Socialism vs. Social Democracy: Usage Guide

In the many years since socialism entered English around 1830, it has acquired several different meanings. It refers to a system of social organization in which private property and the distribution of income are subject to social control, but the conception of that control has varied, and the term has been interpreted in widely diverging ways, ranging from statist to libertarian, from Marxist to liberal. In the modern era, "pure" socialism has been seen only rarely and usually briefly in a few Communist regimes. Far more common are systems of social democracy, now often referred to as democratic socialism, in which extensive state regulation, with limited state ownership, has been employed by democratically elected governments (as in Sweden and Denmark) in the belief that it produces a fair distribution of income without impairing economic growth.

Communism, Socialism, Capitalism, and Democracy

Communism, socialism, capitalism, and democracy are all among our top all-time lookups, and user comments suggest that this is because they are complex, abstract terms often used in opaque ways. They're frequently compared and contrasted, with communism sometimes equated with socialism, and democracy and capitalism frequently linked.

Part of the confusion stems from the fact that the word communism has been applied to varying political systems over time. When it was first used in English prose in the mid-19th century, communism referred to an economic and political theory that advocated the elimination of private property and the common sharing of all resources among a group of people; in this use, it was often used interchangeably with the word socialism by 19th-century writers.

The differences between communism and socialism are still debated, but generally English speakers use communism to talk about the political and economic ideologies that find their origin in Karl Marx’s theory of revolutionary socialism, which advocates a proletariat overthrow of capitalist structures within a society; societal and communal ownership and governance of the means of production; and the eventual establishment of a classless society. The most well-known expression of Marx’s theories is the 20th-century Bolshevism of the U.S.S.R., in which the state, through a single authoritarian party, controlled a society’s economic and social activities with the goal of realizing Marx’s theories. Socialism, meanwhile, is most often used in modern English to refer to a system of social organization in which private property and the distribution of income are subject to social control. (The term is also often used in the phrase democratic socialism, which is discussed here.)

Communism and socialism are both frequently contrasted with capitalism and democracy, though these can be false equivalencies depending on the usage. Capitalism refers to an economic system in which a society’s means of production are held by private individuals or organizations, not the government, and where products, prices, and the distribution of goods are determined mainly by competition in a free market. As an economic system, it can be contrasted with the economic system of communism, though as we have noted, the word communism is used of both political and economic systems. Democracy refers not to an economic system but to a system of government in which supreme power is vested in the people and exercised through a system of direct or indirect representation which is decided through periodic free elections. (For discussion about whether the United States is accurately described as a democracy or as a republic, see the article here.)

Readers should consult the individual entries for a full treatment of the various ways in which each of these four words is used.

Examples of socialism in a Sentence

She is quite right, for example, to stress that Thatcher's crusade against socialism was not merely about economic efficiency and prosperity but that above all, "it was that socialism itself—in all its incarnations, wherever and however it was applied—was morally corrupting." — Stephen Pollard, New York Times Book Review, 18 Jan. 2009 Lenin's great genius, of course, was for ideology, which was redefined all too often to support the tactical requirements of the moment. But owing to his fanatical conviction of his own righteousness, especially where socialism was concerned, and also to the Promethean force of his will, his pronouncements were enshrined by his followers as universal truths. — Michael Scammell, New Republic, 20 Dec. 1999

Recent Examples on the Web One thing that makes Colombia and Venezuela different from much of Latin America is that socialism as a brand has a very specific, very high salience meaning in those countries. — James Freeman, WSJ, "The Emerging Conservative Coalition," 3 Mar. 2021 According to Konczal, America beat a tragic retreat from socialism during the late 20th and early 21st centuries. — Stephen Eide, National Review, "America’s Supposedly Socialist History," 15 Jan. 2021 Pretending to lead a broad movement of international socialism, Pyotr manipulates those around him into committing violent acts and insurrection against the local government. — Ani Kokobobo, The Conversation, "Dostoevsky warned of the strain of nihilism that infects Donald Trump and his movement," 13 Jan. 2021 History also confirms that socialism kills liberty. — Tim Pawlenty, Star Tribune, "Tim Pawlenty: Where does the GOP go from here?," 10 Jan. 2021 For all the shouting about trying to save our country from socialism, however, the insurrection had little to do with ideology. — Gilbert Garcia, ExpressNews.com, "Garcia: Capitol riot culminated 12 years of Tea Party resentment," 7 Jan. 2021 Suddenly, the message was that socialism remains a dirty word for Latinos. — Los Angeles Times, "Here are the top Latino media moments of 2020 — and hints of what to expect in 2021," 31 Dec. 2020 DeSantis won a safely conservative House seat by running against Obama and socialism in 2012, even suggesting that Obama’s face should be on food stamps. — Jeb Lund, The New Republic, "Ron DeSantis Is TNR’s 2020 Scoundrel of the Year," 29 Dec. 2020 All of which raises a question that Sanchez has clearly been wrestling with: Is socialism still alive in Venezuela? — Stefano Pozzebon, CNN, "Venezuela is quietly quitting socialism," 18 Dec. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'socialism.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.