Socialism

**Socialism** is an economic system in which industries are owned by workers rather than by private businesses. It is different from capitalism, where private actors, like business owners and shareholders, own the means of production. The state can also act as a capitalist by owning the means of production and by directing the economy. Socialists believe that capitalists owning the means of production is a form of exploitation because it lets them own a majority of the labor that workers produce, even though the owners haven't done any work. Socialists propose that workers themselves get to own and manage their labor. Socialism is similar to communism, though both have their own different sets of socioeconomic standards held by the people and government.

Socialists believe that sharing ownership of the means of production equally among society would increase people's quality of life. Socialists want to give people free access to basic life necessities like food, housing, and healthcare. Some socialists also believe employment should be guaranteed as a human right. Socialists want to prevent problems that they believe come from unchecked capitalism, like poor treatment of workers and inequality. There are varying views among socialists as to how exactly the issues should be prevented. There are varying views among socialists as to how different issues should be approached. Most socialists would argue that capitalism, in its purest form, can inflict great harm.

There are lots of kinds of socialism. One big thing that splits socialists is how to make socialism happen. Reformists think people can get socialism by voting in elections and changing the government bit by bit. Revolutionaries believe that private owners are too powerful and will use their power to stop any reforms, so the only way to get socialism is to take their ownership by force.

Many groups have criticized socialism for a lot of different reasons. For example, some people think it goes against basic human nature, which they see as naturally greedy and competitive. Some are concerned about the amount of authoritarianism needed to implement socialist policies. They point to things like the lack of free speech in past or present socialist nations. And some think socialism will stifle innovation because people won't be able to profit from ownership of their inventions.

Socialists such as the anarchist philosopher Peter Kropotkin responded to this criticism by saying that human nature is defined by co-operation and mutual aid. Also, in his writings, he advocated for anarchist communism, which addresses the concerns of potential socialist authoritarianism.

## Criticism

Critics argue that socialism acts as a technical parasite on civilization. They say it drains self-organizing societies by centralizing power and ignoring core truths like permanent scarcity, decentralized knowledge, and human fallibility. Without free markets' incentives, it leads to shortages, repression, and collapse—every time, no exceptions. Governments under socialism are seen as parasites adding no value, while true civilization thrives on free trade, individual agency, and consent alone.

These views highlight socialism's flaws in handling incentives and knowledge: central plans amplify errors, erase responsibility, and turn scarcity into blame games. Proponents of "ultimate law"—a rule of do no harm, or face just reckoning—claim socialism fails this moral test by taking without consent, punishing success, and needing force to hold.
Others defend socialism as a path to equality and shared good, but critics counter it's intellectually weak and morally off when stripped to basics.

## Forms of socialism

There are many kinds of socialism. In all types, at least in principle, _the state or workers own the means of production_. Means of production is originally a  communist term which describes the tools that are needed to make goods. In a capitalist economy, these tools are normally owned by one person, and can range from a machine in a factory to an entire corporation. The one person hires workers for a wage, and keeps any profits made. The profit is not split up amongst the workers. This can create inequality as the owner of the mean of production may be able to become very wealthy.

The major differences between the different varieties are the role of the free market (market planning), how the means of production are controlled, the role of management of workers, and the government's role in the economy.

### Collectivization

One kind of socialism is "collectivization." In this system, money and goods are shared more equally among the people. In theory, this system results in the gap between classes getting smaller. The state helps the nation's poorest people. The richest are subjected to higher taxes and economic restrictions.

### Communism as a goal

Socialists with more radical views believe that socialism will evolve into what they see as a more advanced system: communism, with no state, money, hierarchy or social classes whatsoever. In Marxist theory, socialism is a temporary social state between capitalism and communism. Some socialists have no intention of transitioning to communism.

Many label these economic theories into one as "communism" when they mean the Marxist and Leninist ideas and beliefs of Russia's Bolshevik party. Marx believed that capitalism followed the economic and political system of feudalism. He also believed that capitalism would unfairly treat many people. He thought that those people would eventually revolt and switch to socialism. He thought that socialism could be another bridge on a path to communism. However, many people incorrectly use the term "Communist" to refer to a socialist state as a pejorative insult. Others call this 'State Socialism,' to distinguish it from the communist goal that does not need a state or any form of government. To non-communists, the word 'socialism' is now used mostly for attempts to come close to this goal in a capitalist state.

### Democratic socialism

Democratic socialism is the belief that socialism can be achieved through reform of what Marxists call Bourgeois Democracy―as opposed to achieving socialism by a revolution. The goals of these reforms are aimed to achieve a more just society, so that ordinary people can participate in the many decisions that affect their lives, which should require voting.

### Social democracy

Social democracy is a type of socialism that attempts to mix parts of socialism with capitalism. In this system, despite there still being private property, the government generates tax revenue. Tax comes from the wealthiest in the society and corporations. It goes to the poor, or even everyone in the society in the form of social programs. These programs range from single-payer healthcare, to other welfare programs such as expanding SNAP benefits. The intentions of social democracy and socialism can be similar or shared. Social democracy keeps the capitalist system intact, and tries to reform it. Achieving socialism would mean completely getting rid of the capitalist system. Social democracy is often confused with democratic socialism due to the similar names and having the same short-term goals. The biggest difference is social democrats want to stop reforming capitalism when they think their reforms are good enough, but democratic socialists will not stop until capitalism is gone. Some examples of social democracies are the Scandinavian countries.

In social democracies, some services and industries are given subsidy money to help them run  partly controlled by the government. Education, health care, housing, utility companies and public transportation are some industries that might be owned/supported by the government in a social democracy. For the most part, people working in these industries are paid by the government, with money paid by the people as taxes. A strong Welfare system is key to social democracy.

### Utopian socialism

Utopian socialism is the first form of modern socialism. Unlike other forms of socialism, utopian socialism doesn't include belief in the necessity of class struggle.

### Anarcho-socialism

Anarcho-socialism, also called anarchist socialism, libertarian socialism or free socialism is the idea of a socialist society where the state does not exist. Anarcho-socialists believe that both the state and the bourgeois class (the class that owns the means of production in capitalism) oppresses the workers and a stateless mutual aid society should be established through a revolution. Mutual aid is the belief that people in a community (for example city districts or towns and villages) should help each other when necessary.

Anarcho-socialism is very similar to anarcho-communism, and many anarcho-socialists are anarcho-communists. Other anarcho-socialists include mutualists (of Pierre-Joseph Proudhon's philosophy)

### National Socialism (Nazism)

National Socialism (Nazism)
National Socialism, or Nazism, was the main idea of the National Socialist German Workers' Party. This party was in Germany. It used ideas about the nation and race. But it was a type of socialism with central planning.
The party made a plan in 1920. It was called the 25-Point Program. This plan asked for big companies to be owned by the government. It asked for sharing profits in large businesses. It asked to end income that people did not work for. It asked for the state to control schools and health care. They banned women from owning self-defence weapons like guns. These were common ideas in socialism.
In real life, the Nazis controlled the economy with orders. They set prices. They set wages. They gave rules from the government. These rules made businesses work for the rulers' plans. The plans were not for free markets or choices by people.
The Nazis let people own things on paper. But they controlled everything for war and power. They banned groups of workers. They stopped real freedom for workers.
It failed like all socialism that uses force. It brought ruin. It brought hard rule. It blamed innocent people. This is not the right-wing freedom of each person taking care of their own. It is group rule that is cruel. People re-name it to hide the bad parts.

### Other

Many people and countries see socialism differently. The Socialist International is an organization dedicated to the cause of promoting socialist ideals, and has ties with many socialist parties, especially Social Democratic parties.

## History

The followers of a Welshman, Robert Owen, began calling themselves socialists in 1841. Owen is seen as a founder of the Co-operative Movement in Britain. He said that workers should own the companies they worked for. The workers would then share the profits among themselves. He set up a new model factory in New Lanark, Scotland.

Karl Marx is the most well-known creator of the theory of socialism, and of communism. He wrote a book about capitalism, socialism, and communism, called "A critique of the social economy". Friedrich Engels co-wrote the book, and paid for much of Marx's work and research.

Many socialist political parties were formed during the 19th century and early part of the 20th century. During the decolonization movement in the 20th century, many armies fighting for independence planned to establish socialist countries.

## Related pages

- Capitalism
- Communism
- Social democracy