Socialism

Socialism is defined by state ownership, rather than private ownership, of the means of production (natural resources and infrastructure). In addition, the state must be controlled democratically by its citizens. Control over the means of production as well as the distribution of goods and services may be placed into cooperative ownership and may involve a degree of centralized economic planning. A socialist ideology emphasizes that the economy is to be managed for the benefit of the majority of people instead of for the benefit of a few groups of people. Economic cooperation, rather than economic competition, is promoted by socialist views. The term socialist sometimes is used specifically in reference not to an actual state (country) but rather to a type of economy or society.

Many types of socialism have emerged based on differing views related to how socialist systems are to be achieved (e.g., revolution, reform, some combination of the two); how a state is to manage the means of production; whether or not the state system should be a direct democracy or a representative democracy; whether the economy should be a totally socialized one, a mixed economy that includes some features of a capitalist economy, or something in between; and whether injustice in current systems is caused by problems in the distribution of goods and services or by ownership of the means of production being in the hands of a few.

Karl Marx argued that a socialist society, in which industrial workers (rather than an elite capitalist bourgeoisie) would be dominant, was the logical and revolutionary follow-up to capitalist systems and a precursor to communism. In his view, the socialist society would enable the state to wither away and be replaced by a classless communist society.

The former Soviet Union and its sphere of influence in Eastern Europe had socialist economies insofar as the means of production and most of the economy were controlled by the state. However, because the Communist party monopolized control of the state and people in those places had little or no democratic influence on the government, some would argue that the Soviet Union was not structured around a truly socialist economy. In addition, some might argue that the Soviet elite who controlled the economy only continued the trend of the pre-Soviet, tsarist-era capitalist class to manage the economy predominantly for their own benefit.

Some capitalist countries implement socialist policies in sectors of strategic interest to the populace. Examples of such policies include the nationalization (or state control) of defense, the postal service, and even critical industries such as airlines and steel production. Other socialist policies involve worker representation in corporate decision making and in profit-sharing opportunities. Services such as social welfare and insurance for unemployed citizens are other socialist policies.