The socialist economy has several benefits for its society. However, it also has some negative effects. What is one reason that a socialist economy is often criticized? The government orders too many goods to be made, which causes people to have excessive amounts of material goods and to be wasteful with all of their surplus.

There is too much competition between various companies that are trying to maximize their profits.

There are too many technological advances, and the citizens can’t keep up with the constant innovation.

There is slow development because governments move slowly around planning and approval.