Socialism vs Communism

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 Revolution. Communist parties disdain capitalist
Europe seek to gain power through democracy and democracy and believe power should be exercised by
winning elections. “The people” and not democracy

Individual liberty important. Protection for human Authoritarian state ignores liberty and cracks down on
rights and free speech. criticism and dissent.

Mix of public and private sector. Democratic socialism

State control of all industry. Only very limited role fo
may nationalise key industries, such as gas, transport
free enterprise. Setting up new enterprise requires
and electricity but leaves most private industry
government approval.
unaffected.
 Prices determined by the free market, with some Prices and output set by the government. Can lead to
exceptions, e.g. rent controls. shortages and surpluses.

Redistribution of income through tax and benefits, e.g.

progressive marginal income tax rates and benefits for Equality of income – wages set by the government.
unemployment.

Equality of opportunity main goal. Support free public Equality of outcome. Even those who work hard or ar
education to enable all people to gain qualifications. more intelligent should get the same wage.

Decentralised initiatives, e.g. local worker councils or Centralised economy, with decisions coming from the
local democracy on decisions like new roads. top.

Support for trade unions and right to strike. Also Trade unions not allowed as state claim ‘not needed’
labour market policies, such as a maximum working No right to strike as government always give ‘good’
week and minimum wages. conditions.

Broadly Keynesian economic policies to deal with Direct intervention in economy and claim ‘no
recession, demand management. unemployment’

Progressive tax system No need – wages the same

Subsidised house building. A mixture of private and Mostly public housing with limited scope for private
public ownership property.

Makes use of the existing financial system, but tries to

State control of banks and finance.
reform

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Date retrieved: 4/29/22