Social Democracy

Socialism

Socialism describes an economic organization of society with collective ownership of resources and institutions. In practice, socialism is less an absolute concept and more a continuum of possible configurations. To the extent that nations have more collective ownership of resources and institutions, they are more socialist. Both socialism and communism advocate collective ownership of the means of production. However, socialism tends to refer to ownership by the government (sometimes called state socialism), while communism refers to direct ownership by the people.

Direct ownership of resources by the people is more an ideal than a reality. While under the final development of communism, the state (and state ownership of resources) withers away. The reality is that most self-identified communist governments maintain totalitarian, top-down governance structures where resources are controlled by the state. However, both communism and socialism advocate collective ownership of resources.

Socialism is sometimes portrayed as a balance between capitalism and communism. Where capitalism leaves most economic decisions to individuals, under socialism those economic decisions are made by the collective. While capitalism relies on free enterprise to facilitate the most efficient allocation of resources, socialists argue that capitalism results in inequality, suffering, and the loss of human dignity. A truly equitable society can only be achieved through a collective ownership and administration of resources. As described in the following sections, social democrats advocate a policy mix of the two perspectives.

Finally, a common differentiation between socialism and communism involves the use of violence to achieve power. Communism advocates the revolutionary overthrow of current structures, asserting that only through force will capitalistic institutions surrender power. Most socialists and all social democrats call for a more evolutionary and peaceful transition to collective ownership and believe economic structures can be changed through democratic institutions. In addition to its advocacy of peaceful transition, social democracy does not completely reject liberalism and a market economy.

Democracy

While democracy means rule by the people or demos, it does not address resource ownership. All policy issues are arrived at through the democratic process, leading to the possibility of inequitable social and economic policies chosen through a democratic political process.

For large aggregations of people (such as states), democracy normally means representative democracy, which can be pursued through a variety of electoral systems. A political approach to democracy focuses on the formal decision-making structure rather than the content of policies or how they are implemented. While representational democracy specifies rule by the people, it does not limit the decisions people will make. While liberal democracy may preserve some individual rights and civil liberties, social democracy presupposes egalitarian economic and social welfare policies within a liberal democratic structure.

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