The nature of socialism
Socialism is an economic and political philosophy encompassing diverse economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes the economic, political, and social theories and movements associated with the implementation of such systems. Social ownership can take various forms, including public, community, collective, cooperative, or employee. As one of the main ideologies on the political spectrum, socialism is the standard left-wing ideology in most countries. Types of socialism vary based on the role of markets and planning in resource allocation, and the structure of management in organizations.
Socialist systems are divided into non-market and market forms. A non-market socialist system seeks to eliminate the perceived inefficiencies, irrationalities, unpredictability, and crises that socialists traditionally associate with capital accumulation and the profit system. Market socialism retains the use of monetary prices, factor markets and sometimes the profit motive. As a political force, socialist parties and ideas exercise varying degrees of power and influence, heading national governments in several countries. Socialist politics have been internationalist and nationalist; organised through political parties and opposed to party politics; at times overlapping with trade unions and other times independent and critical of them, and present in industrialised and developing nations. Social democracy originated within the socialist movement, supporting economic and social interventions to promote social justice. While retaining socialism as a long-term goal, in the post-war period social democracy embraced a mixed economy based on Keynesianism within a predominantly developed capitalist market economy and liberal democratic polity that expands state intervention to include income redistribution, regulation, and a welfare state.
The socialist political movement includes political philosophies that originated in the revolutionary movements of the mid-to-late 18th century and out of concern for the social problems that socialists associated with capitalism. By the late 19th century, after the work of Karl Marx and his collaborator Friedrich Engels, socialism had come to signify anti-capitalism and advocacy for a post-capitalist system based on some form of social ownership of the means of production. By the early 1920s, communism and social democracy had become the two dominant political tendencies within the international socialist movement, with socialism itself becoming the most influential secular movement of the 20th century. Many socialists also adopted the causes of other social movements, such as feminism, environmentalism, and progressivism.
Although the emergence of the Soviet Union as the world's first nominally socialist state led to the widespread association of socialism with the Soviet economic model, it has since shifted in favour of democratic socialism. Academics sometimes recognised the mixed economies of several Western European and Nordic countries as "democratic socialist", although the system of these countries, with only limited social ownership (generally in the form of state ownership), is more usually described as social democracy. Following the revolutions of 1989, many of these countries moved away from socialism as a neoliberal consensus replaced the social democratic consensus in the advanced capitalist world. In parallel, many former socialist politicians and political parties embraced "Third Way" politics, remaining committed to equality and welfare while abandoning public ownership and class-based politics. Socialism experienced a resurgence in popularity in the 2010s due to the 2008 global financial crisis.
According to analytical Marxist sociologist Erik Olin Wright, "The Right condemned socialism as violating individual rights to private property and unleashing monstrous forms of state oppression", while "the Left saw it as opening up new vistas of social equality, genuine freedom and the development of human potentials."
Because of socialism's many varieties, most critiques have focused on a specific approach. Proponents of one approach typically criticise others. Socialism has been 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 forms of criticism occupy theoretical grounds, such as in the economic calculation problem presented by proponents of the Austrian School as part of the socialist calculation debate, while others support their criticism by examining historical attempts to establish socialist societies. The economic calculation problem concerns the feasibility and methods of resource allocation for a planned socialist system.
Central planning is also criticized by elements of the radical left. Libertarian socialist economist Robin Hahnel notes that even if central planning overcame its inherent inhibitions of incentives and innovation, it would nevertheless be unable to maximize economic democracy and self-management, which he believes are concepts that are more intellectually coherent, consistent and just than mainstream notions of economic freedom.
Economic liberals and right-libertarians argue that private ownership of the means of production and market exchange are natural entities or moral rights which are central to freedom and liberty and argue that the economic dynamics of capitalism are immutable and absolute. As such, they also argue that public ownership of the means of production and economic planning are infringements upon liberty.
Critics of socialism have argued that in any society where everyone holds equal wealth, there can be no material incentive to work because one does not receive rewards for a work well done. They further argue that incentives increase productivity for all people and that the loss of those effects would lead to stagnation. Some critics of socialism argue that income sharing reduces individual incentives to work and therefore incomes should be individualized as much as possible.
Peter Self criticized the aims of socialism, arguing that equality erodes away at individual diversities and that the establishment of an equal society would have to entail strong coercion.
Milton Friedman argued that the absence of private economic activity would enable political leaders to grant themselves coercive powers, powers that, under a capitalist system, would instead be granted by a capitalist class, which Friedman found preferable.
Many commentators on the political right point to the mass killings under communist regimes, claiming them as an indictment of socialism.
Opponents of this view, including supporters of socialism, state that these killings were aberrations caused by specific authoritarian regimes rather than socialism itself. They draw comparisons to killings, famines and excess deaths under capitalism, colonialism and anti-communist authoritarian governments.
Socialist systems are divided into non-market and market forms. A non-market socialist system seeks to eliminate the perceived inefficiencies, irrationalities, unpredictability, and crises that socialists traditionally associate with capital accumulation and the profit system. Market socialism retains the use of monetary prices, factor markets and sometimes the profit motive. As a political force, socialist parties and ideas exercise varying degrees of power and influence, heading national governments in several countries. Socialist politics have been internationalist and nationalist; organised through political parties and opposed to party politics; at times overlapping with trade unions and other times independent and critical of them, and present in industrialised and developing nations. Social democracy originated within the socialist movement, supporting economic and social interventions to promote social justice. While retaining socialism as a long-term goal, in the post-war period social democracy embraced a mixed economy based on Keynesianism within a predominantly developed capitalist market economy and liberal democratic polity that expands state intervention to include income redistribution, regulation, and a welfare state.
The socialist political movement includes political philosophies that originated in the revolutionary movements of the mid-to-late 18th century and out of concern for the social problems that socialists associated with capitalism. By the late 19th century, after the work of Karl Marx and his collaborator Friedrich Engels, socialism had come to signify anti-capitalism and advocacy for a post-capitalist system based on some form of social ownership of the means of production. By the early 1920s, communism and social democracy had become the two dominant political tendencies within the international socialist movement, with socialism itself becoming the most influential secular movement of the 20th century. Many socialists also adopted the causes of other social movements, such as feminism, environmentalism, and progressivism.
Although the emergence of the Soviet Union as the world's first nominally socialist state led to the widespread association of socialism with the Soviet economic model, it has since shifted in favour of democratic socialism. Academics sometimes recognised the mixed economies of several Western European and Nordic countries as "democratic socialist", although the system of these countries, with only limited social ownership (generally in the form of state ownership), is more usually described as social democracy. Following the revolutions of 1989, many of these countries moved away from socialism as a neoliberal consensus replaced the social democratic consensus in the advanced capitalist world. In parallel, many former socialist politicians and political parties embraced "Third Way" politics, remaining committed to equality and welfare while abandoning public ownership and class-based politics. Socialism experienced a resurgence in popularity in the 2010s due to the 2008 global financial crisis.
According to analytical Marxist sociologist Erik Olin Wright, "The Right condemned socialism as violating individual rights to private property and unleashing monstrous forms of state oppression", while "the Left saw it as opening up new vistas of social equality, genuine freedom and the development of human potentials."
Because of socialism's many varieties, most critiques have focused on a specific approach. Proponents of one approach typically criticise others. Socialism has been 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 forms of criticism occupy theoretical grounds, such as in the economic calculation problem presented by proponents of the Austrian School as part of the socialist calculation debate, while others support their criticism by examining historical attempts to establish socialist societies. The economic calculation problem concerns the feasibility and methods of resource allocation for a planned socialist system.
Central planning is also criticized by elements of the radical left. Libertarian socialist economist Robin Hahnel notes that even if central planning overcame its inherent inhibitions of incentives and innovation, it would nevertheless be unable to maximize economic democracy and self-management, which he believes are concepts that are more intellectually coherent, consistent and just than mainstream notions of economic freedom.
Economic liberals and right-libertarians argue that private ownership of the means of production and market exchange are natural entities or moral rights which are central to freedom and liberty and argue that the economic dynamics of capitalism are immutable and absolute. As such, they also argue that public ownership of the means of production and economic planning are infringements upon liberty.
Critics of socialism have argued that in any society where everyone holds equal wealth, there can be no material incentive to work because one does not receive rewards for a work well done. They further argue that incentives increase productivity for all people and that the loss of those effects would lead to stagnation. Some critics of socialism argue that income sharing reduces individual incentives to work and therefore incomes should be individualized as much as possible.
Peter Self criticized the aims of socialism, arguing that equality erodes away at individual diversities and that the establishment of an equal society would have to entail strong coercion.
Milton Friedman argued that the absence of private economic activity would enable political leaders to grant themselves coercive powers, powers that, under a capitalist system, would instead be granted by a capitalist class, which Friedman found preferable.
Many commentators on the political right point to the mass killings under communist regimes, claiming them as an indictment of socialism.
Opponents of this view, including supporters of socialism, state that these killings were aberrations caused by specific authoritarian regimes rather than socialism itself. They draw comparisons to killings, famines and excess deaths under capitalism, colonialism and anti-communist authoritarian governments.
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