Collectivism is an ideology that views the needs of society as being more important than the needs of individuals. Collectivism translates into an advocacy for state intervention in economic activity and, in the case of communism, a totalitarian dictatorship. Individualism is an ideology that emphasizes the primacy of individuals' freedoms in the political, economic, and cultural realm.
Individualism translates into an advocacy for democratic ideals and free market economics.
Democracy and totalitarianism are at different ends of the political spectrum. In a representative democracy, citizens periodically elect individuals to represent them and political freedoms are guaranteed by a constitution. In a totalitarian state, a party, group, or individual monopolizes political power, and basic political freedoms are denied to citizens of the state. In a market economy, prices are free of any controls and private ownership is predominant. In a command economy, central planners set prices, productive assets are owned by the state and private ownership is forbidden.