True.
Socialism uses a planned economic model where production is controlled by the government, which holds all means of production. Thus, in this regime there is no competition or encouragement for free initiative, since everything is controlled by the state.
Socialism has virtually collapsed around the world, currently resisting in Cuba, North Korea. Nowadays, the economic regime is capitalism, where everyone can undertake and where competition benefits consumers, as producers compete for the market at the lowest price.