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Socialism is an ideology that places great emphasis on eliminating, or reducing, the disparity between social classes, largely through the more equal distribution of resources, including property. Variations of socialist thought have existed for hundreds of years, evidenced by Plato's Republic and even the Book of Acts in the New Testament. In a socialist society, the means of production are owned and controlled by the community as a whole. In a capitalist society, however, the resources and businesses are owned and operated by private parties. Furthermore, at the heart of capitalism is the belief in a free market that operates with minimal restrictions.

This entry will briefly examine current versions of socialism, followed by a review of socialism through modern history, and will end with an assessment of the status of socialism today.

Socialism Today

Despite the fact that North Korea and Sweden both have socialist governments, they are at opposite ends of the spectrum in terms of their political applications of socialism. In North Korea, a socialist country since 1948, all means of production are state owned. Furthermore, it essentially is a totalitarian dictatorship, where the single ruling party quells all forms of dissent, thus alienating the regime from democratic world powers. North Korea's socialist state has also been plagued with difficulties. It has experienced widespread poverty and famine since the end of Russian subsidies in the 1990s.

Socialism in Sweden, however, is characterized by relative prosperity within a multiparty, democratic state and a mixed economy. Sweden, a socialist country since World War II, differs from North Korea in that most business enterprises are privately owned. Socialism in Sweden focuses more on providing social welfare services than on communal ownership and control of the means of production. Northern European socialist movements are often called “social democratic” to indicate their gradualist social welfare agenda and compatibility with democratic values and institutions. To better understand the variations between countries such as Sweden and North Korea, it is necessary to have some historical background on the socialist movement.

Response to European Industrial Revolution

Socialism emerged in Europe in the early 1800s, largely in response to the failings, or perceived failings, of the Industrial Revolution. The Industrial Revolution began in Great Britain. Technological innovations, such as the creation of the steam engine in the 1780s, were applied to both manufacturing processes and to new means of transportation. The factory system, coupled with the development of large and complex railroad networks by the 1840s, dramatically enhanced Britain's productive and distributive capacity. Britain's competitive advantage was expressed in the rapid expansion of its international trade, both inside and beyond its colonial empire.

While Great Britain advanced into the industrial age, the rest of mainland Europe lagged behind. The French Revolution and subsequent Napoleonic Era (from the 1790s to 1815) fostered political, social, and economic instability, thus impeding industrial development on the continent. The working class, and its defenders, grew increasingly frustrated with the industrialized society that gradually enveloped them. It was in this context of rising discontent with unfettered capitalism that socialism gained popularity.

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