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Types of socialism

Variations of the economic philosophy

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Through Economic system, Socialism and Cooperative

Socialist economic systems can be divided into market and non-market forms. The former utilizes markets to allocate inputs and capital goods among economic units. In the latter, planning is utilized along with a system of accounting based on calculation-in-kind to value resources and goods, wherein production is carried out directly for use.

There have been numerous political movements, such as anarchism, communism, the labour movement, Marxism, social democracy, and syndicalism, whose members called themselves socialists under some definition of the term. Some of these interpretations are mutually exclusive and all of them have generated debates over the true meaning of socialism. Different self-described socialists have used socialism to refer to different concepts, such as an economic system, a type of society, a philosophical outlook, a collection of moral values and ideals, or a certain kind of human character. Some definitions of socialism are very vague, while others are so specific that they include only a small minority of the things that have been described as socialism in the past, such as a mode of production, state socialism, or the abolition of wage labour.

Early interpretations

The term socialism was coined in the 1830s and was first used to refer to philosophical, moral, or ethical beliefs concerning the promotion of broad social well-being, rather than any specific political views. Alexandre Vinet, who claimed to have been the first person to use the term, defined socialism simply as "the opposite of individualism". Robert Owen also viewed socialism as a matter of ethics, though he defined the term more specifically than Vinet, referring to the view that human society can and should be improved for the benefit of all. In a similar vein, Pierre-Joseph Proudhon described socialism as "every aspiration towards the amelioration of society".

In the first half of the 19th century, many writers who described themselves as socialists—and who would be later called utopian socialists—wrote descriptions of what they believed to be the ideal human society. Some of them created small communities that put their ideals into practice. A constant feature of these ideal societies was social and economic equality. Because the people who proposed the creation of such societies called themselves socialists, the term socialism came to refer not only to a certain moral doctrine, but also to a type of egalitarian society based on such a doctrine.

Other early advocates of socialism took a more scientific approach by favouring social levelling to create a meritocratic society based upon freedom for individual talent to prosper. For example, Count Henri de Saint-Simon was fascinated by the enormous potential of science and technology and believed a socialist society would eliminate the disorderly aspects of capitalism. He advocated the creation of a society in which each person was ranked according to his or her capacities and rewarded according to his or her work. The key focus of this early socialism was on administrative efficiency and industrialism and a belief that science was the key to progress. Simon's ideas provided a foundation for scientific economic planning and technocratic administration of society.

Other early socialist thinkers, such as Charles Hall and Thomas Hodgskin, based their ideas on David Ricardo's economic theories. They reasoned that the equilibrium value of commodities approximated prices charged by the producer when those commodities were in elastic supply, and that these producer prices corresponded to the cost of the labour—essentially the wages paid—that was required to produce the commodities. The Ricardian socialists viewed profit, interest, and rent as deductions from this exchange-value. These ideas embodied early conceptions of market socialism.

After the development of Karl Marx's theories, many socialist movements and writers adopted definitions of socialism centered on worker ownership or control of productive assets, either through state institutions, cooperatives, or other collective arrangements. In Marxist theory, socialism refers to a transitional stage between capitalism and communism characterized by coordinated production, collective ownership of productive assets, and the eventual reduction of class distinctions. Some other socialist traditions have defined socialism differently and do not necessarily share Marx's stage-based theory of historical development.

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