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economic system where factors of production are owned by the public; operate for welfare of all; created to offset the ill effects of industrialization; grew out of optimistic view of human nature, belief in progress, concert for social justice; Marxism: type of socialismsignificance: argued that the government should plan the economy rather than depend on free-market capitalism to do the job; believed that public ownership (the government owns things) would help workers, end poverty, promote equality
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