- There are several different types of socialism. But, in the west, the best guide to socialism is through the prism of democratic socialist parties. For example, the UK Labour Party won the 1945 General election and implemented several socialist policies, which included
Higher-income tax on high-earners
Creation of National health care system – free at the point of use
Nationalisation of key industries, such as coal, electricity and gas. Creation of welfare state with minimum income guarantee for the unemployed.
Labour market reforms, such as greater protection for trade unions. Expansion of free education
Socialism emphasises equality of opportunity, using the state to redistribute income from the highest earners to others. But, it does not insist on equality, only aiming for equality of opportunity.
Democratic socialism combines both public sector intervention with private sector enterprise.
Traditionally socialist parties may want to nationalise key public sector industries (which are natural monopolies), but private firms are free to operate in the free market. Rather than control individual firms, the state implements rules to avoid the exploitation of workers and consumers.
Socialism allows private property and private ownership, but it may place a certain tax on wealth and inheritance to redistribute opportunity and wealth.
What is Communism?
Communist economic and political theory was developed by Karl Marx. He developed the concept of a ‘Dictatorship of the Proletariat’ arguing that the working class should rule in the interests of the people, and ignore democratic norms.
Marx also advocated for a revolution to overthrow capitalism and create a new economy where industry was owned and managed by the government rather than private individuals.
In practice, the Soviet Union did achieve a new kind of economy through the 1917 revolution. Lenin and then Stalin also cracked down on individual liberty and removed all forms of democracy. An overriding aspect of the Communist society was the lack of individual liberty and freedom.
In the Communist Soviet Union, the state became all-powerful in managing the economy, setting targets, deciding what to produce and how to produce. It left very little if any role for the price mechanism and free markets.
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What is socialism?
- There are several different types of socialism. But, in the west, the best guide to socialism is through the prism of democratic socialist parties. For example, the UK Labour Party won the 1945 General election and implemented several socialist policies, which included
What is Communism?