it. The quality of a good or service simply cannot be determined by the amount of effort a laborer expends. For example, a master carpenter can more quickly and beautifully make a piece of furniture than an unskilled craftsmen can, and therefore his work will be valued far more (and correctly so) in an economic system such as capitalism.