If we’re not careful, there is a risk of blurring the distinction between socialism and 20th-century communism.
Broadly speaking, socialism proposes significant social or public ownership or control of the means of production, as well as a focus on reducing economic inequality. This can range from democratic socialism and social democracy, which involve high levels of redistribution and a strong welfare state with regulated markets, to proposals for more extensive worker or public ownership within democratic frameworks.
Socialism advocates transferring vital resources (such as land, energy, transport and key industries) from private profit-seekers to public or collective ownership, ensuring they serve societal needs rather than shareholder returns. Privatised utilities such as water, rail and transport provide vivid counterexamples to the ‘private incentives fix everything’ claim, demonstrating profiteering, underinvestment and service breakdowns.
By comparison, communism (in the classical Marxist sense) proposes a stateless, classless society with common ownership of the means of production. This is envisaged as a future stage beyond socialism. ‘Communist’ regimes in the 20th century referred to themselves as socialist on the way to communism, but what we actually witnessed were one-party states with centralised planning and very limited political pluralism.
However, American capitalism often resembles centralised corporate-state collusion that funnels resources to the powerful more than free markets. Large corporations lobby for subsidies, bailouts, tariffs and regulations that entrench their dominance. Think of the bank rescues in 2008, farm bills favouring agribusiness or the favoured status of Big Tech via IP laws and content moderation norms. This creates a de facto ‘corporate socialism’ where public resources underwrite private profits while small firms face barriers.
So, the whole discussion suffers under the inability to take the complexity of the issue into account. Instead we have anecdotal references to corruption and inefficiency on both sides, refusing to accept that the idea of socialism arises out of a feudal state in which the population was exploited and at the disposal of the Landlords or Robber Barons, and subjugated under a monarchy.
There are many political observers who are warning that the digital revolution could lead us back to that kind of dependency, which can only bring about suffering as it did in the past.
