What is socialism vs communism?

Índice Show

What is communism?
How are they different from democracy?
Who invented socialism and communism?
What is socialism?
What is Communism?
The main difference between democratic socialism and Communism

Socialism has three main meanings:

1. a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

2. procedure or practice in accordance with this theory.

3. (in Marxist theory) the stage following capitalism in the transition of a society to communism, characterized by the imperfect implementation of collectivist principles.

Socialism is a social theory … makes sense. It theorizes that a collective cooperation of citizens will make all governmental institutions public. For example, no one will receive a healthcare bill when going to the doctor because they, and everyone else, have paid a hefty amount in government taxes. That’s where the collective cooperation comes in.

What is communism?

Communism, on the other hand, is a branch of socialism. It’s similar in that it’s still founded on the idea of collective cooperation, but differs in that communists believe that cooperation should be run by a totalitarian government made up of one and only one government.

Russia gave communism a bad name when it reigned as the USSR. It was here that thousands who were seen as threats to the state—artists, authors, intellectuals, even those who practiced religion—were sent to be slaughtered or exiled … uh, yikes. I guess you could call it socialism gone bad.

Although the USSR fell way back when, Russia is still very communist culturally, though economically they’re a capitalistic system. Countries like the People’s Republic of China are certainly more communist than Russia, where all things are nationalized up to the point that citizens can’t even make full use of the internet due to the government’s fear of free thought.

So, although communism is a form of socialism … it’s definitely the rotten egg of the two.

How are they different from democracy?

Democracy is “a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.” The Greek demokratia is derived from demos, “common people,” and kratos, “strength.”

Basically, in a democracy, the head of state is usually a president, and the supreme power rests in the body of citizens entitled to vote (which is then exercised by representatives chosen directly or indirectly by them). Capitalism is part of democracies (not communist or socialist countries). The community as a whole does not own all of the property and wealth in a democracy.

Who invented socialism and communism?

Our modern ideas of socialism and communism tend to come from what Karl Marx outlined in The Communist Manifesto and what was later implemented in Russia by Vladimir Lenin and his followers (the Bolsheviks). Marx’s manifesto called for a complete overhaul of capitalist systems of the time. It advocated for the working class (the proletariat) to uprise against the aristocracy and other elites (the bourgeoisie), followed by the implementation of a new society where everyone was equal. That sounds great on paper, but the way it played out in Russia was a bloody revolution (including the arrest and execution of Czar Nicholas II and his family). In the 1920s, Joseph Stalin took over, and he established a completely totalitarian regime. Stalin’s government was marked by widespread famine, poverty, and death.

Modern-day Russia is neither socialist, nor communist. That ended in 1991. However, today, North Korea self-identifies as socialist, and it operates in a very similar way to Stalin’s USSR. China went through a Communist revolution not long after Russia did, and today they self-identify as “socialist with Chinese characteristics.”

It’s not all doom and gloom, though. Many Nordic countries operate as social democracies. This means they blend a lot of “socialist” policies (like providing state healthcare, social security, and worker’s compensation) with certain “capitalist” features (like private property and the democratic process).

To read more about other government words, take a look at our slideshow!

Both socialism and communism place great value on creating a more equal society and removal of class privilege. The main difference is that socialism is compatible with democracy and liberty, whereas Communism involves creating an ‘equal society’ through an authoritarian state, which denies basic liberties.

Democratic socialism in the west involves participating in democracy to seek an incremental reduction in inequality. It implies a mixture of public sector intervention and private enterprise.

Communism is a political and economic ideology – closely associated with the state Communism of the Soviet Union and China. It aimed at state control of the economy to attain greater equality – often at the expense of individual liberty.

George Orwell, who was a committed socialist, fought in the Spanish Civil War for a socialist-anarchist party on the side of the Republican movement. However, he was deeply critical of the Soviet-backed Communists who behaved more like the extreme right, with their authoritarian actions.

“the Communists stood not upon the extreme Left, but upon the extreme right. In reality this should come as no surprise, because the tactics of the Communist parties elsewhere.”

George Orwell, Homage to Catalonia

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

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.

The main difference between democratic socialism and Communism

Democratic socialism	Communism
Parliamentary democracy. Socialist parties in western Europe seek to gain power through democracy and winning elections.	Revolution. Communist parties disdain capitalist democracy and believe power should be exercised by “The people” and not democracy
Individual liberty important. Protection for human rights and free speech.	Authoritarian state ignores liberty and cracks down on criticism and dissent.
Mix of public and private sector. Democratic socialism may nationalise key industries, such as gas, transport and electricity but leaves most private industry unaffected.	State control of all industry. Only very limited role for free enterprise. Setting up new enterprise requires government approval.
Prices determined by the free market, with some exceptions, e.g. rent controls.	Prices and output set by the government. Can lead to shortages and surpluses.
Redistribution of income through tax and benefits, e.g. progressive marginal income tax rates and benefits for unemployment.	Equality of income – wages set by the government.
Equality of opportunity main goal. Support free public education to enable all people to gain qualifications.	Equality of outcome. Even those who work hard or are more intelligent should get the same wage.
Decentralised initiatives, e.g. local worker councils or local democracy on decisions like new roads.	Centralised economy, with decisions coming from the top.
Support for trade unions and right to strike. Also labour market policies, such as a maximum working week and minimum wages.	Trade unions not allowed as state claim ‘not needed’ No right to strike as government always give ‘good’ conditions.
Broadly Keynesian economic policies to deal with recession, demand management.	Direct intervention in economy and claim ‘no unemployment’
Progressive tax system	No need – wages the same
Subsidised house building. A mixture of private and public ownership	Mostly public housing with limited scope for private property.
Makes use of the existing financial system, but tries to reform	State control of banks and finance.