Dismissal would mean loss of sustenance. The government could be strict in the guidance of the young. The authorities could also forbid strikes and treat shirking as sabotage. How could Schumpeter go so wrong? Of course, there is his personality to be taken into account, a personality that speaks of contradiction, of being pulled in different directions, of living passionately in diverse countries and cultures. People who know central Europe only from hearsay will be confused by this strange man.
Some have said that he was a snob trying to feign aristocratic roots; they do not understand what it was to be a traditional Austrian gentleman. Some marvel at the number of languages he spoke, but a central European would be thought uneducated if he did not know many languages, including Latin if he was born before World War I.
Some think he tended to show off his intelligence and erudition; in Continental Europe it is not done to hide your light under a bushel. Also, the fastidious gentleman that he was did not hold democracy in high regard and thought that the working class lacked self-discipline. There is no contradiction in the History but the result of keeping to the definition of what the task of economists should be: to use the set of neutral instruments discovered by economists through the ages for the analysis of the problems and policies of each time and place.
The History focuses on telling how those instruments were slowly fashioned and whence they came. I now also think that deciding to write on the development of economic analysis rather than the history of economic thought is the symptom of a much deeper mistake. A passage in the methodological introduction to the book will make my thesis clearer. Examples of these gadgets are the. And it is the sum total of these gadgets […] which constitutes economic theory. In Mrs. History of Economic Analysis, page One could ask, where have the multiplier and the accelerator gone?
The discarding of these two gadgets may indicate that the point of economics is not fashioning of tools but discovering the laws and regularities of society. As I say, Schumpeter saw the advance of economic knowledge as the slow discovery and definition of these neutral analytical instruments, which could then be applied to different problems or situations. In this way,. Schumpeter is thus content with analyzing social problems with his box of tools and tries to harbor no preconception as to what the results of given policies or institutional reforms will be.
For him, those preconceptions simply constitute the pre-scientific view or Weltanschauung of the different economists and it is not very productive to try to tell one from the other. The consequence of his formal conception of economics is that at bottom he is indifferent to the various ways of organizing social affairs.
Now, there is another conception of economics that is not merely formal or instrumental. It sees economics as a systematic effort to discover reality. In the field of economics the profession has accumulated knowledge that is substantive and allows us to predict with some confidence the effect of certain policies or institutions. It would be easy to give examples in microeconomics: think only of the interesting results of Gary Becker and his followers in the application of economics to social questions, such as the war on drugs, or the size of families, or gains from education.
Even in the field of macroeconomics, under a cloud at present because of the late financial crisis, we can with confidence make predictions. For example, we can predict the long term effects of persistent increases in money supply on inflation and the rate of exchange; or the beneficial effects of free trade in the reducing the number of the poor. Schumpeter reasons differently. He continuously proclaims his agnosticism as to the truth of economic theorems.
But, what if free trade, in inauspicious circumstances and against the expectations of so many, does in fact have the observable results deduced by the classical economists? Is this ideology or science? There is great confusion about the role of values in science. Of course we should not, in as far as we can, let our values, political or moral, distort our account of the facts.
But this does not mean that we cannot observe the effects of a policy in application of a theoretical conclusion. The prediction of their failure in achieving their aims and especially the measurement of the effects of such policies on the population are not a matter of personal preference. They cease then to be a matter of personal preference. It should be unnecessary to say that this does not mean that all has been done and discovered in the field of economic research.
Even the best established theories can be refuted by facts and turn out to be wrong. But over the centuries economists have accumulated a respectable amount of useful knowledge about the workings of society—quite enough to give the free market the benefit of the doubt.
Given the destructive consequences of the kind of economic philosophy he favored, Schumpeter is a thinker in need of re-evaluation. Marshall, Alfred, Principles of Economics. Library of Economics and Liberty. Joseph A. Harvard University Press Cambridge : McGraw Hill New York : See Thomas K. Business History Review 80 Summer : Harvard, Ricardo indirectly discussed the effects of commercial and technological advances in his pamphlet on the free trade in corn and in the chapter on machinery of the edition of his On the Principles of Political Economy and Taxation.
Political Economy , Routledge Classics Oxford : Liberty Fund Indianapolis : This consideration also tells neo-classical economists that they cannot model individuals as reacting mechanically to incentives. Thomas C. PDF file. It is not far-fetched to connect this fall in poverty head counts to globalization rather than to foreign aid.
A member of the Royal Academy of Moral and Political Sciences of Spain, Schwartz is a frequent contributor to European press and radio on the current financial and corporate scene. For more articles by Pedro Schwartz, see the Archive. The Riddle of Schumpeter 0. Categories: An Economist Looks at Europe. What ails the capitalist society? The pure logic of socialism. The great lie of democracy.
In certain circumstances, a volume purchaser may be able to guarantee sufficient volume to reduce overall prices while providing greater profitability to the seller, such as in so-called " purchase commitment " programs. Firstly there is a negative utility of consumption consuming more health care does not make one better off and secondly there is an information asymmetry between consumer and supplier. Paul Krugman and Robin Wells argue that all of the evidence indicates that public insurance of the kind available in several European countries achieves equal or better results at much lower cost, a conclusion that also applies within the United States.
Notwithstanding the arguments about Medicare, there is overall less bureaucracy in socialized systems than in the present mixed U. Spending on administration in Finland is 2. Some in the U. The quantitative evidence for this claim is not clear. The WHO has used Disability Adjusted Life Expectancy the number of years an average person can expect to live in good health as a measure of a nation's health achievement, and has ranked its member nations by this measure. But the U. Finland, with its relatively high death rate from guns and renowned high suicide rate came above the U.
The British have a Care Quality Commission that commissions independent surveys of the quality of care given in its health institutions and these are publicly accessible over the internet. Whether these results indicate a better or worse situation to that in other countries such as the U. Opponents claim that socialized medicine would require higher taxes but international comparisons do not support this; the ratio of public to private spending on health is lower in the U.
Taxation is not necessarily an unpopular form of funding for health care. In England, a survey for the British Medical Association of the general public showed overwhelming support for the tax funding of health care. Nine out of ten people agreed or strongly agreed with a statement that the NHS should be funded from taxation with care being free at the point of use. An opinion piece in The Wall Street Journal by two conservative Republicans argues that government sponsored health care will legitimatize support for government services generally, and make an activist government acceptable.
Every time a tax cut is proposed, the guardians of the new medical-welfare state will argue that tax cuts would come at the expense of health care -- an argument that would resonate with middle-class families entirely dependent on the government for access to doctors and hospitals. Others point out that the American health care system spends more on state-of-the-art treatment for people who have good insurance, and spending is reduced on those lacking it  and question the costs and benefits of some medical innovations, noting, for example, that "rising spending on new medical technologies designed to address heart disease has not meant that more patients have survived.
One of the goals of socialized medicine systems is ensuring universal access to health care. Opponents of socialized medicine say that access for low-income individuals can be achieved by means other than socialized medicine, for example, income-related subsidies can function without public provision of either insurance or medical services. Economist Milton Friedman said the role of the government in health care should be restricted to financing hard cases.
For example, European countries with socialized medicine in the broader sense, such as Germany and The Netherlands , operate in this way. A legal obligation to purchase health insurance is akin to a mandated health tax, and the use of public subsidies is a form of directed income redistribution via the tax system [ citation needed ]. Such systems give the consumer a free choice amongst competing insurers whilst achieving universality to a government directed minimum standard. Compulsory health insurance or savings are not limited to so-called socialized medicine, however.
Singapore's health care system, which is often referred to as a free-market or mixed system, makes use of a combination of compulsory participation and state price controls to achieve the same goals. Part of the current debate about health care in the United States revolves around whether the Affordable Care Act as part of health care reform will result in a more systematic and logical allocation of health care.
Opponents tend to believe that the law will eventually result in a government takeover of health care and ultimately to socialized medicine and rationing based not on being able to afford the care you want but on whether a third party other than the patient and the doctor decides whether the procedure or the cost is justifiable. Supporters of reform point out that health care rationing already exists in the United States through insurance companies issuing denial for reimbursement on the grounds that the insurance company believes the procedure is experimental or will not assist even though the doctor has recommended it.
Opponents of reform invoke the term socialized medicine because they say it will lead to health care rationing by denial of coverage, denial of access, and use of waiting lists, but often do so without acknowledging coverage denial, lack of access and waiting lists exist in the U. There is a frequent misunderstanding to think that waiting happens in places like the United Kingdom and Canada but does not happen in the United States.
For instance it is not uncommon even for emergency cases in some U. Statistics about waiting times in national systems are an honest approach to the issue of those waiting for access to care. Everyone waiting for care is reflected in the data, which, in the UK for example, are used to inform debate, decision-making and research within the government and the wider community. Opponents of the current reform care proposals fear that U. However, when defining any group scheme, the same rules must apply to everyone in the scheme so some coverage rules had to be established.
Britain has a national budget for public funded health care, and recognizes there has to be a logical trade off between spending on expensive treatments for some against, for example, caring for sick children. This rationing does not preclude choice of obtaining insurance coverage for excluded treatment as insured persons do having the choice to take out supplemental health insurance for drugs and treatments that the NHS does not cover at least one private insurer offers such a plan or from meeting treatment costs out-of-pocket.
The debate in the U. Free access to a general practitioner is a core right in the NHS, but private insurers in the UK will not pay for payments to a private primary care physician. Chronic illnesses, such as diabetes and end stage renal disease requiring dialysis are also excluded from coverage. Palin had alleged that America will create rationing " death panels " to decide whether old people could live or die, again widely taken to be a reference to NICE. Senator Chuck Grassley alleged that he was told that Senator Edward Kennedy would have been refused the brain tumor treatment he was receiving in the United States had he instead lived a country with government run health care.
This, he alleged, would have been due to rationing because of Kennedy's age 77 years and the high cost of treatment. The chairman of the British Medical Association, Hamish Meldrum, said he was dismayed by the "jaw-droppingly untruthful attacks" made by American critics. The chief executive of the National Institute for Health and Clinical Excellence NICE , told The Guardian newspaper that "it is neither true, nor is it anything you could extrapolate from anything we've ever recommended" that Kennedy would be denied treatment by the NHS.
Hawking was British and was treated throughout his life 67 years by the NHS and issued a statement to the effect he owed his life to the quality of care he has received from the NHS. Some argue that countries with national health care may use waiting lists as a form of rationing compared to countries that ration by price, such as the United States, according to several commentators and healthcare experts. Supporters of private price rationing over waiting time rationing, such as The Atlantic columnist Megan McArdle , argue time rationing leaves patients worse off since their time measured as an opportunity cost is worth much more than the price they would pay.
The exception is that some provinces in Canada disallow the right to bypass queuing unless the matter is one in which the rights of the person under the constitution. A article in the British Medical Journal , stated "there is much merit in using waiting lists as a rationing mechanism for elective health care if the waiting lists are managed efficiently and fairly. Arthur Kellermann , associate dean for health policy at Emory University , stated rationing by ability to pay rather than by anticipated medical benefits in the U.
Some argue that waiting lists result in great pain and suffering, but again evidence for this is unclear. Some argue that wait times in the U. There is considerable argument about whether any of the health bills currently before congress will introduce rationing.
Howard Dean for example contested in an interview that they do not. However, Politico has pointed out that all health systems contain elements of rationing such as coverage rules and the public health care plan will therefore implicitly involve some element of rationing. In the UK, where government employees or government-employed sub-contractors deliver most health care, political interference is quite hard to discern.
Most supply-side decisions are in practice under the control of medical practitioners and of boards comprising the medical profession. There is some antipathy towards the target-setting by politicians in the UK.
Even the NICE criteria for public funding of medical treatments were never set by politicians. Nevertheless, politicians have set targets, for instance to reduce waiting times and to improve choice. Academics have pointed out that the claims of success of the targeting are statistically flawed.
The veracity and significance of the claims of targeting interfering with clinical priorities are often hard to judge. The proportion of these attributable to patients left with ambulance crews is not recorded. Political targeting of waiting-times in Britain has had dramatic effects. The National Health Service reports that the median admission wait-time for elective inpatient treatment non-urgent hospital treatment in England at the end of August , was just under 6 weeks, and Reported waiting times in England also overstate the true waiting-time.
This is because the clock starts ticking when the patient has been referred to a specialist by the GP and it only stops when the medical procedure is completed. The week maximum waiting period target thus includes all the time taken for the patient to attend the first appointment with the specialist, time for any tests called for by the specialist to determine precisely the root of the patient's problem and the best way to treat it.
It excludes time for any intervening steps deemed necessary prior to treatment, such as recovery from some other illness or the losing of excessive weight. From Wikipedia, the free encyclopedia. Government-run health care system. This article is about the term 'socialized medicine' as it is used in U. For national health care systems generally, see Universal health care.
See also: Health care economics. This article is written in the style of a debate rather than an encyclopedic summary. It may require cleanup to meet Wikipedia's quality standards and make it more accessible to a general audience.
Please discuss this issue on the talk page. January Learn how and when to remove this template message. See also: Healthcare rationing in the United States. Leslie, The Sociology of Social Problems , , p. Armonk, N. ISBN Michael Byrd, Linda A. Archived from the original on Retrieved Archived from the original PDF on Archived from the original on 23 April Retrieved 27 April Archived from the original PDF on May 30, The New York Times.
Two dangerous words that kill health-care reform". Archived from the original on 9 April Archived at the Wayback Machine , Harry S. The Wall Street Journal. Archived from the original on March 9, Say something too kind about single-payer and there's a Republican around the corner ready to brand you a socialist" Archived from the original on October 11, The American way is not single-payer, government-controlled anything.
That's a European way of doing something; that's frankly a socialist way of doing something. That's why when you hear Democrats in particular talk about single-mandated health care, universal health care, what they're talking about is socialized medicine. We've got to solve our health care problem with American principles, not the principles of socialism.
Archived from the original on June 6, July 31, The Tampa Tribune. Sarasota Herald-Tribune. Archived from the original on June 5, BBC News Online. September 19, Archived from the original on March 2, The Washington Post. Archived from the original on November 22, Archived from the original on January 20, Archived from the original on August 4, The Fact Checker.
Archived from the original on August 18, Columbia Journalism Review. The Times. Archived from the original on May 16, Doctors in the two countries have different philosophies for treating the disease with the US putting more emphasis on early diagnosis and surgery. An analysis of mortality rates suggests that about 25 out of , men are dying from prostate cancer each year in both Britain and the US.
Petersburg Times. Archived from the original on February 26, Archived from the original on September 25, Archived from the original on January 1, CS1 maint: archived copy as title link Webster's New World Medical Dictionary, "Single-payer health care is distinct and different from socialized medicine in which doctors and hospitals work for and draw salaries from the government. CS1 maint: archived copy as title link Uwe Reinhardt, quoted in The Washington Monthly : "'Socialism' is an arrangement under which the means of production are owned by the state.
Government-run health insurance is not 'socialism,' and only an ignoramus would call it that. Rather, government-run health insurance is a form of 'social insurance,' that can be coupled with privately owned for-profit or not-for-profit health care delivery systems. There is no definition of socialized medicine. It originated with an American Medical Association campaign against government-provided health care a century ago and has been used recently to describe even private-sector initiatives such as HMOs.
Archived from the original on June 14, M June World Bank Publications.
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Marx criticized utopian socialists for presenting ideals of an egalitarian society, while disregarding the instruments and methods necessary for these objectives to be achieved. Scientific socialism was developed in the 19th century, based on a historical and scientific analysis of capitalism.
This model of socialism is commonly known as Marxism. According to Marx and Engels, in all historical times society was marked by the class struggle. This struggle is being characterized by the antagonism between an oppressive and an oppressed class.
These classes are represented, by the private owners of capital, the owners of the means of production , and by a mass of wage earners. Marxism sees the proletariat as the only social class capable of destroying this form of exploitation of people. This would be achieved when the proletariat came to power, following a revolution. Upon reaching power, workers would eliminate inequalities, abolish social classes and make society equal.
When that happened, the transition from socialism to communism would be inevitable. In addition to proposing the elimination of social classes, scientific socialism also promotes the following:. The Paris Commune was the first attempt of establishing a socialist government. As the agreement was extremely favorable to Prussia, the working class did not agree with the contract signed and revolted against the French government.
With support from the National Guard, the working class took over Paris, establishing the Commune. The government in the commune was composed of ninety elected representatives, who followed different socialist lines, among them Marxism. Among the main measures taken were:. After the establishment of the Paris Commune, several other attempts to create communes took place throughout France. To prevent the movement from advancing, the French and Prussian governments came together to overthrow the Parisian commune.
With the support of Prussian troops, the former Paris government invaded the city and regained power. The Paris Commune was the first practical experience of socialism. In the 20th century socialist ideology was adopted by an entire country. The first nation to adopt this system was Russia, which shortly afterwards would unify with other countries to form the Soviet Union.
The socialist regime was established in Russia in , when a revolution overthrew the tsarist monarchy that prevailed in the country. After the fall of the monarchy, the Bolshevik Party , led by Vladimir Lenin , established the socialist government. It promoted ideals based mainly on Marxist principles. After the end of the confrontation, Russia was devastated and, to rebuild it, the government decided to momentarily abandon some rigid socialist principles. For example, the opening of small factories, wage disparities and foreign investment in the country.
During his regime, Stalin abolished the NEP and established the five-year plans, where the goals of the Soviet economy were set within five years. Stalin prioritized the expansion and development of the industry, in addition to centralizing several other sectors in the hands of the State. The socialist regime implemented in the Soviet Union can be considered real socialism. It is considered the first practical experience of a country that adopted features of the socialist theory.
Some of these measures were proposed during the 72 days of the Paris Commune. This was in sharp contrast to previous socialist theories that practically remained in the field of ideas. Currently, there are a few countries that claim to be socialist states, although this subject is very controversial.
Even though many of them still follow some socialist principles, the influence of capitalist ideas in their systems is notable. Check out which countries are currently adopting socialist principles. Cuba is perhaps the best known example of modern socialism. Established in the country during the Revolution, the Cuban system still maintains much of its socialist ideals. For example, the centralization of services in the hands of the State to promote an egalitarian society.
However, the country already shows many signs of a capitalist economy. For instance, its tourism industry and foreign trade, although limited by the economic embargo. Since the end of , Cuba has been engaged in a rapprochement with the United States. The country maintained a close relationship with the USSR until the s. From the s it began to incorporate capitalist aspects in its economy. North Korea emerged in , when the country was split into two different states. With an economy based on heavy industry and mechanized agriculture, the Korean system exercises tight political control.
However, the emergence of a private market is already noticeable. Recent changes allow farmers to sell the surplus of their production, as well as being able to reinvest the profits or spend it. The adoption of this and other market practices has emerged as a survival mechanism in the face of famines.
Some government officials say it is a momentary measure while the country is unable to produce the necessary consumer goods. Vietnam established a socialist regime in , after the well-known war against the United States.
In the s, the government reformed its economic policy, adopting a system similar to that of China. Thus, Vietnam, which until then had an agriculture-based economy, expanded its industrial sector, registering the greatest economic growth in Southeast Asia in recent years. After attracting foreign capital, the country became part of the Tiger Cub Economies group, even though it maintains a socialist political system.
Liberal economists and libertarians see private ownership of the means of production and exchange market as natural and moral rights. In their view these rights are essential for independence and freedom. The biggest criticisms of the socialist system are based on the distortion of the price system, which would make efficient economic planning impossible.
In addition, critics argue that, in a socialist system, there would be reduced incentives, reduced prosperity, low viability and negative social and political effects. Friedrich Hayek wrote in The Road to Serfdom that any attempt to control the economy implies a concentration of state power. In turn, the centralization of power eventually will lead to the elimination of political freedoms. Socialism is an economic system in which an individual or group of individuals controls other members of society through coercion and organized compulsion.
In their defense, socialists argue that these countries, despite considering themselves socialists, never adhered to socialism because, in practice, it never existed. There are also libertarian socialists, who favor the overthrow of private property, capital and the State. In their view this is necessary to ensure ample freedom and equality. Inspired by medieval guilds , theorists such as Samuel George Hobson and G.
Cole advocated the public ownership of industries and their workforces' organisation into guilds, each of which under the democratic control of its trade union. Guild socialists were less inclined than Fabians to invest power in a state. As the ideas of Marx and Engels gained acceptance, particularly in central Europe, socialists sought to unite in an international organisation.
In the centennial of the French Revolution , the Second International was founded, with delegates from twenty countries representing about labour and socialist organisations. Anarchists were banned, mainly due to pressure from Marxists. Not only did they effectively present themselves as champions of minority rights; they also provoked the German Marxists into demonstrating a dictatorial intolerance which was a factor in preventing the British labour movement from following the Marxist direction indicated by such leaders as H.
Hyndman ". Reformism arose as an alternative to revolution. Eduard Bernstein was a leading social democrat in Germany who proposed the concept of evolutionary socialism. Revolutionary socialists quickly targeted reformism: Rosa Luxemburg condemned Bernstein's Evolutionary Socialism in her essay Social Reform or Revolution? Revolutionary socialism encompasses multiple social and political movements that may define "revolution" differently.
The Social Democratic Party of Germany SPD became the largest and most powerful socialist party in Europe, despite working illegally until the anti-socialist laws were dropped in In the elections, it gained 1,, votes, a quarter of the total votes cast, according to Engels. In , the year of his death, Engels emphasised The Communist Manifesto ' s emphasis on winning, as a first step, the "battle of democracy".
It was the first mass party in the country and in Latin America. The party affiliated itself with the Second International. The Kibbutz Movement expanded through the 20th century following a doctrine of Zionist socialism. In February , revolution exploded in Russia. Workers, soldiers and peasants established soviets councils , the monarchy fell and a provisional government convened pending the election of a constituent assembly.
In April of that year, Vladimir Lenin , leader of the Bolshevik faction of socialists in Russia and known for his profound and controversial expansions of Marxism , was allowed to cross Germany to return from exile in Switzerland. Lenin had published essays on his analysis of imperialism , the monopoly and globalisation phase of capitalism, as well as analyses on social conditions. He observed that as capitalism had further developed in Europe and America, the workers remained unable to gain class consciousness so long as they were too busy working to pay their expenses.
He therefore proposed that the social revolution would require the leadership of a vanguard party of class-conscious revolutionaries from the educated and politically active part of the population. Upon arriving in Petrograd , Lenin declared that the revolution in Russia had only begun, and that the next step was for the workers' soviets to take full authority. He issued a thesis outlining the Bolshevik programme, including rejection of any legitimacy in the provisional government and advocacy for state power to be administered through the soviets.
The Bolsheviks became the most influential force. On 7 November, the capitol of the provisional government was stormed by Bolshevik Red Guards in what afterwards became known as the Great October Socialist Revolution. The provisional government ended and the Russian Socialist Federative Soviet Republic —the world's first constitutionally socialist state—was established.
On 25 January , Lenin declared "Long live the world socialist revolution! The day after assuming executive power on 25 January, Lenin wrote Draft Regulations on Workers' Control , which granted workers control of businesses with more than five workers and office employees and access to all books, documents and stocks and whose decisions were to be "binding upon the owners of the enterprises". The Constituent Assembly elected SR leader Victor Chernov President of a Russian republic, but rejected the Bolshevik proposal that it endorse the Soviet decrees on land, peace and workers' control and acknowledge the power of the Soviets of Workers', Soldiers' and Peasants' Deputies.
The next day, the Bolsheviks declared that the assembly was elected on outdated party lists  and the All-Russian Central Executive Committee of the Soviets dissolved it. Within this left-wing discontent, the most large-scale events were the worker's Kronstadt rebellion    and the anarchist led Revolutionary Insurrectionary Army of Ukraine uprising which controlled an area known as the Free Territory.
The Bolshevik Russian Revolution of January launched communist parties in many countries and concomitant revolutions from — Few communists doubted that the Russian experience depended on successful, working-class socialist revolutions in developed capitalist countries. The Russian Revolution influenced uprisings in other countries. The German Revolution of — replaced Germany's imperial government with a republic.
The revolution lasted from November until the establishment of the Weimar Republic in August It included an episode known as the Bavarian Soviet Republic     and the Spartacist uprising. In Italy, the events known as the Biennio Rosso   were characterised by mass strikes, worker demonstrations and self-management experiments through land and factory occupations.
In Turin and Milan, workers' councils were formed and many factory occupations took place led by anarcho-syndicalists organised around the Unione Sindacale Italiana. While industry remained largely state-controlled, Lenin acknowledged that the NEP was a necessary capitalist measure for a country unready for socialism. Profiteering returned in the form of "NEP men" and rich peasants kulaks gained power. He then moved towards democratic socialism  and anarchism.
A similar critique of Trotsky's role in the Kronstadt rebellion was raised by American anarchist Emma Goldman. In her essay "Trotsky Protests Too Much", she states, "I admit, the dictatorship under Stalin's rule has become monstrous. That does not, however, lessen the guilt of Leon Trotsky as one of the actors in the revolutionary drama of which Kronstadt was one of the bloodiest scenes".
In , the fourth congress of the Communist International took up the policy of the united front. It urged communists to work with rank and file social democrats while remaining critical of their leaders. They criticised those leaders for betraying the working class by supporting the capitalists' war efforts. The social democrats pointed to the dislocation caused by revolution and later the growing authoritarianism of the communist parties.
On seeing the Soviet State's growing coercive power in , a dying Lenin said Russia had reverted to "a bourgeois tsarist machine [ Despite the marginalised Left Opposition 's demand for the restoration of Soviet democracy, Stalin developed a bureaucratic, authoritarian government that was condemned by democratic socialists, anarchists and Trotskyists for undermining the Revolution's ideals.
The Russian Revolution and its aftermath motivated national communist parties elsewhere that gained political and social influence, in France , the United States , Italy , China , Mexico , the Brazil , Chile and Indonesia. Their abstention led to a right-wing election victory. In , the CNT changed its policy and anarchist votes helped return the popular front to power. Months later, the former ruling class attempted a coup, sparking the Spanish Civil War — In response to the army rebellion, an anarchist-inspired movement of peasants and workers, supported by armed militias, took control of Barcelona and of large areas of rural Spain where they collectivised the land.
Much of Spain's economy came under worker control. Factories were run through worker committees, agrarian areas became collectivised and run as libertarian communes. Anarchist historian Sam Dolgoff estimated that about eight million people participated directly or indirectly in the Spanish Revolution. Trotsky's Fourth International was established in France in when Trotskyists argued that the Comintern or Third International had become irretrievably "lost to Stalinism " and thus incapable of leading the working class to power.
After World War II, social democratic governments introduced social reform and wealth redistribution via welfare and taxation. Social democratic parties dominated post-war politics in countries such as France, Italy, Czechoslovakia, Belgium and Norway. At one point, France claimed to be the world's most state-controlled capitalist country. In , the British Labour Party led by Clement Attlee was elected based on a radical socialist programme. The Labour government nationalised industries including mines, gas, coal, electricity, rail, iron, steel and the Bank of England.
British Petroleum was officially nationalised in During most of the post-war era, Sweden was governed by the Swedish Social Democratic Party largely in cooperation with trade unions and industry. He led the government from to , the longest uninterrupted parliamentary government. These governments substantially expanded the welfare state.
The Norwegian Labour Party was established in and was largely a trade union federation. The party did not proclaim a socialist agenda, elevating universal suffrage and dissolution of the union with Sweden as its top priorities. Around the time of the Russian Revolution , the Labour Party moved to the left and joined the Communist International from through Thereafter, the party still regarded itself as revolutionary, but the party's left-wing broke away and established the Communist Party of Norway while the Labour Party gradually adopted a reformist line around In , Johan Nygaardsvold established a coalition that lasted until From to , the Norwegian Labour Party held an absolute majority in the parliament led by Einar Gerhardsen , who remained Prime Minister for seventeen years.
Although the party abandoned most of its pre-war socialist ideas, the welfare state was expanded under Gerhardsen to ensure the universal provision of basic human rights and stabilise the economy. It placed itself between communism and social democracy.
In countries such as Sweden, the Rehn—Meidner model  allowed capitalists owning productive and efficient firms to retain profits at the expense of the firms' workers, exacerbating inequality and causing workers to agitate for a share of the profits in the s. At that time, women working in the state sector began to demand better wages. Rudolf Meidner established a study committee that came up with a proposal to transfer excess profits into worker-controlled investment funds, with the intention that firms would create jobs and pay higher wages rather than reward company owners and managers.
Countries or political systems that have long been dominated by social democratic parties are often labelled social democratic. It has three main ingredients, namely peaceful, institutionalised negotiation between employers and trade unions; active, predictable and measured macroeconomic policy; and universal welfare and free education. The welfare system is governmental in Norway and Sweden whereas trade unions play a greater role in Denmark, Finland and Iceland.
Major reforms in the Nordic countries are the results of consensus and compromise across the political spectrum. Key reforms were implemented under social democratic cabinets in Denmark, Norway and Sweden while centre-right parties dominated during the implementation of the model in Finland and Iceland.
Since World War II, Nordic countries have largely maintained a social democratic mixed economy , characterised by labour force participation, gender equality, egalitarian and universal benefits, redistribution of wealth and expansionary fiscal policy. In Norway, the first mandatory social insurances were introduced by conservative cabinets in Francis Hagerups 's cabinet and Konow's Cabinet. During the s, the Labour Party adopted the conservatives' welfare state project.
After World War II, all political parties agreed that the welfare state should be expanded. Universal social security Folketrygden was introduced by the conservative Borten's Cabinet. Some of the mixed economy institutions from the post-war period were relaxed by the conservative cabinet of the s and the finance market was deregulated. The Soviet era saw some of the most significant technological achievements of the 20th century, including the world's first spacecraft and the first astronaut.
The Soviet economy was the modern world's first centrally planned economy. Economic planning was conducted through serial Five-Year Plans. The emphasis was on development of heavy industry. The nation became one of the world's top manufacturers of basic and heavy industrial products, while deemphasizing light industrial production and consumer durables. The Hungarian Revolution of was a spontaneous nationwide revolt against the Communist government, lasting from 23 October until 10 November Soviet leader Nikita Khrushchev's denunciation of the excesses of Stalin's regime during the Twentieth Communist Party Congress in  as well as the Hungarian revolt,     produced disunity within Western European communist and socialist parties.
In the post-war years, socialism became increasingly influential in many then-developing countries. The then-Chinese Kuomintang Party in the s incorporated Chinese socialism as part of its ideology. The emergence of this new political entity in the frame of the Cold War was complex and painful.
Several tentative efforts were made to organise newly independent states in order to establish a common front to limit the United States' and the Soviet Union's influence on them. This led to the Sino-Soviet split. The Cuban Revolution — was an armed revolt conducted by Fidel Castro 's 26th of July Movement and its allies against the government of Fulgencio Batista. Castro's government eventually adopted communism, becoming the Communist Party of Cuba in October In Indonesia, a right-wing military regime led by Suharto killed between , and one million people in and , mainly to crush the growing influence of the Communist Party and other leftist groups, with support from the United States which provided kill lists containing thousands of names of suspected high-ranking Communists.
The New Left was a term used mainly in the United Kingdom and United States in reference to activists , educators, agitators and others in the s and s who sought to implement a broad range of reforms on issues such as gay rights, abortion, gender roles and drugs  in contrast to earlier leftist or Marxist movements that had taken a more vanguardist approach to social justice and focused mostly on labour unionisation and questions of social class. In the United States, the New Left was associated with the Hippie movement and anti-war college campus protest movements as well as the black liberation movements such as the Black Panther Party.
The protests of represented a worldwide escalation of social conflicts, predominantly characterised by popular rebellions against military, capitalist and bureaucratic elites who responded with an escalation of political repression. These protests marked a turning point for the civil rights movement in the United States which produced revolutionary movements like the Black Panther Party. The prominent civil rights leader Martin Luther King Jr. In , the International of Anarchist Federations was founded during an international anarchist conference held in Carrara by the three existing European federations of France , the Italian and the Iberian Anarchist Federation as well as the Bulgarian federation in French exile.
Mass socialist or communist movements grew not only in the United States, but also in most European countries. The most spectacular manifestation of this were the May protests in France in which students linked up with strikes of up to ten million workers and for a few days the movement seemed capable of overthrowing the government. Countries governed by communist parties had protests against bureaucratic and military elites.
In Eastern Europe there were widespread protests that escalated particularly in the Prague Spring in Czechoslovakia. In response, Soviet Union occupied Czechoslovakia, but the occupation was denounced by the Italian and French  communist parties and the Communist Party of Finland. In the Chinese Cultural Revolution , a social-political youth movement mobilised against " bourgeois " elements which were seen to be infiltrating the government and society at large, aiming to restore capitalism.
This movement motivated Maoism -inspired movements around the world in the context of the Sino-Soviet split. In the s, a socialist tendency within the Latin American Catholic church appeared and was known as liberation theology   It motivated the Colombian priest Camilo Torres Restrepo to enter the ELN guerrilla.
In Chile, Salvador Allende , a physician and candidate for the Socialist Party of Chile , was elected president in In , his government was ousted by the United States-backed military dictatorship of Augusto Pinochet , which lasted until the late s.
According to opinion polls, he remains one of Jamaica's most popular Prime Ministers since independence. A coup on 15 October led to the killings of anti-coup protesters by the government as well as anti-disorder protesters by the guerrillas, and is widely seen as the tipping point towards the civil war. In Italy, Autonomia Operaia was a leftist movement particularly active from to It took an important role in the autonomist movement in the s, aside earlier organisations such as Potere Operaio created after May and Lotta Continua.
Outside Western Europe, it is sometimes called neocommunism. In the late s and in the s, the Socialist International SI had extensive contacts and discussion with the two powers of the Cold War , the United States and the Soviet Union, about east—west relations and arms control. The SI aided social democratic parties in re-establishing themselves when dictatorship gave way to democracy in Portugal and Spain After Mao Zedong 's death in and the arrest of the faction known as the Gang of Four , who were blamed for the excesses of the Cultural Revolution, Deng Xiaoping took power and led the People's Republic of China to significant economic reforms.
The Chinese Communist Party CCP loosened governmental control over citizens' personal lives and the communes were disbanded in favour of private land leases, thus China's transition from a planned economy to a mixed economy named as " socialism with Chinese characteristics "  which maintained state ownership rights over land, state or cooperative ownership of much of the heavy industrial and manufacturing sectors and state influence in the banking and financial sectors.
China adopted its current constitution on 4 December Under their administration, China's economic performance pulled an estimated million peasants out of poverty and sustained an average annual gross domestic product growth rate of The region experienced rising economic inequality and poverty  a surge in excess mortality   and a decline in life expectancy,  which was accompanied by the entrenchment of a newly established business oligarchy in the former.
Many social democratic parties, particularly after the Cold War, adopted neoliberal market policies including privatisation , deregulation and financialisation. They abandoned their pursuit of moderate socialism in favour of economic liberalism. By the s, with the rise of conservative neoliberal politicians such as Ronald Reagan in the United States, Margaret Thatcher in Britain, Brian Mulroney in Canada and Augusto Pinochet in Chile, the Western welfare state was attacked from within, but state support for the corporate sector was maintained.
Labour ruled that Militant was ineligible for affiliation with the party and it gradually expelled Militant supporters. The Kinnock leadership had refused to support the — miner's strike over pit closures, a decision that the party's left wing and the National Union of Mineworkers blamed for the strike's eventual defeat.
In , the 18th Congress of the Socialist International adopted a new Declaration of Principles, stating: "Democratic socialism is an international movement for freedom, social justice, and solidarity. Its goal is to achieve a peaceful world where these basic values can be enhanced and where each individual can live a meaningful life with the full development of his or her personality and talents, and with the guarantee of human and civil rights in a democratic framework of society.
In the s, the British Labour Party under Tony Blair enacted policies based on the free-market economy to deliver public services via the private finance initiative. Influential in these policies was the idea of a Third Way which called for a re-evaluation of welfare state policies. It believes that, by the strength of our common endeavour we achieve more than we achieve alone, so as to create, for each of us, the means to realise our true potential, and, for all of us, a community in which power, wealth, and opportunity are in the hands of the many, not the few.
Early socialist thought took influences from a diverse range of philosophies such as civic republicanism , Enlightenment rationalism , romanticism , forms of materialism , Christianity both Catholic and Protestant , natural law and natural rights theory , utilitarianism and liberal political economy. Positivism held that both the natural and social worlds could be understood through scientific knowledge and be analysed using scientific methods.
This core outlook influenced early social scientists and different types of socialists ranging from anarchists like Peter Kropotkin to technocrats like Saint Simon. The fundamental objective of socialism is to attain an advanced level of material production and therefore greater productivity, efficiency and rationality as compared to capitalism and all previous systems, under the view that an expansion of human productive capability is the basis for the extension of freedom and equality in society.
In particular, socialism holds that social mores , values, cultural traits and economic practices are social creations and not the result of an immutable natural law. Bertrand Russell , often considered to be the father of analytic philosophy, identified as a socialist. Russell opposed the class struggle aspects of Marxism, viewing socialism solely as an adjustment of economic relations to accommodate modern machine production to benefit all of humanity through the progressive reduction of necessary work time.
Socialists view creativity as an essential aspect of human nature and define freedom as a state of being where individuals are able to express their creativity unhindered by constraints of both material scarcity and coercive social institutions. Karl Marx believed that expansion of the productive forces and technology was the basis for the expansion of human freedom and that socialism, being a system that is consistent with modern developments in technology, would enable the flourishing of "free individualities" through the progressive reduction of necessary labour time.
The reduction of necessary labour time to a minimum would grant individuals the opportunity to pursue the development of their true individuality and creativity. Socialists argue that the accumulation of capital generates waste through externalities that require costly corrective regulatory measures.
They also point out that this process generates wasteful industries and practices that exist only to generate sufficient demand for products such as high-pressure advertisement to be sold at a profit, thereby creating rather than satisfying economic demand. Socialists argue that capitalism consists of irrational activity, such as the purchasing of commodities only to sell at a later time when their price appreciates, rather than for consumption, even if the commodity cannot be sold at a profit to individuals in need and therefore a crucial criticism often made by socialists is that "making money", or accumulation of capital, does not correspond to the satisfaction of demand the production of use-values.
Socialists view private property relations as limiting the potential of productive forces in the economy. According to socialists, private property becomes obsolete when it concentrates into centralised, socialised institutions based on private appropriation of revenue — but based on cooperative work and internal planning in allocation of inputs—until the role of the capitalist becomes redundant.
Excessive disparities in income distribution lead to social instability and require costly corrective measures in the form of redistributive taxation, which incurs heavy administrative costs while weakening the incentive to work, inviting dishonesty and increasing the likelihood of tax evasion while the corrective measures reduce the overall efficiency of the market economy. In essence, social welfare policies cripple capitalism and its incentive system and are thus unsustainable in the long-run.
Socialists and specifically Marxian socialists argue that the inherent conflict of interests between the working class and capital prevent optimal use of available human resources and leads to contradictory interest groups labour and business striving to influence the state to intervene in the economy in their favour at the expense of overall economic efficiency.
Early socialists utopian socialists and Ricardian socialists criticised capitalism for concentrating power and wealth within a small segment of society. Karl Marx and Friedrich Engels argued that socialism would emerge from historical necessity as capitalism rendered itself obsolete and unsustainable from increasing internal contradictions emerging from the development of the productive forces and technology.
It was these advances in the productive forces combined with the old social relations of production of capitalism that would generate contradictions, leading to working-class consciousness. Marx and Engels held the view that the consciousness of those who earn a wage or salary the working class in the broadest Marxist sense would be moulded by their conditions of wage slavery , leading to a tendency to seek their freedom or emancipation by overthrowing ownership of the means of production by capitalists and consequently, overthrowing the state that upheld this economic order.
For Marx and Engels, conditions determine consciousness and ending the role of the capitalist class leads eventually to a classless society in which the state would wither away. The Marxist conception of socialism is that of a specific historical phase that would displace capitalism and precede communism.
The major characteristics of socialism particularly as conceived by Marx and Engels after the Paris Commune of are that the proletariat would control the means of production through a workers' state erected by the workers in their interests. Economic activity would still be organised through the use of incentive systems and social classes would still exist, but to a lesser and diminishing extent than under capitalism. For orthodox Marxists, socialism is the lower stage of communism based on the principle of "from each according to his ability, to each according to his contribution " while upper stage communism is based on the principle of " from each according to his ability, to each according to his need ", the upper stage becoming possible only after the socialist stage further develops economic efficiency and the automation of production has led to a superabundance of goods and services.
This conflict between collective effort in large factories and private ownership would bring about a conscious desire in the working class to establish collective ownership commensurate with the collective efforts their daily experience.
Socialists have taken different perspectives on the state and the role it should play in revolutionary struggles, in constructing socialism and within an established socialist economy. In the 19th century, the philosophy of state socialism was first explicitly expounded by the German political philosopher Ferdinand Lassalle.
In contrast to Karl Marx's perspective of the state, Lassalle rejected the concept of the state as a class-based power structure whose main function was to preserve existing class structures. Lassalle also rejected the Marxist view that the state was destined to "wither away". Lassalle considered the state to be an entity independent of class allegiances and an instrument of justice that would therefore be essential for achieving socialism.
Preceding the Bolshevik-led revolution in Russia, many socialists including reformists , orthodox Marxist currents such as council communism , anarchists and libertarian socialists criticised the idea of using the state to conduct central planning and own the means of production as a way to establish socialism.
Following the victory of Leninism in Russia, the idea of "state socialism" spread rapidly throughout the socialist movement and eventually state socialism came to be identified with the Soviet economic model.
Joseph Schumpeter rejected the association of socialism and social ownership with state ownership over the means of production because the state as it exists in its current form is a product of capitalist society and cannot be transplanted to a different institutional framework. Schumpeter argued that there would be different institutions within socialism than those that exist within modern capitalism, just as feudalism had its own distinct and unique institutional forms.
The state, along with concepts like property and taxation , were concepts exclusive to commercial society capitalism and attempting to place them within the context of a future socialist society would amount to a distortion of these concepts by using them out of context. Utopian socialism is a term used to define the first currents of modern socialist thought as exemplified by the work of Henri de Saint-Simon , Charles Fourier and Robert Owen which inspired Karl Marx and other early socialists.
Religious sects whose members live communally such as the Hutterites are not usually called "utopian socialists", although their way of living is a prime example. They have been categorised as religious socialists by some. Similarly, modern intentional communities based on socialist ideas could also be categorised as "utopian socialist".
For Marxists, the development of capitalism in Western Europe provided a material basis for the possibility of bringing about socialism because according to The Communist Manifesto "[w]hat the bourgeoisie produces above all is its own grave diggers",  namely the working class, which must become conscious of the historical objectives set it by society. Revolutionary socialists believe that a social revolution is necessary to effect structural changes to the socioeconomic structure of society.
Among revolutionary socialists there are differences in strategy, theory and the definition of revolution. Orthodox Marxists and left communists take an impossibilist stance, believing that revolution should be spontaneous as a result of contradictions in society due to technological changes in the productive forces. Lenin theorised that under capitalism the workers cannot achieve class consciousness beyond organising into trade unions and making demands of the capitalists.
Therefore, Leninists advocate that it is historically necessary for a vanguard of class conscious revolutionaries to take a central role in coordinating the social revolution to overthrow the capitalist state and eventually the institution of the state altogether. Reformism is generally associated with social democracy and gradualist democratic socialism.
Reformism is the belief that socialists should stand in parliamentary elections within capitalist society and if elected use the machinery of government to pass political and social reforms for the purposes of ameliorating the instabilities and inequities of capitalism. Within socialism, reformism is used in two different ways.
One has no intention of bringing about socialism or fundamental economic change to society and is used to oppose such structural changes. The other is based on the assumption that while reforms are not socialist in themselves, they can help rally supporters to the cause of revolution by popularizing the cause of socialism to the working class. The debate on the ability for social democratic reformism to lead to a socialist transformation of society is over a century old.
Reformism is criticized for being paradoxical as it seeks to overcome the existing economic system of capitalism while trying to improve the conditions of capitalism, thereby making it appear more tolerable to society. According to Rosa Luxemburg , capitalism is not overthrown, "but is on the contrary strengthened by the development of social reforms". Socialist economics starts from the premise that "individuals do not live or work in isolation but live in cooperation with one another.
Furthermore, everything that people produce is in some sense a social product, and everyone who contributes to the production of a good is entitled to a share in it. Society as whole, therefore, should own or at least control property for the benefit of all its members". The original conception of socialism was an economic system whereby production was organised in a way to directly produce goods and services for their utility or use-value in classical and Marxian economics , with the direct allocation of resources in terms of physical units as opposed to financial calculation and the economic laws of capitalism see law of value , often entailing the end of capitalistic economic categories such as rent , interest , profit and money.
Market socialism refers to an array of different economic theories and systems that use the market mechanism to organise production and to allocate factor inputs among socially owned enterprises, with the economic surplus profits accruing to society in a social dividend as opposed to private capital owners. However, some economists such as Joseph Stiglitz , Mancur Olson and others not specifically advancing anti-socialists positions have shown that prevailing economic models upon which such democratic or market socialism models might be based have logical flaws or unworkable presuppositions.
Public ownership may refer to the creation of state-owned enterprises , nationalisation , municipalisation or autonomous collective institutions. Some socialists feel that in a socialist economy, at least the " commanding heights " of the economy must be publicly owned. Management and control over the activities of enterprises are based on self-management and self-governance, with equal power-relations in the workplace to maximise occupational autonomy.
A socialist form of organisation would eliminate controlling hierarchies so that only a hierarchy based on technical knowledge in the workplace remains. Every member would have decision-making power in the firm and would be able to participate in establishing its overall policy objectives. The role and use of money in a hypothetical socialist economy is a contested issue.
According to the Austrian school economist Ludwig von Mises , an economic system that does not use money , financial calculation and market pricing would be unable to effectively value capital goods and coordinate production and therefore these types of socialism are impossible because they lack the necessary information to perform economic calculation in the first place.
Bolshevik revolutionary Leon Trotsky argued that money could not be arbitrarily abolished following a socialist revolution. Money had to exhaust its "historic mission", meaning it would have to be used until its function became redundant, eventually being transformed into bookkeeping receipts for statisticians and only in the more distant future would money not be required for even that role.
A planned economy is a type of economy consisting of a mixture of public ownership of the means of production and the coordination of production and distribution through economic planning. A planned economy can be either decentralised or centralised. Enrico Barone provided a comprehensive theoretical framework for a planned socialist economy. In his model, assuming perfect computation techniques, simultaneous equations relating inputs and outputs to ratios of equivalence would provide appropriate valuations in order to balance supply and demand.
The most prominent example of a planned economy was the economic system of the Soviet Union and as such the centralised-planned economic model is usually associated with the communist states of the 20th century, where it was combined with a single-party political system.
In a centrally planned economy, decisions regarding the quantity of goods and services to be produced are planned in advance by a planning agency see also the analysis of Soviet-type economic planning. The economic systems of the Soviet Union and the Eastern Bloc are further classified as "command economies", which are defined as systems where economic coordination is undertaken by commands, directives and production targets.
Instead of conscious planning, the Soviet economy was based on a process whereby the plan was modified by localised agents and the original plans went largely unfulfilled. Planning agencies, ministries and enterprises all adapted and bargained with each other during the formulation of the plan as opposed to following a plan passed down from a higher authority, leading some economists to suggest that planning did not actually take place within the Soviet economy and that a better description would be an "administered" or "managed" economy.
Although central planning was largely supported by Marxist—Leninists , some factions within the Soviet Union before the rise of Stalinism held positions contrary to central planning. Leon Trotsky rejected central planning in favour of decentralised planning. He argued that central planners, regardless of their intellectual capacity, would be unable to coordinate effectively all economic activity within an economy because they operated without the input and tacit knowledge embodied by the participation of the millions of people in the economy.
As a result, central planners would be unable to respond to local economic conditions. A self-managed, decentralised economy is based on autonomous self-regulating economic units and a decentralised mechanism of resource allocation and decision-making. This model has found support in notable classical and neoclassical economists including Alfred Marshall , John Stuart Mill and Jaroslav Vanek.
There are numerous variations of self-management, including labour-managed firms and worker-managed firms. The goals of self-management are to eliminate exploitation and reduce alienation. Cole and influenced by the ideas of William Morris. One such system is the cooperative economy, a largely free market economy in which workers manage the firms and democratically determine remuneration levels and labour divisions.
Productive resources would be legally owned by the cooperative and rented to the workers, who would enjoy usufruct rights. The socialist-run government of Salvador Allende in Chile experimented with Project Cybersyn , a real-time information bridge between the government, state enterprises and consumers. Workers would be remunerated solely according to effort and sacrifice, so that those engaged in dangerous, uncomfortable and strenuous work would receive the highest incomes and could thereby work less.
Negotiated coordination is based upon social ownership by those affected by the use of the assets involved, with decisions made by those at the most localised level of production. Michel Bauwens identifies the emergence of the open software movement and peer-to-peer production as a new alternative mode of production to the capitalist economy and centrally planned economy that is based on collaborative self-management, common ownership of resources and the production of use-values through the free cooperation of producers who have access to distributed capital.
Anarcho-communism is a theory of anarchism which advocates the abolition of the state , private property and capitalism in favour of common ownership of the means of production. Sam Dolgoff estimated that about eight million people participated directly or at least indirectly in the Spanish Revolution. The economy of the former Socialist Federal Republic of Yugoslavia established a system based on market-based allocation, social ownership of the means of production and self-management within firms.
This system substituted Yugoslavia's Soviet-type central planning with a decentralised, self-managed system after reforms in The Marxian economist Richard D. Wolff argues that "re-organising production so that workers become collectively self-directed at their work-sites" not only moves society beyond both capitalism and state socialism of the last century, but would also mark another milestone in human history, similar to earlier transitions out of slavery and feudalism.
State socialism can be used to classify any variety of socialist philosophies that advocates the ownership of the means of production by the state apparatus , either as a transitional stage between capitalism and socialism, or as an end-goal in itself. Typically, it refers to a form of technocratic management, whereby technical specialists administer or manage economic enterprises on behalf of society and the public interest instead of workers' councils or workplace democracy.
A state-directed economy may refer to a type of mixed economy consisting of public ownership over large industries, as promoted by various Social democratic political parties during the 20th century. This ideology influenced the policies of the British Labour Party during Clement Attlee's administration. Nationalisation in the United Kingdom was achieved through compulsory purchase of the industry i. British Aerospace was a combination of major aircraft companies British Aircraft Corporation , Hawker Siddeley and others.
British Shipbuilders was a combination of the major shipbuilding companies including Cammell Laird , Govan Shipbuilders , Swan Hunter and Yarrow Shipbuilders , whereas the nationalisation of the coal mines in created a coal board charged with running the coal industry commercially so as to be able to meet the interest payable on the bonds which the former mine owners' shares had been converted into.
Market socialism consists of publicly owned or cooperatively owned enterprises operating in a market economy. It is a system that uses the market and monetary prices for the allocation and accounting of the means of production , thereby retaining the process of capital accumulation. The profit generated would be used to directly remunerate employees, collectively sustain the enterprise or finance public institutions.
Mutualism is an economic theory and anarchist school of thought that advocates a society where each person might possess a means of production , either individually or collectively, with trade representing equivalent amounts of labour in the free market.
The current economic system in China is formally referred to as a socialist market economy with Chinese characteristics. The Socialist Republic of Vietnam has adopted a similar model after the Doi Moi economic renovation, but slightly differs from the Chinese model in that the Vietnamese government retains firm control over the state sector and strategic industries, but allows for private-sector activity in commodity production.
While major socialist political movements include anarchism, communism, the labour movement, Marxism, social democracy and syndicalism, independent socialist theorists, utopian socialist authors and academic supporters of socialism may not be represented in these movements. Some political groups have called themselves socialist while holding views that some consider antithetical to socialism. The term socialist has also been used by some politicians on the political right as an epithet against certain individuals who do not consider themselves to be socialists and against policies that are not considered socialist by their proponents.
There are many variations of socialism and as such there is no single definition encapsulating all of socialism. However, there have been common elements identified by scholars. In his Dictionary of Socialism , Angelo S. Rappoport analysed forty definitions of socialism to conclude that common elements of socialism include general criticism of the social effects of private ownership and control of capital—as being the cause of poverty, low wages, unemployment, economic and social inequality and a lack of economic security; a general view that the solution to these problems is a form of collective control over the means of production , distribution and exchange the degree and means of control vary amongst socialist movements ; an agreement that the outcome of this collective control should be a society based upon social justice , including social equality, economic protection of people and should provide a more satisfying life for most people.
In The Concepts of Socialism , Bhikhu Parekh identifies four core principles of socialism and particularly socialist society, namely sociality, social responsibility, cooperation and planning. Anarchism advocates stateless societies often defined as self-governed voluntary institutions,     but that several authors have defined as more specific institutions based on non- hierarchical free associations. The authoritarian — libertarian struggles and disputes within the socialist movement go back to the First International and the expulsion in of the anarchists, who went on to lead the Anti-authoritarian International and then founded their own libertarian international, the Anarchist St.
Imier International. According to Lesigne, there are two types of socialism: "One is dictatorial, the other libertarian". Tucker noted that the fact that the authoritarian "State Socialism has overshadowed other forms of Socialism gives it no right to a monopoly of the Socialistic idea".
According to anarchists such as the authors of An Anarchist FAQ , anarchism is one of the many traditions of socialism. For anarchists and other anti-authoritarian socialists, socialism "can only mean a classless and anti-authoritarian i. In other words, it implies self-management in all aspects of life", including at the workplace. It cannot be reduced to socialism, and is best seen as a separate and distinctive doctrine".
Democratic socialism represents any socialist movement that seeks to establish an economy based on economic democracy by and for the working class. Democratic socialism is difficult to define and groups of scholars have radically different definitions for the term. Some definitions simply refer to all forms of socialism that follow an electoral, reformist or evolutionary path to socialism rather than a revolutionary one.
Pierson further claims that "social democratic and socialist parties within the constitutional arena in the West have almost always been involved in a politics of compromise with existing capitalist institutions to whatever far distant prize its eyes might from time to time have been lifted ".
For Pierson, "if advocates of the death of socialism accept that social democrats belong within the socialist camp, as I think they must, then the contrast between socialism in all its variants and liberal democracy must collapse. For actually existing liberal democracy is, in substantial part, a product of socialist social democratic forces".
Social democracy is a socialist tradition of political thought. The first variant advances democratic socialism through reformist and gradualist methods. It is often used in this manner to refer to Western and Northern Europe during the later half of the 20th century.
Social democrats advocate for a peaceful, evolutionary transition of the economy to socialism through progressive social reform. Modern democratic socialism is a broad political movement that seeks to promote the ideals of socialism within the context of a democratic system. Some democratic socialists support social democracy as a temporary measure to reform the current system while others reject reformism in favour of more revolutionary methods.
Modern social democracy emphasises a program of gradual legislative modification of capitalism in order to make it more equitable and humane while the theoretical end goal of building a socialist society is relegated to the indefinite future. According to Sheri Berman , Marxism is loosely held to be valuable for its emphasis on changing the world for a more just, better future. The two movements are widely similar both in terminology and in ideology, although there are a few key differences.
The major difference between social democracy and democratic socialism is the object of their politics in that contemporary social democrats support a welfare state and unemployment insurance as well as other practical, progressive reforms of capitalism and are more concerned to administrate and humanise it. On the other hand, democratic socialists seek to replace capitalism with a socialist economic system, arguing that any attempt to humanise capitalism through regulations and welfare policies would distort the market and create economic contradictions.
Ethical socialism appeals to socialism on ethical and moral grounds as opposed to economic, egoistic and consumeristic grounds. It emphasizes the need for a morally conscious economy based upon the principles of altruism, cooperation and social justice while opposing possessive individualism.
Liberal socialism incorporates liberal principles to socialism. Blanquism is a conception of revolution named for Louis Auguste Blanqui. It holds that socialist revolution should be carried out by a relatively small group of highly organised and secretive conspirators. Hal Draper defined socialism from above as the philosophy which employs an elite administration to run the socialist state. The other side of socialism is a more democratic socialism from below.
Draper makes the argument that this division echoes the division between "reformist or revolutionary, peaceful or violent, democratic or authoritarian, etc. According to Arthur Lipow, Marx and Engels were "the founders of modern revolutionary democratic socialism", described as a form of "socialism from below" that is "based on a mass working-class movement, fighting from below for the extension of democracy and human freedom". This type of socialism is contrasted to that of the "authoritarian, antidemocratic creed" and "the various totalitarian collectivist ideologies which claim the title of socialism" as well as "the many varieties of 'socialism from above' which have led in the twentieth century to movements and state forms in which a despotic ' new class ' rules over a statified economy in the name of socialism", a division that "runs through the history of the socialist movement".
Lipow identifies Bellamyism and Stalinism as two prominent authoritarian socialist currents within the history of the socialist movement. Libertarian socialism, sometimes called left-libertarianism ,   social anarchism   and socialist libertarianism ,  is an anti-authoritarian , anti-statist and libertarian  tradition within socialism that rejects centralised state ownership and control  including criticism of wage labour relationships wage slavery  as well as the state itself.
Anarcho-syndicalist Gaston Leval explained: "We therefore foresee a Society in which all activities will be coordinated, a structure that has, at the same time, sufficient flexibility to permit the greatest possible autonomy for social life, or for the life of each enterprise, and enough cohesiveness to prevent all disorder.
As part of the larger socialist movement, it seeks to distinguish itself from Bolshevism, Leninism and Marxism—Leninism as well as social democracy. Christian socialism is a broad concept involving an intertwining of Christian religion with socialism. Islamic socialism is a more spiritual form of socialism. Muslim socialists believe that the teachings of the Qur'an and Muhammad are not only compatible with, but actively promoting the principles of equality and public ownership , drawing inspiration from the early Medina welfare state he established.
Muslim socialists are more conservative than their Western contemporaries and find their roots in anti-imperialism , anti-colonialism and sometimes, if in an Arab speaking country, Arab nationalism. Islamic socialists believe in deriving legitimacy from political mandate as opposed to religious texts. Socialist feminism is a branch of feminism that argues that liberation can only be achieved by working to end both economic and cultural sources of women's oppression.
Many socialists were early advocates for LGBT rights. For early socialist Charles Fourier , true freedom could only occur without suppressing passions, as the suppression of passions is not only destructive to the individual, but to society as a whole.
He argued that all sexual expressions should be enjoyed as long as people are not abused and that "affirming one's difference" can actually enhance social integration. After the Russian Revolution under the leadership of Lenin and Trotsky, the Soviet Union abolished previous laws against homosexuality.
He is known for his roles in helping to found gay organisations, including the Mattachine Society , the first sustained gay rights group in the United States which in its early days reflected a strong Marxist influence. The Encyclopedia of Homosexuality reports that "[a]s Marxists the founders of the group believed that the injustice and oppression which they suffered stemmed from relationships deeply embedded in the structure of American society".
Many sprang from left radicalism more than established homophile groups,  although the Gay Liberation Front took an anti-capitalist stance and attacked the nuclear family and traditional gender roles. Eco-socialism is a political strain merging aspects of socialism, Marxism or libertarian socialism with green politics, ecology and alter-globalisation. Eco-socialists generally claim that the expansion of the capitalist system is the cause of social exclusion, poverty, war and environmental degradation through globalisation and imperialism under the supervision of repressive states and transnational structures.
In the late 19th century, anarcho-naturism fused anarchism and naturist philosophies within individualist anarchist circles in France, Spain, Cuba  and Portugal. An "environmentalism of the poor" combining ecological awareness and social justice has also become prominent. Radical red-green alliances have been formed in many countries by eco-socialists, radical greens and other radical left groups. In Denmark , the Red-Green Alliance was formed as a coalition of numerous radical parties.
Syndicalism operates through industrial trade unions. It rejects state socialism and the use of establishment politics. Syndicalists reject state power in favour of strategies such as the general strike. Syndicalists advocate a socialist economy based on federated unions or syndicates of workers who own and manage the means of production. Some Marxist currents advocate syndicalism, such as De Leonism. Anarcho-syndicalism views syndicalism as a method for workers in capitalist society to gain control of an economy.
Socialism is criticised in terms of its models of economic organization as well as its political and social implications. Other critiques are directed at the socialist movement , parties or existing states. Some criticisms occupy theoretical grounds such as in the economic calculation problem and the socialist calculation debate while others support their criticism by examining historical attempts to establish socialist societies.
Because of socialism's many varieties, most critiques focused on a specific approach. Proponents of one approach typically criticise others. From Wikipedia, the free encyclopedia. Political ideology and socio-economic system advocating social ownership of production.
For other uses, see Socialism disambiguation. History Outline. Related topics. Related lists Category By country. Far-left Centre-left. Centre-left Radical centre Centre-right. Centre-right Far-right. Party leader Secretary-General Party chair.
Leader of the Opposition Shadow cabinet. Party spokesperson Lead candidate. Whip Party discipline Party line. Caucus Parliamentary group. Frontbencher Backbencher. Party-line vote Conscience vote. Dominant-party Two-party Multi-party.
Hung parliament Confidence and supply Rotation government Minority government Majority government Rainbow coalition Grand coalition Full coalition. Main article: History of socialism. See also: History of anarchism and History of communism. Main article: Revolutions of Main article: Paris Commune. Main article: International Workingmen's Association.
Main article: Second International. See also: Internationalist—defencist schism , Proletarian internationalism , Reformist—revolutionary dispute , Revolutionary defeatism , Social chauvinism , and Social patriotism. Main articles: February Revolution and October Revolution. Main article: Communist International. Main article: 4th World Congress of the Communist International.
Main article: Spanish Civil War. Main articles: Cold War and Post-war consensus. See also: Nordic model. Main article: New Left. Main article: Protests of Main article: Types of socialism. Main articles: Anti-capitalism and Criticism of capitalism. Main article: Marxism. At a certain stage of development, the material productive forces of society come into conflict with the existing relations of production or—this merely expresses the same thing in legal terms—with the property relations within the framework of which they have operated hitherto.
Then begins an era of social revolution. The changes in the economic foundation lead sooner or later to the transformation of the whole immense superstructure. See also: Anti-statism , Marx's theory of the state , and State socialism. Main articles: Scientific socialism and Utopian socialism. Main articles: Reformism and Revolutionary socialism.
Main article: Socialist economics. See also: Production for use. The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil. In such an economy, the means of production are owned by society itself and are utilised in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child.
The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow men in place of the glorification of power and success in our present society. Main article: Planned economy. Main articles: Decentralised planning , Economic democracy , and Workers' self-management. Socialism, you see, is a bird with two wings. The definition is 'social ownership and democratic control of the instruments and means of production.
Main article: State socialism. See also: Dirigisme , Nationalization , Public ownership , State capitalism , and Steady-state economy. Main article: Market socialism. See also: Labour movement , The labor problem , and Trade union. Main article: Anarchism. Main articles: Democratic socialism and Social democracy. You can't talk about ending the slums without first saying profit must be taken out of slums.
You're really tampering and getting on dangerous ground because you are messing with folk then. You are messing with captains of industry. Now this means that we are treading in difficult water, because it really means that we are saying that something is wrong with capitalism. There must be a better distribution of wealth, and maybe America must move toward a democratic socialism. Main articles: Ethical socialism and Liberal socialism.
Main article: Libertarian socialism. Main article: Religious socialism. See also: Anarcha-feminism , Anarcho-naturism , Environmentalism , Green anarchism , Green politics , Progressivism , and Queer anarchism. Main article: Syndicalism. See also: Anarcho-syndicalism. Main article: Criticism of socialism. Democratic Socialism: A Global Survey. ISBN Socialism may be defined as movements for social ownership and control of the economy. It is this idea that is the common element found in the many forms of socialism.
Scott Oxford University Press. Those who favor socialism generally speak of social ownership, social control, or socialization of the means of production as the distinctive positive feature of a socialist economic system. Comparative Economics in a Transforming World Economy. MIT Press. Socialism is an economic system characterised by state or collective ownership of the means of production, land, and capital.
International Encyclopedia of Political Science. SAGE Publications. Socialist systems are those regimes based on the economic and political theory of socialism, which advocates public ownership and cooperative management of the means of production and allocation of resources. Harcourt College Pub. The Economics and Politics of Socialism.
This alteration in the relationship between economy and politics is evident in the very definition of a socialist economic system. The basic characteristic of such a system is generally reckoned to be the predominance of the social ownership of the means of production.
A society may be defined as socialist if the major part of the means of production of goods and services is in some sense socially owned and operated, by state, socialised or cooperative enterprises. The practical issues of socialism comprise the relationships between management and workforce within the enterprise, the interrelationships between production units plan versus markets , and, if the state owns and operates any part of the economy, who controls it and how. Readers Guide to the Social Sciences.
Just as private ownership defines capitalism, social ownership defines socialism. The essential characteristic of socialism in theory is that it destroys social hierarchies, and therefore leads to a politically and economically egalitarian society.
Two closely related consequences follow. First, every individual is entitled to an equal ownership share that earns an aliquot part of the total social dividend…Second, in order to eliminate social hierarchy in the workplace, enterprises are run by those employed, and not by the representatives of private or state capital.
Thus, the well-known historical tendency of the divorce between ownership and management is brought to an end. The society—i. The Free Dictionary. Retrieved 27 January Encyclopedia of Political Economy, Volume 2. In order of increasing decentralisation at least three forms of socialised ownership can be distinguished: state-owned firms, employee-owned or socially owned firms, and citizen ownership of equity.
This term is harder to define, since socialists disagree among themselves about what socialism 'really is. It also requires a belief in a certain institutional means to achieve those ends; whatever that may mean in positive terms, it certainly presupposes, at a minimum, the belief that these ends and values cannot be achieved in an economic system in which there is widespread private ownership of the means of production…Those who favor socialism generally speak of social ownership, social control, or socialization of the means of production as the distinctive positive feature of a socialist economic system.
The Oxford Companion to Christian Thought. Socialists have always recognized that there are many possible forms of social ownership of which co-operative ownership is one Nevertheless, socialism has throughout its history been inseparable from some form of common ownership. By its very nature it involves the abolition of private ownership of capital; bringing the means of production, distribution, and exchange into public ownership and control is central to its philosophy.
It is difficult to see how it can survive, in theory or practice, without this central idea. Historical Dictionary of Socialism 2nd ed. Historical Dictionaries of Religions, Philosophies, and Movements. Lanham, Maryland: Scarecrow Press. There are many forms of socialism, all of which eliminate private ownership of capital and replace it with collective ownership. These many forms, all focused on advancing distributive justice for long-term social welfare, can be divided into two broad types of socialism: nonmarket and market.
Stanford University Press. While some socialists recognised the need for money and prices at least during the transition from capitalism to socialism, socialists more commonly believed that the socialist economy would soon administratively mobilise the economy in physical units without the use of prices or money. Open Court. Especially before the s, many socialists and anti-socialists implicitly accepted some form of the following for the incompatibility of state-owned industry and factor markets.
A market transaction is an exchange of property titles between two independent transactors. Thus internal market exchanges cease when all of industry is brought into the ownership of a single entity, whether the state or some other organization, [ Ethics, vol. April "Marxian socialism is often identified with the call to organize economic activity on a nonmarket basis.
There is no necessary connection between the accumulation of capital or sums of money and human welfare. Under conditions of backwardness, the spur of money and the accumulation of wealth has led to a massive growth in industry and technology [ It seems an odd argument to say that a capitalist will only be efficient in producing use-value of a good quality when trying to make more money than the next capitalist.
It would seem easier to rely on the planning of use-values in a rational way, which because there is no duplication, would be produced more cheaply and be of a higher quality. There would then be something like 'scientific management', 'the science of socially organized production', but it would not be economics. University of Massachusetts. Retrieved 19 February At that time, there was also wide agreement about the basic institutions of the future socialist system: public ownership instead of private ownership of the means of production, economic planning instead of market forces, production for use instead of for profit.
Review of Radical Political Economics. Indeed, in earlier days many socialists saw the promotion of improving material living standards as the primary basis for socialism's claim to superiority over capitalism, for socialism was to overcome the irrationality and inefficiency seen as endemic to a capitalist system of economic organization. Edward Elgar Publishing.
Socialism is a system based upon de facto public or social ownership of the means of production, the abolition of a hierarchical division of labor in the enterprise, a consciously organized social division of labor.