What is socialism?
Quick answer
Socialism is a set of ideas in which major industries and resources are owned or controlled by society as a whole, through the state, cooperatives or workers, to share wealth more fairly. Forms range from strict state ownership to democratic socialism within a market economy.
The word became common in the 1830s in Britain and France, as thinkers reacted to the poverty and harsh working conditions of the Industrial Revolution.
Key ideas
- Collective or public ownership of major industries and resources
- Reducing inequality in income and wealth
- Production for need, rather than mainly for profit
- Strong public services, such as healthcare and education
Main types
| Type | Core idea |
|---|---|
| Utopian socialism | Early 1800s ideal communities (Robert Owen, Charles Fourier) |
| Marxist socialism | Karl Marx saw socialism as a stage between capitalism and communism |
| Democratic socialism | Pursue socialist goals through elections and democratic institutions |
| Social democracy | Keep a market economy but add strong welfare and regulation |
| Market socialism | Publicly or worker-owned firms competing in markets |
Socialism, communism and capitalism
| Capitalism | Socialism | Communism (as theorized by Marx) | |
|---|---|---|---|
| Who owns production | Private owners | Society, the state or workers | The whole community |
| How goods are distributed | Markets | According to contribution, often with welfare | “According to need” |
| Role of the state | Limited to varied | Significant | Expected to “wither away” |
Read more about what communism is.
In practice
Countries have mixed these ideas in very different ways. The Nordic countries combine market economies with extensive welfare states, which many describe as social democracy rather than socialism. Some countries, such as the former Soviet Union, used the word for systems with a one-party state and central planning.
The debate
Supporters argue socialism reduces poverty and inequality and protects workers. Critics argue it weakens incentives, concentrates power in the state and has led to economic failure in some countries. Many debates in modern politics are about how much of a mixed economy should be public or private.
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