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Social democracy is a
social Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives fro ...
,
economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
, and
political philosophy Political philosophy studies the theoretical and conceptual foundations of politics. It examines the nature, scope, and Political legitimacy, legitimacy of political institutions, such as State (polity), states. This field investigates different ...
within
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
that supports
political Politics () is the set of activities that are associated with decision-making, making decisions in social group, groups, or other forms of power (social and political), power relations among individuals, such as the distribution of Social sta ...
and
economic democracy Economic democracy (sometimes called a democratic economy) is a socioeconomic philosophy that proposes to shift ownership and decision-making power from corporate shareholders and corporate managers (such as a board of directors) to a larger ...
and a gradualist,
reformist Reformism is a political tendency advocating the reform of an existing system or institution – often a political or religious establishment – as opposed to its abolition and replacement via revolution. Within the socialist movement, ref ...
, and democratic approach toward achieving
social equality Social equality is a state of affairs in which all individuals within society have equal rights, liberties, and status, possibly including civil rights, freedom of expression, autonomy, and equal access to certain public goods and social servi ...
. In modern practice, social democracy has taken the form of predominantly
capitalist Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
economies, a robust
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
, policies promoting
social justice Social justice is justice in relation to the distribution of wealth, opportunities, and privileges within a society where individuals' rights are recognized and protected. In Western and Asian cultures, the concept of social justice has of ...
, market regulation, and a more equitable distribution of income. Social democracy maintains a commitment to representative and
participatory democracy Participatory democracy, participant democracy, participative democracy, or semi-direct democracy is a form of government in which Citizenship, citizens participate individually and directly in political decisions and policies that affect their ...
. Common aims include curbing inequality, eliminating the
oppression Oppression is malicious or unjust treatment of, or exercise of power over, a group of individuals, often in the form of governmental authority. Oppression may be overt or covert, depending on how it is practiced. No universally accepted model ...
of
underprivileged Social privilege is an advantage or entitlement that benefits individuals belonging to certain groups, often to the detriment of others. Privileged groups can be advantaged based on social class, wealth, education, caste, age, height, skin colo ...
groups, eradicating
poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...
, and upholding universally accessible public services such as
child care Child care, also known as day care, is the care and supervision of one or more children, typically ranging from three months to 18 years old. Although most parents spend a significant amount of time caring for their child(ren), childcare typica ...
,
education Education is the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
,
elderly care Elderly care, or simply eldercare (also known in parts of the English-speaking world as aged care), serves the needs of old adults. It encompasses assisted living, adult daycare, long-term care, nursing homes (often called residential care), ...
,
health care Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...
, and
workers' compensation Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her emp ...
. Economically, it supports
income redistribution Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, ...
and regulating the economy in the
public interest In social science and economics, public interest is "the welfare or well-being of the general public" and society. While it has earlier philosophical roots and is considered to be at the core of democratic theories of government, often paired ...
. Social democracy has a strong, long-standing connection with
trade unions A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
and the broader
labour movement The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considere ...
. It is supportive of measures to foster greater democratic decision-making in the economic sphere, including
collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and labour rights, rights for ...
and co-determination rights for workers. The history of social democracy stretches back to the 19th-century
labour movement The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considere ...
. Originally a catch-all term for
socialists 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 socia ...
of varying tendencies, after the
Russian Revolution The Russian Revolution was a period of Political revolution (Trotskyism), political and social revolution, social change in Russian Empire, Russia, starting in 1917. This period saw Russia Dissolution of the Russian Empire, abolish its mona ...
, it came to refer to reformist socialists who were strategically opposed to
revolution In political science, a revolution (, 'a turn around') is a rapid, fundamental transformation of a society's class, state, ethnic or religious structures. According to sociologist Jack Goldstone, all revolutions contain "a common set of elements ...
as well as the
authoritarianism Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in democracy, separation of powers, civil liberties, and ...
of the
Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
model, nonetheless the eventual abolition of capitalism was still being upheld as an important end goal during this time. However, by the 1990s social democrats had embraced
mixed economies A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...
with a predominance of
private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...
and promoted the regulation of capitalism over its replacement with a qualitatively different socialist
economic system An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within an economy. It includes the combination of the various institutions, agencies, entities, decision-making proces ...
. Since that time, social democracy has been associated with
Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongl ...
, the
Nordic model The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level colle ...
, and
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
s. Social democracy has been described as the most common form of Western or modern socialism. Amongst social democrats, attitudes towards socialism vary: some retain socialism as a long-term goal, with social democracy being a
political Politics () is the set of activities that are associated with decision-making, making decisions in social group, groups, or other forms of power (social and political), power relations among individuals, such as the distribution of Social sta ...
and
economic democracy Economic democracy (sometimes called a democratic economy) is a socioeconomic philosophy that proposes to shift ownership and decision-making power from corporate shareholders and corporate managers (such as a board of directors) to a larger ...
supporting a gradualist,
reformist Reformism is a political tendency advocating the reform of an existing system or institution – often a political or religious establishment – as opposed to its abolition and replacement via revolution. Within the socialist movement, ref ...
, and democratic approach towards achieving socialism. Others view it as an ethical ideal to guide reforms within capitalism. One way modern social democracy can be distinguished from
democratic socialism Democratic socialism is a left-wing economic ideology, economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and wor ...
is that social democracy aims to strike a balance by advocating for a mixed market economy where capitalism is regulated to address inequalities through social welfare programs and supports private ownership with a strong emphasis on a well-regulated market. In contrast, democratic socialism places greater emphasis on abolishing private property ownership in favor of full economic democracy by means of
cooperative A cooperative (also known as co-operative, coöperative, co-op, or coop) is "an autonomy, autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned a ...
,
decentralized Decentralization or decentralisation is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and gi ...
, or
centralized planning A planned economy is a type of economic system where Investment (macroeconomics), investment, Production (economics), production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A pla ...
systems. Nevertheless, the distinction remains blurred in colloquial settings, and the two terms are commonly used synonymously. The
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
is an offshoot of social democracy which aims to fuse
economic liberalism Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic liberalism ...
with social democratic economic policies and
center-left Centre-left politics is the range of left-wing political ideologies that lean closer to the political centre. Ideologies commonly associated with it include social democracy, social liberalism, progressivism, and green politics. Ideas commonl ...
social policies. It is a reconceptualization of social democracy developed in the 1990s and is embraced by some social democratic parties; some analysts have characterized the Third Way as part of the
neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...
movement.


Definitions


As a tradition of socialism

Social democracy is defined as one of many socialist traditions. As an international
political movement A political movement is a collective attempt by a group of people to change government policy or social values. Political movements are usually in opposition to an element of the status quo, and are often associated with a certain ideology. Some t ...
and
ideology An ideology is a set of beliefs or values attributed to a person or group of persons, especially those held for reasons that are not purely about belief in certain knowledge, in which "practical elements are as prominent as theoretical ones". Form ...
, it aims to achieve socialism through
gradual The gradual ( or ) is a certain chant or hymn in liturgical Christian worship. It is practiced in the Catholic Mass, Lutheran Divine Service, Anglican service and other traditions. It gets its name from the Latin (meaning "step") because i ...
and democratic means. This definition goes back to the influence of both the reformist socialism of Ferdinand Lassalle and the internationalist
revolutionary socialism Revolutionary socialism is a political philosophy, doctrine, and tradition within socialism that stresses the idea that a social revolution is necessary to bring about structural changes in society. More specifically, it is the view that revo ...
advanced by
Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...
and
Friedrich Engels Friedrich Engels ( ;"Engels"
''Random House Webster's Unabridged Dictionary''.
anarchism Anarchism is a political philosophy and Political movement, movement that seeks to abolish all institutions that perpetuate authority, coercion, or Social hierarchy, hierarchy, primarily targeting the state (polity), state and capitalism. A ...
. In one of the first scholarly works on European socialism written for an American audience, Richard T. Ely's 1883 book ''French and German Socialism in Modern Times'', social democrats were characterized as "the extreme wing of the socialists" who were "inclined to lay so much stress on equality of enjoyment, regardless of the value of one's labor, that they might, perhaps, more properly be called communists". In the early 20th century, social democracy came to refer to support for a process of developing society through existing political structures and opposition to revolutionary means, which are often associated with Marxism. Thus whereas in the 19th century, social democracy could be described as "organized Marxism", it became "organized reformism" by the 20th century. In political science, ''democratic socialism'' and ''social democracy'' are sometimes seen as synonyms, while they are distinguished in journalistic use. Under this democratic socialist definition, social democracy is an ideology seeking to gradually build an alternative
socialist economy Socialist economics comprises the economic theories, practices and norms of hypothetical and existing socialist economic systems. A socialist economic system is characterized by social ownership and operation of the means of production that m ...
through the institutions of
liberal democracy Liberal democracy, also called Western-style democracy, or substantive democracy, is a form of government that combines the organization of a democracy with ideas of liberalism, liberal political philosophy. Common elements within a liberal dem ...
. Starting in the post-war period, social democracy was defined as a policy regime advocating the reformation of capitalism to align it with the ethical ideals of
social justice Social justice is justice in relation to the distribution of wealth, opportunities, and privileges within a society where individuals' rights are recognized and protected. In Western and Asian cultures, the concept of social justice has of ...
. What
socialists 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 socia ...
such as
anarchists Anarchism is a political philosophy and movement that seeks to abolish all institutions that perpetuate authority, coercion, or hierarchy, primarily targeting the state and capitalism. Anarchism advocates for the replacement of the state w ...
,
communists Communism () is a sociopolitical, philosophical, and economic ideology within the socialist movement, whose goal is the creation of a communist society, a socioeconomic order centered on common ownership of the means of production, d ...
, social democrats, syndicalists, and some social democratic proponents of the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
share in common is history, specifically that they can all be traced back to the individuals, groups, and literature of the
First International The International Workingmen's Association (IWA; 1864–1876), often called the First International, was a political international which aimed at uniting a variety of different left-wing socialist, social democratic, communist, and anarchist ...
, and have retained some of the terminology and symbolism such as the colour red. How far society should intervene and whether the government, mainly the existing government, is the right vehicle for change are issues of disagreement. As the ''Historical Dictionary of Socialism'' summarizes, "there were general criticisms about the social effects of the private ownership and control of capital", "a general view that the solution to these problems lay in some form of collective control (with the degree of control varying among the proponents of socialism) over the means of production, distribution, and exchange", and "there was agreement that the outcomes of this collective control should be a society that provided social equality and justice, economic protection, and generally a more satisfying life for most people". ''Socialism'' became a catch-all term for the critics of capitalism and industrial society. Social democrats are anticapitalists insofar as criticism about "poverty, low wages, unemployment, economic and social inequality, and a lack of economic security" is linked to the
private ownership Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...
of the
means of production In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the ...
. ''Social democracy'' or ''social democratic'' remains controversial among socialists. Some define it as representing a
Marxist Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflic ...
faction and non-communist socialists or the ''right-wing'' of socialism during the split with
communism Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...
. Others have noted its pejorative use among communists and other socialists. According to
Lyman Tower Sargent Lyman Tower Sargent (born 9 February 1940) is an American academic and professor emeritus of political science at the University of Missouri-St. Louis. Sargent's main academic interests are utopian studies, political theory, American studies an ...
, "''socialism'' refers to ''social'' theories rather than to theories oriented to the individual. Because many communists now call themselves ''democratic socialists'', it is sometimes difficult to know what a political label really means. As a result, ''social democratic'' has become a common new label for democratic socialist political parties."


As a policy regime

As a policy regime, social democracy entails support for a
mixed economy A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...
and ameliorative measures to benefit the
working class The working class is a subset of employees who are compensated with wage or salary-based contracts, whose exact membership varies from definition to definition. Members of the working class rely primarily upon earnings from wage labour. Most c ...
within the framework of
democratic capitalism Democratic capitalism, also referred to as market democracy, is a political and economic system that integrates resource allocation by marginal productivity (synonymous with free-market capitalism), with policies of resource allocation by socia ...
. Social democracy currently depicts a chiefly capitalist economy with state economic regulation in the general interest, state provision of welfare services and state redistribution of income and wealth. Social democratic concepts influence the policies of most Western states since World War 2. Social democracy is frequently considered a practical middle course between capitalism and socialism. Social democracy aims to use democratic collective action for promoting freedom and equality in the economy and opposes what is seen as inequality and oppression that laissez-faire capitalism causes. In the 21st century, it has become commonplace to define social democracy in reference to Northern and Western European countries, and their model of a
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
with a
corporatist Corporatism is an ideology and political system of interest representation and policymaking whereby corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come together and negotiate contracts ...
system of
collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and labour rights, rights for ...
. Social democracy has also been used synonymously with the
Nordic model The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level colle ...
. Henning Meyer and Jonathan Rutherford associate social democracy with the socioeconomic order in Europe from the post-war period until the early 1990s. Social democratic roots are also observed in Latin America during the early 20th century; this was the case in Uruguay during the two presidential terms of
José Batlle y Ordóñez José Pablo Torcuato Batlle y Ordóñez ( or ; 23 May 1856 – 20 October 1929), nicknamed ''Don Pepe'', was a prominent Uruguayan politician who served two terms as President of Uruguay for the Colorado Party. The son of a former president, ...
. While the welfare state has been accepted across the political spectrum, particularly by
conservatives Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civilizati ...
(
Christian democrats Christian democracy is an ideology inspired by Christian social teaching to respond to the challenges of contemporary society and politics. Christian democracy has drawn mainly from Catholic social teaching and neo-scholasticism, as well a ...
) and liberals (
social liberals Social liberalism is a political philosophy and variety of liberalism that endorses social justice, social services, a mixed economy, and the expansion of civil and political rights, as opposed to classical liberalism which favors limited g ...
), one notable difference is that socialists see the welfare state "not merely to provide benefits but to build the foundation for emancipation and self-determination". In the 21st century, a social democratic policy regime may further be distinguished by a support for an increase in
welfare Welfare may refer to: Philosophy *Well-being (happiness, prosperity, or flourishing) of a person or group * Utility in utilitarianism * Value in value theory Economics * Utility, a general term for individual well-being in economics and decision ...
policies or an increase in
public service A public service or service of general (economic) interest is any service intended to address the needs of aggregate members of a community, whether provided directly by a public sector agency, via public financing available to private busin ...
s. Some distinguish between ideological social democracy as part of the broad socialist movement and social democracy as a policy regime. They call the first ''classical social democracy'' or ''classical socialism'', and the latter as ''competitive socialism'', ''liberal socialism'', ''neo-social democracy'', or ''new social democracy''.


As a name for political parties

Many socialist parties in several countries have been, or are called ''Social Democratic''. In the 19th century, ''social democrat'' was a broad catch-all for international socialists owing their primary ideological allegiance to Lassalle or Marx, in contrast to those advocating various forms of
utopian socialism Utopian socialism is the term often used to describe the first current of modern socialism and socialist thought as exemplified by the work of Henri de Saint-Simon, Charles Fourier, Étienne Cabet, and Robert Owen. Utopian socialism is often de ...
. Many parties in this era described themselves as ''Social Democrats'', including the
General German Workers' Association The General German Workers' Association (, ADAV) was a German political party founded on 23 May 1863 in Leipzig, Kingdom of Saxony by Ferdinand Lassalle. It was the first organized mass working-class party in history. The organization existed ...
and the
Social Democratic Workers' Party of Germany The Social Democratic Workers' Party of Germany (, SDAP) was a Marxist socialist political party in the North German Confederation during unification. Founded in Eisenach in 1869, the SDAP endured through the early years of the German Empire. ...
, which merged to form the
Social Democratic Party of Germany The Social Democratic Party of Germany ( , SPD ) is a social democratic political party in Germany. It is one of the major parties of contemporary Germany. Saskia Esken has been the party's leader since the 2019 leadership election together w ...
, the
Social Democratic Federation The Social Democratic Federation (SDF) was established as Britain's first organised socialist political party by H. M. Hyndman, and had its first meeting on 7 June 1881. Those joining the SDF included William Morris, George Lansbury, James ...
in Britain, and the
Russian Social Democratic Labour Party The Russian Social Democratic Labour Party (RSDLP), also known as the Russian Social Democratic Workers' Party (RSDWP) or the Russian Social Democratic Party (RSDP), was a socialist political party founded in 1898 in Minsk, Russian Empire. The ...
. ''Social Democrat'' continued to be used in this context until the
Bolshevik Revolution The October Revolution, also known as the Great October Socialist Revolution (in Soviet historiography), October coup, Bolshevik coup, or Bolshevik revolution, was the second of two revolutions in Russia in 1917. It was led by Vladimir L ...
of October 1917, when ''Communist'' came into vogue for individuals and organizations espousing a revolutionary road to socialism. In the 20th century, the term came to be associated with the positions of the German and Swedish parties. The first advocated
revisionist Marxism In Marxist philosophy, revisionism, otherwise known as Marxist reformism, represents various ideas, principles, and theories that are based on a reform or revision of Marxism. According to their critics, this involves a significant revision of ...
, while the second advocated a comprehensive
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
. By the 21st century, parties advocating social democracy include Labour, Left, and some Green parties. Most social democratic parties consider themselves democratic socialists and are categorized as socialists. They continue to reference socialism, either as a post-capitalist order or, in more ethical terms, as a just society, described as representing democratic socialism, without any explicit reference to the economic system or its structure. Parties such as the
Social Democratic Party of Germany The Social Democratic Party of Germany ( , SPD ) is a social democratic political party in Germany. It is one of the major parties of contemporary Germany. Saskia Esken has been the party's leader since the 2019 leadership election together w ...
and the
Swedish Social Democratic Party The Swedish Social Democratic Party, formally the Swedish Social Democratic Workers' Party ( , S or SAP), usually referred to as The Social Democrats ( ), is a social democratic political party in Sweden. The party is member of the Progressiv ...
describe their goal as developing democratic socialism, with social democracy as the principle of action. In the 21st century, European social democratic parties represent the
centre-left Centre-left politics is the range of left-wing political ideologies that lean closer to the political centre. Ideologies commonly associated with it include social democracy, social liberalism, progressivism, and green politics. Ideas commo ...
and most are part of the
Party of European Socialists The Party of European Socialists (PES) is a Social democracy, social democratic European political party. The PES comprises national-level political parties from all the European Economic Area, European economic area states (EEA) plus the Unit ...
, while democratic socialist parties are to their left within the
Party of the European Left The Party of the European Left (PEL), or European Left (EL), is a European political party that operates as an association of democratic socialist and communist political parties in the European Union and other European countries. It was formed ...
. Many of those social democratic parties are members of the
Socialist International The Socialist International (SI) is a political international or worldwide organisation of political parties which seek to establish democratic socialism, consisting mostly of Social democracy, social democratic political parties and Labour mov ...
, including several democratic socialist parties, whose Frankfurt Declaration declares the goal of developing democratic socialism. Others are also part of the
Progressive Alliance The Progressive Alliance (PA) is a political international of progressive and social democratic political parties and organisations founded on 22 May 2013 in Leipzig, Germany. The alliance was formed as an alternative to the existing Socia ...
, founded in 2013 by most contemporary or former member parties of the Socialist International.


As Marxist revisionism

Social democracy has been seen as a revision of
orthodox Marxism Orthodox Marxism is the body of Marxist thought which emerged after the deaths of Karl Marx and Friedrich Engels in the late 19th century, expressed in its primary form by Karl Kautsky. Kautsky's views of Marxism dominated the European Marxis ...
, although this has been described as misleading for modern social democracy.
Marxist revisionist In Marxist philosophy, revisionism, otherwise known as Marxist reformism, represents various ideas, principles, and theories that are based on a reform or revision of Marxism. According to their critics, this involves a significant revision of ...
Eduard Bernstein Eduard Bernstein (; 6 January 1850 – 18 December 1932) was a German Marxist theorist and politician. A prominent member of the Social Democratic Party of Germany (SPD), he has been both condemned and praised as a "Revisionism (Marxism), revisi ...
's views influenced and laid the groundwork for developing post-war social democracy as a policy regime, Labour revisionism, and the neo-revisionism of the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
. This definition of social democracy is focused on ethical terms, with the
type of socialism Type may refer to: Science and technology Computing * Typing, producing text via a keyboard, typewriter, etc. * Data type, collection of values used for computations. * File type * TYPE (DOS command), a command to display contents of a file. * ...
advocated being
ethical Ethics is the philosophical study of moral phenomena. Also called moral philosophy, it investigates normative questions about what people ought to do or which behavior is morally right. Its main branches include normative ethics, applied e ...
and liberal. Bernstein described socialism and social democracy in particular as organized liberalism; in this sense,
liberalism Liberalism is a Political philosophy, political and moral philosophy based on the Individual rights, rights of the individual, liberty, consent of the governed, political equality, the right to private property, and equality before the law. ...
is the predecessor and precursor of socialism, whose restricted view of
freedom Freedom is the power or right to speak, act, and change as one wants without hindrance or restraint. Freedom is often associated with liberty and autonomy in the sense of "giving oneself one's own laws". In one definition, something is "free" i ...
is to be
socialized In sociology, socialization (also socialisation – see spelling differences) is the process of internalizing the norms and ideologies of society. Socialization encompasses both learning and teaching and is thus "the means by which social and ...
, while democracy must entail social democracy. For those social democrats, who still describe and see themselves as socialists, ''socialism'' is used in ethical or moral terms, representing democracy, egalitarianism, and social justice rather than a specifically socialist economic system. Under this type of definition, social democracy's goal is that of advancing those values within a capitalist
market economy A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a mark ...
, as its support for a mixed economy no longer denotes the coexistence between
private Private or privates may refer to: Music * "In Private", by Dusty Springfield from the 1990 album ''Reputation'' * Private (band), a Denmark-based band * "Private" (Ryōko Hirosue song), from the 1999 album ''Private'', written and also recorded ...
and
public ownership State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed t ...
or that between
planning Planning is the process of thinking regarding the activities required to achieve a desired goal. Planning is based on foresight, the fundamental capacity for mental time travel. Some researchers regard the evolution of forethought - the cap ...
and
market mechanism In economics, the market mechanism is a mechanism by which the use of money exchanged by buyers and sellers with an open and understood system of value and time trade-offs in a market tends to optimize distribution of goods and services in at ...
s but rather, it represents
free market In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...
s combined with
government intervention A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reas ...
and
regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. Fo ...
.


Philosophy

As a form of reformist
democratic socialism Democratic socialism is a left-wing economic ideology, economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and wor ...
, social democracy rejects the either/or interpretation of capitalism versus socialism. It claims that fostering a progressive evolution of capitalism will gradually result in the evolution of a capitalist economy into a socialist economy. All citizens should be legally entitled to certain social rights: universal access to public services such as education, health care, workers' compensation, and other services, including child care and care for the elderly. Social democrats advocate freedom from discrimination based on differences in ability/disability, age,
ethnicity An ethnicity or ethnic group is a group of people with shared attributes, which they Collective consciousness, collectively believe to have, and long-term endogamy. Ethnicities share attributes like language, culture, common sets of ancestry, ...
,
gender Gender is the range of social, psychological, cultural, and behavioral aspects of being a man (or boy), woman (or girl), or third gender. Although gender often corresponds to sex, a transgender person may identify with a gender other tha ...
, language, race, religion,
sexual orientation Sexual orientation is an enduring personal pattern of romantic attraction or sexual attraction (or a combination of these) to persons of the opposite sex or gender, the same sex or gender, or to both sexes or more than one gender. Patterns ar ...
, and
social class A social class or social stratum is a grouping of people into a set of Dominance hierarchy, hierarchical social categories, the most common being the working class and the Bourgeoisie, capitalist class. Membership of a social class can for exam ...
. Later in their lives,
Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...
and
Friedrich Engels Friedrich Engels ( ;"Engels"
''Random House Webster's Unabridged Dictionary''.
social revolution Social revolutions are sudden changes in the structure and nature of society. These revolutions are usually recognized as having transformed society, economy, culture, philosophy, and technology along with but more than just the political system ...
. In developing social democracy,
Eduard Bernstein Eduard Bernstein (; 6 January 1850 – 18 December 1932) was a German Marxist theorist and politician. A prominent member of the Social Democratic Party of Germany (SPD), he has been both condemned and praised as a "Revisionism (Marxism), revisi ...
rejected
orthodox Marxism Orthodox Marxism is the body of Marxist thought which emerged after the deaths of Karl Marx and Friedrich Engels in the late 19th century, expressed in its primary form by Karl Kautsky. Kautsky's views of Marxism dominated the European Marxis ...
's revolutionary and materialist foundations. Rather than
class conflict In political science, the term class conflict, class struggle, or class war refers to the economic antagonism and political tension that exist among social classes because of clashing interests, competition for limited resources, and inequali ...
and
socialist revolution Revolutionary socialism is a political philosophy, doctrine, and tradition within socialism that stresses the idea that a social revolution is necessary to bring about structural changes in society. More specifically, it is the view that revolu ...
, Bernstein's
Marxist revisionism In Marxist philosophy, revisionism, otherwise known as Marxist reformism, represents various ideas, principles, and theories that are based on a reform or revision of Marxism. According to their critics, this involves a significant revision of ...
reflected that socialism could be achieved through cooperation between people regardless of class. Nonetheless, Bernstein paid deference to Marx, describing him as the father of social democracy but declaring that it was necessary to revise Marx's thought in light of changing conditions. Influenced by the gradualist platform favoured by the Fabian movement in Britain, Bernstein advocated a similar evolutionary approach to socialist politics that he termed ''evolutionary socialism''. Evolutionary means include
representative democracy Representative democracy, also known as indirect democracy or electoral democracy, is a type of democracy where elected delegates represent a group of people, in contrast to direct democracy. Nearly all modern Western-style democracies func ...
and cooperation between people regardless of class. Bernstein accepted the Marxist analysis that the creation of socialism is interconnected with the evolution of capitalism.
August Bebel Ferdinand August Bebel (; 22 February 1840 – 13 August 1913) was a German socialist activist and politician. He was one of the principal founders of the Social Democratic Party of Germany (SPD). Bebel, a woodworker by trade, co-founded the Sa ...
, Bernstein, Engels,
Wilhelm Liebknecht Wilhelm Martin Philipp Christian Ludwig Liebknecht (; 29 March 1826 – 7 August 1900) was a German socialist activist and politician. He was one of the principal founders of the Social Democratic Party of Germany (SPD).Carl Wilhelm Tölcke are all considered founders of social democracy in Germany. However, Bernstein and Lassalle, along with labourists and reformists such as
Louis Blanc Louis Jean Joseph Charles Blanc ( ; ; 29 October 1811 – 6 December 1882) was a French Socialism, socialist politician, journalist and historian. He called for the creation of cooperatives in order to job guarantee, guarantee employment for t ...
in France, led to the widespread association of social democracy with socialist reformism. While Lassalle was a reformist
state socialist State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition ...
, Bernstein predicted a long-term coexistence of democracy with a
mixed economy A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...
during the reforming of capitalism into socialism and argued that socialists needed to accept this. This mixed economy would involve
public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociology, sociological concept of the ''Öf ...
,
cooperative A cooperative (also known as co-operative, coöperative, co-op, or coop) is "an autonomy, autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned a ...
, and
private enterprise A privately held company (or simply a private company) is a company whose Stock, shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the Private equi ...
s, and it would be necessary for an extended period before private enterprises evolve of their own accord into cooperative enterprises. Bernstein supported state ownership only for certain parts of the economy that the state could best manage and rejected a mass scale of state ownership as being too burdensome to be manageable. Bernstein was an advocate of Kantian socialism and
neo-Kantianism In late modern philosophy, neo-Kantianism () was a revival of the 18th-century philosophy of Immanuel Kant. The neo-Kantians sought to develop and clarify Kant's theories, particularly his concept of the thing-in-itself and his moral philosophy ...
. Although unpopular early on, his views became mainstream after World War I. In ''
The Future of Socialism ''The Future of Socialism'' is a 1956 book by Anthony Crosland. It was one of the most influential books in post-war British Labour Party (UK), Labour Party thinking. It was the seminal work of the 'revisionist' school of Labour politics. The boo ...
'' (1956),
Anthony Crosland Charles Anthony Raven Crosland (29 August 191819 February 1977) was a British Labour Party (UK), Labour Party politician and author. A social democrat on the right wing of the Labour Party, he was a prominent socialist intellectual. His influe ...
argued that "traditional capitalism has been reformed and modified almost out of existence, and it is with a quite different form of society that socialists must now concern themselves. Pre-war anti-capitalism will give us very little help", for a new kind of capitalism required a new kind of socialism. Crosland believed that these features of reformed managerial capitalism were irreversible, but it has been argued within the Labour Party and by others that
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was a British stateswoman who served as Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of th ...
and
Ronald Reagan Ronald Wilson Reagan (February 6, 1911 – June 5, 2004) was an American politician and actor who served as the 40th president of the United States from 1981 to 1989. He was a member of the Republican Party (United States), Republican Party a ...
brought about its reversal in the 1970s and 1980s. Although the post-war consensus represented a period where social democracy was "most buoyant", it has been argued that "post-war social democracy had been altogether too confident in its analysis" because "gains which were thought to be permanent turned out to be conditional and as the reservoir of capitalist growth showed signs of drying up". In ''Socialism Now'' (1974), Crosland argued that " ch more should have been achieved by a Labour Government in office and Labour pressure in opposition. Against the dogged resistance to change, we should have pitted a stronger will to change. I conclude that a move to the Left is needed". In ''Origin, Ideology and Transformation of Political Parties: East-Central and Western Europe Compared'', Vít Hloušek and Lubomír Kopecek explain how socialist parties have evolved from the 19th to the early 21st centuries. As the number of people in traditional working-class occupations such as factory workers and miners declined, socialists have successfully widened their appeal to the middle class by diluting their ideology; however, there is still continuity between parties such as the SPD, the Labour Party in Britain, and other socialist parties which remain part of the same ''famille spirituelle'', or ideological party family, as outlined by most political scientists. For many social democrats,
Marxism Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, ...
is loosely held to be valuable for its emphasis on changing the world for a more just, better future.


History

During the late 19th century and the early 20th century, social democracy was a broad labour movement within socialism that aimed to replace
private ownership Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...
with
social ownership Social ownership is a type of property where an asset is recognized to be in the possession of society as a whole rather than individual members or groups within it. Social ownership of the means of production is the defining characteristic of ...
of the means of production, distribution and exchange, taking influence from both
Marxism Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, ...
and the supporters of Ferdinand Lassalle. By 1868–1869, the socialism associated with
Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...
had become the official theoretical basis of the first social democratic party established in Europe, the
Social Democratic Workers' Party of Germany The Social Democratic Workers' Party of Germany (, SDAP) was a Marxist socialist political party in the North German Confederation during unification. Founded in Eisenach in 1869, the SDAP endured through the early years of the German Empire. ...
. In the early 20th century, the German social democratic politician
Eduard Bernstein Eduard Bernstein (; 6 January 1850 – 18 December 1932) was a German Marxist theorist and politician. A prominent member of the Social Democratic Party of Germany (SPD), he has been both condemned and praised as a "Revisionism (Marxism), revisi ...
rejected
orthodox Marxist Orthodox Marxism is the body of Marxist thought which emerged after the deaths of Karl Marx and Friedrich Engels in the late 19th century, expressed in its primary form by Karl Kautsky. Kautsky's views of Marxism dominated the European Marxist ...
ideas about the inevitable progression of history and the need for
revolution In political science, a revolution (, 'a turn around') is a rapid, fundamental transformation of a society's class, state, ethnic or religious structures. According to sociologist Jack Goldstone, all revolutions contain "a common set of elements ...
, advancing instead the position that socialism should be grounded in ethical and moral arguments and achieved through
gradual The gradual ( or ) is a certain chant or hymn in liturgical Christian worship. It is practiced in the Catholic Mass, Lutheran Divine Service, Anglican service and other traditions. It gets its name from the Latin (meaning "step") because i ...
legislative
reform Reform refers to the improvement or amendment of what is wrong, corrupt, unsatisfactory, etc. The modern usage of the word emerged in the late 18th century and is believed to have originated from Christopher Wyvill's Association movement, which ...
. Bernstein's ideas were initially not well received; his party maintained the position that reforms should be pursued only as a means to an eventual revolution, not as a substitute for it. Yet, Bernstein's ideas would have growing influence, particularly after the First World War. The
Russian Revolution The Russian Revolution was a period of Political revolution (Trotskyism), political and social revolution, social change in Russian Empire, Russia, starting in 1917. This period saw Russia Dissolution of the Russian Empire, abolish its mona ...
was a pivotal moment that furthered the division between reformists and revolutionary socialists. Those supporting the
October Revolution The October Revolution, also known as the Great October Socialist Revolution (in Historiography in the Soviet Union, Soviet historiography), October coup, Bolshevik coup, or Bolshevik revolution, was the second of Russian Revolution, two r ...
renamed themselves as ''Communists'' while those opposing the
Bolshevik The Bolsheviks, led by Vladimir Lenin, were a radical Faction (political), faction of the Marxist Russian Social Democratic Labour Party (RSDLP) which split with the Mensheviks at the 2nd Congress of the Russian Social Democratic Labour Party, ...
s retained the ''Social Democrat'' label. While both groups technically shared the goal of a
communist society In Marxist thought, a communist society or the communist system is the type of society and economic system postulated to emerge from technological advances in the productive forces, representing the ultimate goal of the political ideology of ...
that fully realized the principle of "
from each according to his ability, to each according to his need "From each according to his ability, to each according to his needs" () is a slogan popularised by Karl Marx in his 1875 '' Critique of the Gotha Programme''. The principle refers to free access to and distribution of goods, capital and services. ...
", the Communists sought to distance themselves from to ''Social Democracy'''s association with reformism. The Communists also sought to distinguish themselves from the socialists that had supported the imperialist
Great War World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
and thus betrayed
proletarian internationalism Proletarian internationalism, sometimes referred to as international socialism, is the perception of all proletarian revolutions as being part of a single global class struggle rather than separate localized events. It is based on the theory th ...
. This reformist–revolutionary division culminated in the German Revolution of 1919, in which the Communists wanted to overthrow the German government and establish a
soviet republic A soviet republic (from ), also called council republic, is a republic in which the government is formed of soviets (workers' councils) and politics are based on soviet democracy. During the Revolutions of 1917–1923, various revolutionary ...
like Russia, while the Social Democrats wanted to preserve it as what came to be known as the
Weimar Republic The Weimar Republic, officially known as the German Reich, was the German Reich, German state from 1918 to 1933, during which it was a constitutional republic for the first time in history; hence it is also referred to, and unofficially proclai ...
. Thus social democracy went from a "Marxist revolutionary" doctrine into a form of "moderate parliamentary socialism". The
Bolsheviks The Bolsheviks, led by Vladimir Lenin, were a radical Faction (political), faction of the Marxist Russian Social Democratic Labour Party (RSDLP) which split with the Mensheviks at the 2nd Congress of the Russian Social Democratic Labour Party, ...
split from the
Second International The Second International, also called the Socialist International, was a political international of Labour movement, socialist and labour parties and Trade union, trade unions which existed from 1889 to 1916. It included representatives from mo ...
and created their own separate
Communist International The Communist International, abbreviated as Comintern and also known as the Third International, was a political international which existed from 1919 to 1943 and advocated world communism. Emerging from the collapse of the Second Internationa ...
(Comintern) in 1919 that sought to rally revolutionary social democrats together for socialist revolution. With this split, the reformists founded the
Labour and Socialist International The Labour and Socialist International (LSI) was an international organization of socialist and labourist parties, active between 1923 and 1940. The group was established through a merger of the rival Vienna International and the Berne Intern ...
(LSI) in 1923. The LSI had a history of rivalry with the Comintern, with which it competed over the leadership of the international socialist and labour movement. During the 1920s and 1930s, social democracy became dominant in the socialist movement, mainly associated with reformist socialism while
communism Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...
represented revolutionary socialism. Under the influence of politicians like
Carlo Rosselli Carlo Alberto Rosselli (16 November 18999 June 1937) was an Italian political leader, journalist, historian, philosopher and anti-fascist activist, first in Italy and then abroad. He developed a theory of reformist, non-Marxist socialism inspir ...
in Italy, social democrats began disassociating themselves from orthodox Marxism altogether as represented by
Marxism–Leninism Marxism–Leninism () is a communist ideology that became the largest faction of the History of communism, communist movement in the world in the years following the October Revolution. It was the predominant ideology of most communist gov ...
, embracing
liberal socialism Liberal socialism is a political philosophy that incorporates Liberalism, liberal principles to socialism. This synthesis sees liberalism as the political theory that takes the inner freedom of the human spirit as a given and adopts liberty a ...
,
Keynesianism Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongl ...
, and appealing to morality rather than any consistent systematic,
scientific Science is a systematic discipline that builds and organises knowledge in the form of testable hypotheses and predictions about the universe. Modern science is typically divided into twoor threemajor branches: the natural sciences, which stu ...
, or
materialist Materialism is a form of philosophical monism according to which matter is the fundamental substance in nature, and all things, including mental states and consciousness, are results of material interactions. According to philosophical materia ...
worldview. Social democracy appealed to
communitarian Communitarianism is a philosophy that emphasizes the connection between the individual and the community. Its overriding philosophy is based on the belief that a person's social identity and personality are largely molded by community relation ...
,
corporatist Corporatism is an ideology and political system of interest representation and policymaking whereby corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come together and negotiate contracts ...
, and sometimes
nationalist Nationalism is an idea or movement that holds that the nation should be congruent with the State (polity), state. As a movement, it presupposes the existence and tends to promote the interests of a particular nation,Anthony D. Smith, Smith, A ...
sentiments while rejecting the
economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
and
technological determinism Technological determinism is a reductionist theory in assuming that a society's technology progresses by following its own internal logic of efficiency, while determining the development of the social structure and cultural values. The term is ...
generally characteristic of orthodox Marxism and
economic liberalism Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic liberalism ...
. By the post-
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
period and its economic consensus and expansion, most social democrats in Europe had abandoned their ideological connection to orthodox Marxism. They shifted their emphasis toward social policy reform as a compromise between
capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
to
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
. According to
Michael Harrington Edward Michael Harrington Jr. (February 24, 1928 – July 31, 1989) was an American democratic socialist. As a writer, he was best known as the author of '' The Other America'' (1962). Harrington was also a political activist, theorist, profess ...
, the primary reason for this was the perspective that viewed the Stalinist-era
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
as having succeeded in usurping the legacy of Marxism and distorting it in propaganda to justify
totalitarianism Totalitarianism is a political system and a form of government that prohibits opposition from political parties, disregards and outlaws the political claims of individual and group opposition to the state, and completely controls the public s ...
. In its foundation, the
Socialist International The Socialist International (SI) is a political international or worldwide organisation of political parties which seek to establish democratic socialism, consisting mostly of Social democracy, social democratic political parties and Labour mov ...
denounced the Bolshevik-inspired communist movement, "for tfalsely claims a share in the Socialist tradition". Furthermore, core tenets of Marxism have been regarded by social democrats as having become obsolete, including the prediction that the working class was the decisive class with the development of capitalism. In their view, this did not materialize in the aftermath of mass industrialization during World War II. In Britain, the social democratic
Gaitskellites Gaitskellism was the ideology of a faction in the British Labour Party in the 1950s and early 1960s which opposed many of the economic policies of the trade unions, especially nationalisation and control of the economy. Theoretically, it repudi ...
emphasized the goals of
personal liberty Liberty is the state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views. The concept of liberty can vary depending on perspective and context. In the Constitutional ...
,
social welfare Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance p ...
, and
social equality Social equality is a state of affairs in which all individuals within society have equal rights, liberties, and status, possibly including civil rights, freedom of expression, autonomy, and equal access to certain public goods and social servi ...
. The Gaitskellites were part of a political consensus between the Labour and
Conservative Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
parties, famously dubbed
Butskellism The post-war consensus, sometimes called the post-war compromise, was the economic order and social model of which the major political parties in post-war Britain shared a consensus supporting view, from the end of World War II in Europe in 1 ...
. Some social democratic Third Way figures such as
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is ...
and
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party (UK), Leader of the Labour Party from 1994 to 2007. He was Leader ...
, who has described himself as a Christian socialist and a socialist in ethical terms, insist that they are socialists, for they claim to believe in the same values that their anti-Third Way critics do. According to those self-proclaimed social democratic modernizers,
Clause IV Clause IV is part of the Labour Party Rule Book which sets out the aims and values of the British Labour Party. The original clause, adopted in 1918, called for common ownership of industry, and proved controversial in later years; Hugh Gaitskel ...
's open advocacy of state socialism was alienating potential middle-class Labour supporters, and nationalization policies had been so thoroughly attacked by neoliberal economists and politicians, including rhetorical comparisons by the right of state-owned industry in the West to that in the Soviet Union and the Eastern Bloc, and nationalizations and state socialism became unpopular.
Thatcherite Thatcherism is a form of British conservative ideology named after Conservative Party (UK), Conservative Party leader Margaret Thatcher that relates to not just her political platform and particular policies but also her personal character a ...
Conservatives were adept at condemning
state-owned enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...
s as economically inefficient. For the Gaitskellites, nationalization was not essential to achieve all major socialist objectives;
public ownership State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed t ...
and
nationalization Nationalization (nationalisation in British English) is the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization contrasts with p ...
were not explicitly rejected but were seen as merely one of numerous useful devices. According to social democratic modernizers like Blair, nationalization policies had become politically unviable by the 1990s. During the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
development of social democracy, social democrats adjusted to the neoliberal political climate that had existed since the 1980s. Those social democrats recognized that outspoken
opposition to capitalism Anti-capitalism is a political ideology and movement encompassing a variety of attitudes and ideas that oppose capitalism. Anti-capitalists seek to combat the worst effects of capitalism and to eventually replace capitalism with an alternative ...
was politically non-viable and that accepting the powers that be, seeking to challenge
free-market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
and ''
laissez-faire ''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...
'' variations of capitalism, was a more immediate concern. The Third Way stands for a modernized social democracy, but the social democracy that remained committed to the gradual abolition of capitalism and social democrats opposed to the Third Way merged into democratic socialism. Although social democracy originated as a revolutionary socialist or communist movement, one distinction between democratic socialism and social democracy is that the former can include revolutionary means. The latter proposes
representative democracy Representative democracy, also known as indirect democracy or electoral democracy, is a type of democracy where elected delegates represent a group of people, in contrast to direct democracy. Nearly all modern Western-style democracies func ...
under the
rule of law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
as the only acceptable constitutional form of government. During the Great Recession, Social Democratic parties in Europe increasingly adopted
austerity In economic policy, austerity is a set of Political economy, political-economic policies that aim to reduce government budget deficits through Government spending, spending cuts, tax increases, or a combination of both. There are three prim ...
as a policy response to the economic crisis, shifting away from the traditional Keynesian response of
deficit spending Within the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit, the opposite of budget surplus. The term may be applied to the budg ...
. According to Björn Bremer, this shift in thinking was due to the influence of
supply-side economics Supply-side economics is a Macroeconomics, macroeconomic theory postulating that economic growth can be most effectively fostered by Tax cuts, lowering taxes, Deregulation, decreasing regulation, and allowing free trade. According to supply- ...
on Social Democratic leaders and by electoral motivations whereby Social Democrats wanted to appear economically competent to voters by adopting orthodox fiscal policies.


Social democracy and democratic socialism

Social democracy has some significant overlap in practical policy positions with democratic socialism, although they are usually distinguished from each other. In Britain, the revised version of
Clause IV Clause IV is part of the Labour Party Rule Book which sets out the aims and values of the British Labour Party. The original clause, adopted in 1918, called for common ownership of industry, and proved controversial in later years; Hugh Gaitskel ...
to the Labour Party Constitution, which was implemented in the 1990s by the
New Labour New Labour is the political philosophy that dominated the history of the British Labour Party from the mid-late 1990s to 2010 under the leadership of Tony Blair and Gordon Brown. The term originated in a conference slogan first used by the ...
faction led by
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party (UK), Leader of the Labour Party from 1994 to 2007. He was Leader ...
, affirms a formal commitment to democratic socialism, describing it as a modernized form of social democracy; however, it no longer commits the party to public ownership of industry and in its place advocates "the enterprise of the market and the rigour of competition" along with "high quality public services either owned by the public or accountable to them". Many social democrats "refer to themselves as socialists or democratic socialists", and some such as Blair "use or have used these terms interchangeably". Others argue that "there are clear differences between the three terms, and preferred to describe their own political beliefs by using the term 'social democracy' only". ''Democratic socialism'' represents social democracy before the 1970s, when the
post-war displacement of Keynesianism The post-war displacement of Keynesianism involved the replacement of Keynesian economics as the leading theoretical influence on economic life in the developed world. Similarly, the allied discipline known as development economics was largely disp ...
by
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of policy-makers in controlling the amount of money in circulation. It gained prominence in the 1970s, but was mostly abandoned as a direct guidance to monetar ...
and neoliberalism caused many social democratic parties to adopt the Third Way ideology, accepting
capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
as the ''
status quo is a Latin phrase meaning the existing state of affairs, particularly with regard to social, economic, legal, environmental, political, religious, scientific or military issues. In the sociological sense, the ''status quo'' refers to the curren ...
'' for the time being and redefining
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
in a way that maintains the capitalist structure intact. Like modern social democracy, democratic socialism tends to follow a gradual or evolutionary path to socialism rather than a revolutionary one. Policies commonly supported are
Keynesian Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...
and include some degree of
regulation over the economy Regulatory economics is the application of law by government or regulatory agencies for various economics-related purposes, including remedying market failure, protecting the environment and economic management. Regulation Regulation is genera ...
,
social insurance Social insurance is a form of Social protection, social welfare that provides insurance against economic risks. The insurance may be provided publicly or through the subsidizing of private insurance. In contrast to other forms of Welfare spend ...
schemes, public
pension A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a " defined benefit plan", wh ...
programs, and a gradual expansion of
public ownership State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed t ...
over major and strategic industries.


Internal debates

During the late 20th century, those labels were embraced, contested and rejected due to the emergence of developments within the European left, such as
Eurocommunism Eurocommunism was a trend in the 1970s and 1980s within various Western European communist parties, which said they had developed a theory and practice of social transformation more relevant for Western Europe. During the Cold War, they sough ...
, the rise of neoliberalism, the
fall of the Soviet Union The Soviet Union was formally dissolved as a sovereign state and subject of international law on 26 December 1991 by Declaration No. 142-N of the Soviet of Nationalities, Soviet of the Republics of the Supreme Soviet of the Soviet Union. :s: ...
and the
Revolutions of 1989 The revolutions of 1989, also known as the Fall of Communism, were a revolutionary wave of liberal democracy movements that resulted in the collapse of most Communist state, Marxist–Leninist governments in the Eastern Bloc and other parts ...
, the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
, and the rise of anti-austerity and Occupy movements due to the
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
and the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
, the causes of which have been attributed by some to the neoliberal shift and deregulation economic policies. This latest development contributed to the rise of politicians, such as
Jeremy Corbyn Jeremy Bernard Corbyn (; born 26 May 1949) is a British politician who has been Member of Parliament (United Kingdom), Member of Parliament (MP) for Islington North (UK Parliament constituency), Islington North since 1983. Now an Independent ...
in Britain and
Bernie Sanders Bernard Sanders (born September8, 1941) is an American politician and activist who is the Seniority in the United States Senate, senior United States Senate, United States senator from the state of Vermont. He is the longest-serving independ ...
in the United States, who rejected
centrist Centrism is the range of political ideologies that exist between left-wing politics and right-wing politics on the left–right political spectrum. It is associated with moderate politics, including people who strongly support moderate policie ...
politicians that supported
triangulation In trigonometry and geometry, triangulation is the process of determining the location of a point by forming triangles to the point from known points. Applications In surveying Specifically in surveying, triangulation involves only angle m ...
within the Labour and Democratic parties. According to both right-wing critics and supporters alike, policies such as universal
health care Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...
and
education Education is the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
are "pure Socialism" because they are opposed to "the hedonism of capitalist society". Because of this overlap, ''democratic socialism'' refers to European socialism as represented by social democracy, especially in the United States, where it is tied to the
New Deal The New Deal was a series of wide-reaching economic, social, and political reforms enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938, in response to the Great Depression in the United States, Great Depressi ...
. Some democratic socialists who follow social democracy support practical, progressive reforms of capitalism and are more concerned with administrating and humanising it, with socialism relegated to the indefinite future. Other democratic socialists want to go beyond mere meliorist reforms and advocate the systematic transformation of the
mode of production In the Marxist theory of historical materialism, a mode of production (German: ''Produktionsweise'', "the way of producing") is a specific combination of the: * Productive forces: these include human labour power and means of production (tools, ...
from
capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
to
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
.


In the United States

Despite the long history of overlap between the two, with social democracy considered a form of democratic or parliamentary socialism and social democrats calling themselves democratic socialists, ''democratic socialism'' is considered a misnomer in the United States. One issue is that ''social democracy'' is equated with wealthy countries in the Western world, especially in Northern and Western Europe, while ''democratic socialism'' is conflated either with the
pink tide The pink tide (; ; ), or the turn to the left (; ; ), is a political wave and turn towards left-wing governments in Latin America throughout the 21st century. As a term, both phrases are used in political analysis in the news media and elsewhe ...
in Latin America, especially with Venezuela, or with communism in the form of Marxist–Leninist socialism as practised in the Soviet Union and other self-declared socialist states. ''Democratic socialism'' has been described as representing the "left-wing" or "socialist" tradition of the
New Deal The New Deal was a series of wide-reaching economic, social, and political reforms enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938, in response to the Great Depression in the United States, Great Depressi ...
. The lack of a strong and influential
socialist movement in the United States The history of the socialist movement in the United States spans a variety of tendencies, including Anarchism in the United States, anarchists, Communism in the United States, communists, democratic socialists, social democrats, Marxists, Marxis ...
has been linked to the
Red Scare A Red Scare is a form of moral panic provoked by fear of the rise of left-wing ideologies in a society, especially communism and socialism. Historically, red scares have led to mass political persecution, scapegoating, and the ousting of thos ...
, and any ideology associated with socialism brings social stigma due to its association with
authoritarian Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in democracy, separation of powers, civil liberties, and ...
socialist states List of socialist states may refer to: * List of non-communist socialist states, a list of states that has self-declared as socialist that are not also communist states * List of communist states A communist state is a form of government that comb ...
. ''Socialism'' has been used as a pejorative term by members of the
political right Right-wing politics is the range of political ideologies that view certain social orders and hierarchies as inevitable, natural, normal, or desirable, typically supporting this position based on natural law, economics, authority, property, ...
to stop the implementation of liberal and progressive policies and proposals and to criticize the public figures trying to implement them. Although Americans may reject the idea that the United States has characteristics of a European-style social democracy, it has been argued by some observers that it has a comfortable
social safety net A social safety net (SSN) consists of non-contributory assistance existing to improve lives of vulnerable families and individuals experiencing poverty and destitution. Examples of SSNs are previously-contributory social pensions, in-kind and foo ...
, albeit severely underfunded in comparison to other Western countries. It has also been argued that many policies that may be considered socialist are popular but that socialism is not. Others, such as
Tony Judt Tony Robert Judt ( ; 2 January 1948 – 6 August 2010) was an English historian, essayist and university professor who specialised in European history. Judt moved to New York and served as the Erich Maria Remarque Professor in European Studies ...
, described
modern liberalism in the United States Modern liberalism, often referred to simply as liberalism, is the dominant version of liberalism in the United States. It combines ideas of civil liberty and Social equality, equality with support for social justice and a mixed economy. Modern l ...
as representing European social democracy.


In South Africa

South Africa South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. Its Provinces of South Africa, nine provinces are bounded to the south by of coastline that stretches along the Atlantic O ...
has been governed by the
African National Congress The African National Congress (ANC) is a political party in South Africa. It originated as a liberation movement known for its opposition to apartheid and has governed the country since 1994, when the 1994 South African general election, fir ...
(ANC), a social democratic party, since 1994. In 2022, The World Economic Forum said that South Africa risks state collapse and identified five major risks facing the country. Former minister Jay Naidoo has said that South Africa is in serious trouble and is showing signs of a failed state, with record unemployment levels and the fact that many young people will not find a job in their lifetime.


Policy regime

Social democracy rests on three fundamental features, namely: "(1) parliamentary democracy, (2) an economy partly regulated by the state, and (3) provision of social support to those in need". In practice, social democratic parties have been instrumental in the social-liberal paradigm, lasting from the 1940s and 1970s, and called such because it was developed by
social liberals Social liberalism is a political philosophy and variety of liberalism that endorses social justice, social services, a mixed economy, and the expansion of civil and political rights, as opposed to classical liberalism which favors limited g ...
but implemented by social democrats. Since those policies were mostly implemented by social democrats, social liberalism is sometimes called ''social democracy''. In Britain, the social-liberal
Beveridge Report The Beveridge Report, officially entitled ''Social Insurance and Allied Services'' ( Cmd. 6404), is a government report, published in November 1942, influential in the founding of the welfare state in the United Kingdom. It was drafted by the Lib ...
drafted by the Liberal economist
William Beveridge William Henry Beveridge, 1st Baron Beveridge, (5 March 1879 – 16 March 1963) was a British economist and Liberal Party (UK), Liberal politician who was a Progressivism, progressive, social reformer, and eugenicist who played a central role ...
influenced the Labour Party's social policies, such as the
National Health Service The National Health Service (NHS) is the term for the publicly funded health care, publicly funded healthcare systems of the United Kingdom: the National Health Service (England), NHS Scotland, NHS Wales, and Health and Social Care (Northern ...
and Labour's welfare state development. This social-liberal paradigm represented the post-war consensus and was accepted across the political spectrum by conservatives, liberals and socialists until the 1970s. Similarly, the neoliberal paradigm, which replaced the previous paradigm, was accepted across the mainstream political parties, including social democratic supporters of the Third Way. This has caused much controversy within the social democratic movement.


Role of the state

From the late 19th century until the mid to late 20th century, there was greater public confidence in the idea of a state-managed economy that was a major pillar of communism, and to a substantial degree by
conservatives Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civilizati ...
and
left-liberal Social liberalism is a political philosophy and variety of liberalism that endorses social justice, social services, a mixed economy, and the expansion of civil and political rights, as opposed to classical liberalism which favors limited g ...
s. Aside from
anarchists Anarchism is a political philosophy and movement that seeks to abolish all institutions that perpetuate authority, coercion, or hierarchy, primarily targeting the state and capitalism. Anarchism advocates for the replacement of the state w ...
and other
libertarian socialists Libertarian socialism is an anti-authoritarian and anti-capitalist political current that emphasises self-governance and workers' self-management. It is contrasted from other forms of socialism by its rejection of state ownership and from other ...
, there was confidence amongst socialists in the concept of
state socialism State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition ...
as being the most effective form of socialism. Some early British social democrats in the 19th century and 20th century, such as the
Fabians The Fabian Society () is a British socialist organisation whose purpose is to advance the principles of social democracy and democratic socialism via gradualist and reformist effort in democracies, rather than by revolutionary overthrow. Th ...
, said that British society was already mostly socialist and that the economy was significantly socialist through government-run enterprises created by conservative and liberal governments which could be run for the interests of the people through their representatives' influence, an argument echoed by some socialists in post-war Britain. Advents in economics and observation of the failure of state socialism in the
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...
countries and the Western world with the crisis and stagflation of the 1970s, combined with the neoliberal rebuke of
state interventionism A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reason ...
, resulted in socialists re-evaluating and redesigning socialism. Some social democrats have sought to keep what they deem are socialism's core values while changing their position on state involvement in the economy and retaining significant social regulations. When
nationalization Nationalization (nationalisation in British English) is the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization contrasts with p ...
of large industries was relatively widespread in the 20th century until the 1970s, it was not uncommon for commentators to describe some European social democracies as democratic socialist states seeking to move their countries toward a
socialist economy Socialist economics comprises the economic theories, practices and norms of hypothetical and existing socialist economic systems. A socialist economic system is characterized by social ownership and operation of the means of production that m ...
. In 1956, leading Labour Party politician and British author
Anthony Crosland Charles Anthony Raven Crosland (29 August 191819 February 1977) was a British Labour Party (UK), Labour Party politician and author. A social democrat on the right wing of the Labour Party, he was a prominent socialist intellectual. His influe ...
said that capitalism had been abolished in Britain, although others such as Welshman
Aneurin Bevan Aneurin "Nye" Bevan Privy Council (United Kingdom), PC (; 15 November 1897 – 6 July 1960) was a Welsh Labour Party (UK), Labour Party politician, noted for spearheading the creation of the British National Health Service during his t ...
, Minister of Health in the first
post-war Labour government Clement Attlee was invited by King George VI to form the first Attlee ministry in the United Kingdom on 26 July 1945, succeeding Winston Churchill as prime minister of the United Kingdom. The Labour Party had won a landslide victory at the 19 ...
and the architect of the
National Health Service The National Health Service (NHS) is the term for the publicly funded health care, publicly funded healthcare systems of the United Kingdom: the National Health Service (England), NHS Scotland, NHS Wales, and Health and Social Care (Northern ...
, disputed the claim. For Crosland and others who supported his views, Britain was a socialist state. According to Bevan, Britain had a socialist
National Health Service The National Health Service (NHS) is the term for the publicly funded health care, publicly funded healthcare systems of the United Kingdom: the National Health Service (England), NHS Scotland, NHS Wales, and Health and Social Care (Northern ...
, which opposed the
hedonism Hedonism is a family of Philosophy, philosophical views that prioritize pleasure. Psychological hedonism is the theory that all human behavior is Motivation, motivated by the desire to maximize pleasure and minimize pain. As a form of Psycholo ...
of Britain's capitalist society. Although, as in the rest of Europe, the laws of capitalism still operated fully and
private enterprise A privately held company (or simply a private company) is a company whose Stock, shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the Private equi ...
dominated the economy, some political commentators stated that during the post-war period, when social democratic parties were in power, countries such as Britain and France were democratic socialist states. The same claim has been applied to Nordic countries with the Nordic model. In the 1980s, the government of President
François Mitterrand François Maurice Adrien Marie Mitterrand (26 October 19168 January 1996) was a French politician and statesman who served as President of France from 1981 to 1995, the longest holder of that position in the history of France. As a former First ...
aimed to expand
dirigism Dirigisme or dirigism () is an economic doctrine in which the state plays a strong directive (policies) role, contrary to a merely regulatory or non-interventionist role, over a market economy. As an economic doctrine, dirigisme is the opposite ...
and attempted to nationalize all French banks, but this attempt faced opposition from the
European Economic Community The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
because it demanded a free-market economy among its members.
Public ownership State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed t ...
never accounted for more than 15–20% of
capital formation Capital formation is a concept used in macroeconomics, national accounts and financial economics. Occasionally it is also used in corporate accounts. It can be defined in three ways: *It is a specific statistical concept, also known as net invest ...
, further dropping to 8% in the 1980s and below 5% in the 1990s after the rise of neoliberalism. The collapse of the legitimacy of state socialism and
Keynesian Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...
interventionism (with the discovery of the phenomenon of
stagflation Stagflation is the combination of high inflation, stagnant economic growth, and elevated unemployment. The term ''stagflation'', a portmanteau of "stagnation" and "inflation," was popularized, and probably coined, by British politician Iain Mac ...
) has been an issue for social democracy. This has provoked re-thinking of how socialism should be achieved by social democrats, including changing views by social democrats on private property—anti-Third Way social democrats such as Robert Corfe have advocated a socialist form of private property as part of new socialism (although Corfe technically objects to ''
private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...
'' as a term to collectively describe property that is not publicly owned as being vague) and rejecting state socialism as a failure. Third Way social democracy was formed in response to what its proponents saw as a crisis in the legitimacy of socialism—especially state socialism—and the rising legitimacy of neoliberalism, especially ''laissez-faire'' capitalism. The Third Way's view of the crisis is criticized for being too simplistic. Others have criticized it because with the fall of state socialism, it was possible for "a new kind of 'third way' socialism (combining social ownership with markets and democracy), thereby heralding a revitalization of the social democratic tradition"; however, it has been argued that the prospect of a new socialism was "a chimera, a hopeful invention of Western socialists who had not understood how ' actually existing socialism' had totally discredited ''any'' version of socialism among those who had lived under it".


Corporatism

Social democracy influenced the development of
social corporatism Social corporatism, also called social democratic corporatism, is a form of economic tripartite corporatism based upon a social partnership between the interests of capital and labour, involving collective bargaining between representatives of ...
, a form of economic tripartite corporatism based upon a social partnership between the interests of
capital Capital and its variations may refer to: Common uses * Capital city, a municipality of primary status ** Capital region, a metropolitan region containing the capital ** List of national capitals * Capital letter, an upper-case letter Econom ...
and labour, involving collective bargaining between representatives of employers and labour mediated by the government at the national level. During the
post-war consensus The post-war consensus, sometimes called the post-war compromise, was the economic order and social model of which the major political parties in post-war Britain shared a consensus supporting view, from the end of World War II in Europe in 1 ...
, this form of social democracy has been a major component of the
Nordic model The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level colle ...
and, to a lesser degree, the West European social market economies. The development of social corporatism began in Norway and
Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
in the 1930s and was consolidated in the 1960s and 1970s. The system was based upon the dual compromise of capital and labour as one component and the market and the state as the other. From the 1940s through the 1970s, defining features of social democracy as a policy regime included Keynesian economic policies and industrial agreements to balance the power of capital and labour and the welfare state. This is especially associated with the Swedish
Social Democrats Social democracy is a social, economic, and political philosophy within socialism that supports political and economic democracy and a gradualist, reformist, and democratic approach toward achieving social equality. In modern practice, s ...
. In the 1970s, social corporatism evolved into
neo-corporatism Corporatism is an ideology and political system of interest representation and policymaking whereby Corporate group (sociology), corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come toget ...
, which replaced it. Neo-corporatism has represented an important concept of
Third Way social democracy The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of right-wing economic and left-wing social policies. The Third Way is a reco ...
. Social democratic theorist Robin Archer wrote about the importance of social corporatism to social democracy in his work ''Economic Democracy: The Politics of a Feasible Socialism'' (1995). As a welfare state, social democracy is a specific type of welfare state and policy regime described as being universalist, supportive of collective bargaining, and more supportive of public provision of welfare. It is especially associated with the Nordic model.


Analysis


Legacy

Social democratic policies were first adopted in the
German Empire The German Empire (),; ; World Book, Inc. ''The World Book dictionary, Volume 1''. World Book, Inc., 2003. p. 572. States that Deutsches Reich translates as "German Realm" and was a former official name of Germany. also referred to as Imperia ...
between the 1880s and 1890s, when the
conservative Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
Chancellor
Otto von Bismarck Otto, Prince of Bismarck, Count of Bismarck-Schönhausen, Duke of Lauenburg (; born ''Otto Eduard Leopold von Bismarck''; 1 April 1815 – 30 July 1898) was a German statesman and diplomat who oversaw the unification of Germany and served as ...
put in place many
social welfare Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance p ...
proposals initially suggested by the
Social Democrats Social democracy is a social, economic, and political philosophy within socialism that supports political and economic democracy and a gradualist, reformist, and democratic approach toward achieving social equality. In modern practice, s ...
to hinder their electoral success after he instituted the
Anti-Socialist Laws The Anti-Socialist Laws or Socialist Laws (; officially , approximately "Law against the public danger of Social Democratic endeavours") were a series of acts of the parliament of the German Empire, the first of which was passed on 19 October 187 ...
, laying the ground of the first modern
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
. Those policies were dubbed
State Socialism State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition ...
by the liberal opposition, but Bismarck later accepted and re-appropriated the term. It was a set of social programs implemented in Germany that Bismarck initiated in 1883 as remedial measures to appease the
working class The working class is a subset of employees who are compensated with wage or salary-based contracts, whose exact membership varies from definition to definition. Members of the working class rely primarily upon earnings from wage labour. Most c ...
and reduce support for
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
and the Social Democrats following earlier attempts to achieve the same objective through Bismarck's Anti-Socialist Laws. This did not prevent the Social Democrats from becoming the biggest party in parliament by 1912. Similar policies were later adopted in most of Western Europe, including France and the United Kingdom (the latter in the form of the
Liberal welfare reforms The Liberal welfare reforms (1906–1914) were a series of acts of social legislation passed by the Liberal Party after the 1906 general election. They represent the Liberal Party's transition rejecting the old laissez faire policies and enactin ...
), with both socialist and liberal parties adopting those policies. In the United States, the
progressive movement Progressivism is a left-leaning political philosophy and reform movement that seeks to advance the human condition through social reform. Adherents hold that progressivism has universal application and endeavor to spread this idea to huma ...
, a similar social democratic movement predominantly influenced more by
social liberalism Social liberalism is a political philosophy and variety of liberalism that endorses social justice, social services, a mixed economy, and the expansion of civil and political rights, as opposed to classical liberalism which favors limited g ...
than
socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
, supported progressive liberals such as Democratic presidents
Woodrow Wilson Thomas Woodrow Wilson (December 28, 1856February 3, 1924) was the 28th president of the United States, serving from 1913 to 1921. He was the only History of the Democratic Party (United States), Democrat to serve as president during the Prog ...
and
Franklin D. Roosevelt Franklin Delano Roosevelt (January 30, 1882April 12, 1945), also known as FDR, was the 32nd president of the United States, serving from 1933 until his death in 1945. He is the longest-serving U.S. president, and the only one to have served ...
, whose New Freedom and
New Deal The New Deal was a series of wide-reaching economic, social, and political reforms enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938, in response to the Great Depression in the United States, Great Depressi ...
programmes adopted many social democratic policies. With the
Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
,
economic interventionism A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reas ...
and
nationalizations Nationalization (nationalisation in British English) is the process of transforming privately owned assets into public assets by bringing them under the State ownership, public ownership of a Government, national government or State (polity) ...
became more common worldwide and the
post-war consensus The post-war consensus, sometimes called the post-war compromise, was the economic order and social model of which the major political parties in post-war Britain shared a consensus supporting view, from the end of World War II in Europe in 1 ...
until the 1970s saw
Keynesian Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...
social democratic and
mixed economy A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...
policies put in place, leading to the post-World War II boom in which the United States, the Soviet Union, the Western European, and East Asian countries experienced unusually high and sustained
economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...
, together with
full employment Full employment is an economic situation in which there is no cyclical or deficient-demand unemployment. Full employment does not entail the disappearance of all unemployment, as other kinds of unemployment, namely structural and frictional, may ...
. Contrary to early predictions, this period of high economic growth and national development also included many countries that were devastated by the war, such as Japan (
Japanese post-war economic miracle The Japanese economic miracle () refers to a period of economic growth in the post–World War II Japan. It generally refers to the period from 1955, around which time the per capita gross national income of the country recovered to pre-war leve ...
), West Germany and Austria (
Wirtschaftswunder The ''Wirtschaftswunder'' (, "economic miracle"), also known as the Miracle on the Rhine, was the rapid reconstruction and development of the Economy, economies of West Germany and Austria after World War II. The expression was first used to re ...
), South Korea ( Miracle of the Han River), France (
Trente Glorieuses ''Les Trente Glorieuses'' (; 'The Thirty Glorious (Years)') was a thirty-year period of economic growth in France between 1945 and 1975, following the end of the Second World War. The name was first used by the French demographer Jean Fourast ...
), Italy (
Italian economic miracle The Italian economic miracle or Italian economic boom ( or ''il boom economico italiano'') is the term used by historians, economists, and the mass media to designate the prolonged period of strong economic growth in Italy after World War II to th ...
), and Greece (
Greek economic miracle The Greek economic miracle (Greek: Ελληνικό οικονομικό θαύμα) describes a period of rapid and sustained economic growth in Greece from 1950 to 1973. At its height, the Greek economy grew by an average of 7.7 percent, seco ...
). With the
1970s energy crisis The 1970s energy crisis occurred when the Western world, particularly the United States, Canada, Western Europe, Australia, and New Zealand, faced substantial petroleum shortages as well as elevated prices. The two worst crises of this period wer ...
, the abandonment of both the
gold standard A gold standard is a backed currency, monetary system in which the standard economics, economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the ...
and the
Bretton Woods system The Bretton Woods system of monetary management established the rules for commercial relations among 44 countries, including the United States, Canada, Western European countries, and Australia, after the 1944 Bretton Woods Agreement until the ...
along with Keynesian social democratic, mixed-economy policies and the implementation of market-oriented,
monetarist Monetarism is a school of thought in monetary economics that emphasizes the role of policy-makers in controlling the amount of money in circulation. It gained prominence in the 1970s, but was mostly abandoned as a direct guidance to monetary ...
, and
neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...
policies (
privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...
,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
,
free trade Free trade is a trade policy that does not restrict imports or exports. In government, free trade is predominantly advocated by political parties that hold Economic liberalism, economically liberal positions, while economic nationalist politica ...
,
economic globalization Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two others being political globalization and cultural globalization, as well as the general term of globalization. Econ ...
, and anti-
inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
ary
fiscal policy In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...
, among others), the social democratic welfare state was put in doubt. This caused several social democratic parties to adopt the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
, a centrist ideology combining social democracy with neoliberalism; however, the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
in the late 2000s and early 2010s cast doubts on the
Washington Consensus The Washington Consensus is a set of ten economic policy prescriptions considered in the 1980s and 1990s to constitute the "standard" reform package promoted for Economic crisis, crisis-wracked developing country, developing countries by the Was ...
, and
protests A protest (also called a demonstration, remonstration, or remonstrance) is a public act of objection, disapproval or dissent against political advantage. Protests can be thought of as acts of cooperation in which numerous people cooperate ...
against
austerity measures In economic policy, austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: high ...
ensued. There was a resurgence of social democratic parties and policies, especially in the United States and the United Kingdom, with the rise of politicians such as
Bernie Sanders Bernard Sanders (born September8, 1941) is an American politician and activist who is the Seniority in the United States Senate, senior United States Senate, United States senator from the state of Vermont. He is the longest-serving independ ...
and
Jeremy Corbyn Jeremy Bernard Corbyn (; born 26 May 1949) is a British politician who has been Member of Parliament (United Kingdom), Member of Parliament (MP) for Islington North (UK Parliament constituency), Islington North since 1983. Now an Independent ...
, who rejected the Third Way, after the
economic recession An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
caused the
Pasokification Pasokification is the decline of centre-left, social-democratic political parties in European and other Western countries during the 2010s, often accompanied by the rise of nationalist, left-wing and right-wing populist alternatives. In Europe, ...
of many social democratic parties. The United Nations
World Happiness Report The World Happiness Report is a publication that contains articles and rankings of national happiness, based on respondent ratings of their own lives, which the report also correlates with various (quality of) life factors. Since 2024, the r ...
shows that the happiest nations are concentrated in social democratic nations, especially in Northern Europe, where the
Nordic model The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level colle ...
is applied. This is at times attributed to the success of the social democratic Nordic model in the region, where similar
democratic socialist Democratic socialism is a left-wing economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self-mana ...
, labourist, and social democratic parties dominated the region's political scene and laid the ground for their universal welfare states in the 20th century. The Nordic countries, including Denmark, Finland, Iceland, Norway, and Sweden, as well as Greenland and the Faroe Islands, also ranks highest on the metrics of real
GDP per capita This is a list of countries by nominal GDP per capita. GDP per capita is the total value of a country's finished goods and services (gross domestic product) divided by its total population (per capita). Gross domestic product (GDP) per capita is ...
, economic equality,
public health Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals". Analyzing the de ...
,
life expectancy Human life expectancy is a statistical measure of the estimate of the average remaining years of life at a given age. The most commonly used measure is ''life expectancy at birth'' (LEB, or in demographic notation ''e''0, where '' ...
,
solidarity Solidarity or solidarism is an awareness of shared interests, objectives, standards, and sympathies creating a psychological sense of unity of groups or classes. True solidarity means moving beyond individual identities and single issue politics ...
, perceived freedom to make life choices,
generosity Generosity (also called largesse) is the virtue of being liberal in charity (practice), giving, often as gifts. Generosity is regarded as a virtue by various world religions and List of philosophies, philosophies and is often celebrated in cultur ...
,
quality of life Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
, and
human development Human development may refer to: * Development of the human body ** This includes physical developments such as growth, and also development of the brain * Developmental psychology * Development theory * Human development (economics) * Human Develo ...
, while countries practising a neoliberal form of government have registered relatively poorer results. Similarly, several reports have listed Scandinavian and other social democratic countries as ranking high on indicators such as
civil liberties Civil liberties are guarantees and freedoms that governments commit not to abridge, either by constitution, legislation, or judicial interpretation, without due process. Though the scope of the term differs between countries, civil liberties of ...
,
democracy Democracy (from , ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which political power is vested in the people or the population of a state. Under a minimalist definition of democracy, rulers are elected through competitiv ...
,
press Press may refer to: Media * Publisher * News media * Printing press, commonly called "the press" * Press TV, an Iranian television network Newspapers United States * ''The Press'', a former name of ''The Press-Enterprise'', Riverside, California ...
, labour and
economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
freedoms,
peace Peace is a state of harmony in the absence of hostility and violence, and everything that discusses achieving human welfare through justice and peaceful conditions. In a societal sense, peace is commonly used to mean a lack of conflict (suc ...
, and freedom from
corruption Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities ...
. Numerous studies and surveys indicate that people live happier lives in countries ruled by social democratic parties than those ruled by neoliberal, centrist, and right-wing governments.


Criticism

Other socialists criticize social democracy because it serves to devise new means to strengthen the capitalist system, which conflicts with the socialist goal of replacing capitalism with a socialist system. According to this view, social democracy fails to address the systemic issues inherent in capitalism. The American democratic socialist philosopher
David Schweickart David Schweickart (born 1942) is an American mathematician and philosopher. He holds a BS in Mathematics from the University of Dayton, a PhD in Mathematics from the University of Virginia, and a PhD in Philosophy from Ohio State University. ...
contrasts social democracy with
democratic socialism Democratic socialism is a left-wing economic ideology, economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and wor ...
by defining the former as an attempt to strengthen the
welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...
and the latter as an alternative economic system to capitalism. According to Schweickart, the democratic socialist critique of social democracy is that capitalism can never be sufficiently humanized and that any attempt to suppress its economic contradictions will only cause them to emerge elsewhere. He gives the example that attempts to reduce unemployment too much would result in inflation, and too much job security would erode labour discipline. In contrast to social democracy's
mixed economy A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...
, democratic socialists advocate a post-capitalist economic system based on either a
market economy A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a mark ...
combined with
workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-managed economy, ...
or on some form of
participatory Citizen participation or public participation in social science refers to different mechanisms for the public to express opinions—and ideally exert influence—regarding political, economic, management or other social decisions. Participato ...
,
decentralized planning A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, pa ...
of the economy. Marxian socialists argue that social democratic welfare policies cannot resolve the fundamental structural issues of capitalism, such as cyclical fluctuations, exploitation, and alienation. Accordingly, social democratic programs intended to ameliorate living conditions in capitalism, such as unemployment benefits and taxation on profits, creates further contradictions by further limiting the efficiency of the capitalist system by reducing incentives for capitalists to invest in further production. The welfare state only serves to legitimize and prolong the exploitative and contradiction-laden system of capitalism to society's detriment. Critics of contemporary social democracy, such as Jonas Hinnfors, argue that when social democracy abandoned
Marxism Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, ...
, it also abandoned socialism and became a liberal capitalist movement, effectively making social democrats similar to non-socialist parties like the Democratic Party in the United States.
Market socialism Market socialism is a type of economic system involving social ownership of the means of production within the framework of a market economy. Various models for such a system exist, usually involving cooperative enterprises and sometimes a mix ...
is also critical of social democratic welfare states. While one common goal of both concepts is to achieve greater social and economic equality, market socialism does so through changes in enterprise ownership and management. Social democracy attempts to do so by subsidies and taxes on privately owned enterprises to finance welfare programs. Franklin Delano Roosevelt III (grandson of United States President
Franklin D. Roosevelt Franklin Delano Roosevelt (January 30, 1882April 12, 1945), also known as FDR, was the 32nd president of the United States, serving from 1933 until his death in 1945. He is the longest-serving U.S. president, and the only one to have served ...
) and David Belkin criticize social democracy for maintaining a property-owning capitalist class with an active interest in reversing social democratic welfare policies and a disproportionate amount of power as a class to influence government policy. The economists
John Roemer John E. Roemer (; born February 1, 1945) is an American economist and political scientist. He is the Elizabeth S. and A. Varick Stout Professor of Political Science and Economics at Yale University. Before Yale, he was on the economics faculty a ...
and
Pranab Bardhan Pranab Bardhan (born 11 September 1939) is an Indian economist who has taught and worked in the United States since 1979. He is Professor Emeritus of Economics at the University of California, Berkeley. Biography Bardhan received his bachelor ...
point out that social democracy requires a strong
labour movement The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considere ...
to sustain its heavy redistribution through taxes and that it is idealistic to think such redistribution can be accomplished in other countries with weaker labour movements, noting that social democracy in Scandinavian countries has been in decline as the labour movement weakened. Some critics say social democracy abandoned socialism in the 1930s by endorsing Keynesian
welfare capitalism Welfare capitalism is capitalism that includes social welfare policies and/or the practice of businesses providing welfare services to their employees. Welfare capitalism in this second sense, or industrial paternalism, was centered on indust ...
. The democratic socialist political theorist
Michael Harrington Edward Michael Harrington Jr. (February 24, 1928 – July 31, 1989) was an American democratic socialist. As a writer, he was best known as the author of '' The Other America'' (1962). Harrington was also a political activist, theorist, profess ...
argued that social democracy historically supported
Keynesianism Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongl ...
as part of a "social democratic compromise" between capitalism and socialism. Although this compromise did not allow for the immediate creation of socialism, it created welfare states and "recognized noncapitalist, and even anticapitalist, principles of human need over and above the imperatives of profit". Social democrats in favour of the
Third Way The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
have been accused of endorsing capitalism, including anti-Third Way social democrats who have accused Third Way proponents such as
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is ...
of being anti-social democratic and anti-socialist in practice. Some critics and analysts argue that many prominent social democratic parties, such as the Labour Party in Britain and the
Social Democratic Party of Germany The Social Democratic Party of Germany ( , SPD ) is a social democratic political party in Germany. It is one of the major parties of contemporary Germany. Saskia Esken has been the party's leader since the 2019 leadership election together w ...
, even while maintaining references to socialism and declaring themselves democratic socialist parties, have abandoned socialism in practice, whether unwillingly or not. Social democracy's reformism has been criticized by both the left and right, on the grounds that if reformist socialists were left to govern a capitalist economy, they would have to do so according to capitalist, not socialist, logic. For example,
Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian political economist. He served briefly as Finance Minister of Austria in 1919. In 1932, he emigrated to the United States to become a professor at Harvard Unive ...
writes in ''
Capitalism, Socialism and Democracy ''Capitalism, Socialism, and Democracy'' is a book on economics, sociology, and history by Joseph Schumpeter, arguably his most famous, controversial, and important work. It is also one of the most famous, controversial, and important books on ...
'' (1942): "Socialists had to govern in an essentially capitalist world... a social and economic system that would not function except on capitalist lines.... If they were to run it, they would have to run it according to its own logic. They would have to 'administer' capitalism". Similarly,
Irving Kristol Irving William Kristol (; January 22, 1920 – September 18, 2009) was an American journalist and writer. As a founder, editor, and contributor to various magazines, he played an influential role in the intellectual and political culture of the la ...
argued: "Democratic socialism turns out to be an inherently unstable compound, a contradiction in terms. Every social democratic party, once in power, soon finds itself choosing, at one point after another, between the socialist society it aspires to and the liberal society that lathered it".
Joseph Stalin Joseph Vissarionovich Stalin (born Dzhugashvili; 5 March 1953) was a Soviet politician and revolutionary who led the Soviet Union from 1924 until Death and state funeral of Joseph Stalin, his death in 1953. He held power as General Secret ...
was a vocal critic of reformist social democrats, later coining the term ''
social fascism Social fascism was a theory developed by the Communist International (Comintern) in the early 1930s which saw social democracy as a moderate variant of fascism. The Comintern argued that capitalism had entered a Third Period in which proletaria ...
'' to describe social democracy in the 1930s because, in this period, it embraced a similar
corporatist Corporatism is an ideology and political system of interest representation and policymaking whereby corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come together and negotiate contracts ...
economic model to the model supported by
fascism Fascism ( ) is a far-right, authoritarian, and ultranationalist political ideology and movement. It is characterized by a dictatorial leader, centralized autocracy, militarism, forcible suppression of opposition, belief in a natural social hie ...
. This view was adopted by the
Communist International The Communist International, abbreviated as Comintern and also known as the Third International, was a political international which existed from 1919 to 1943 and advocated world communism. Emerging from the collapse of the Second Internationa ...
, which argued that capitalist society had entered the
Third Period The Third Period is an ideological concept adopted by the Communist International (Comintern) at its Sixth World Congress, held in Moscow in the summer of 1928. It set policy until reversed when the Nazis took over Germany in 1933. The Cominte ...
in which a
proletarian revolution A proletarian revolution or proletariat revolution is a social revolution in which the working class attempts to overthrow the bourgeoisie and change the previous political system. Proletarian revolutions are generally advocated by socialist ...
was imminent but could be prevented by social democrats and other fascist forces.


See also

*
Pasokification Pasokification is the decline of centre-left, social-democratic political parties in European and other Western countries during the 2010s, often accompanied by the rise of nationalist, left-wing and right-wing populist alternatives. In Europe, ...
*
Economic progressivism Economic progressivism or fiscal progressivism is a political and economic philosophy incorporating the socioeconomic principles of social democrats and political progressives. These views are often rooted in the concept of social justice and h ...
* History of the Social Democratic Party of Austria *
History of the Social Democratic Party of Germany The foundation of the Social Democratic Party of Germany (, SPD) can be traced back to the 1860s, and it has represented the centre-left in German politics for much of the 20th and 21st centuries. From 1891 to 1959, the SPD theoretically espouse ...
* International Group of Democratic Socialists * List of anti-capitalist and communist parties with national parliamentary representation *
List of social democratic and democratic socialist parties that have governed This is a list of social democratic and democratic socialist parties which have governed countries, whether as the ruling party or as a member of a governing coalition. Most of these parties were members of the Socialist International. Political ...
*
List of democratic socialist parties and organizations This is a list of parties in the world that consider themselves to be upholding the principles and values of democratic socialism or include significant numbers of democratic socialist members (although many do not specifically include the term " ...
* List of democratic socialists * List of Labour parties * List of left-wing political parties *
List of social democratic parties This is a list of parties in the world that consider themselves to be upholding the principles and values of social democracy. Some of the parties are also members of the Socialist International, Party of European Socialists or the Progressive A ...
* List of social democrats *
Social Democratic Party The name Social Democratic Party or Social Democrats has been used by many political parties in various countries around the world. Such parties are most commonly aligned to social democracy as their political ideology. Active parties Form ...
*
Socialist Party Socialist Party is the name of many different political parties around the world. All of these parties claim to uphold some form of socialism, though they may have very different interpretations of what "socialism" means. Statistically, most of th ...
* Socialist Union of Central-Eastern Europe *
Three Arrows The Three Arrows () is a political symbol associated with the Social Democratic Party of Germany (SPD), used in the late history of the Weimar Republic. First conceived for the SPD-dominated Iron Front as a symbol of the social democratic resi ...


References


Citations


Notes


Sources


Books

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Conferences

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Encyclopedias

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Journals

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News

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Speeches

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Websites

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Further reading

* * * Häusermann, Silja; Kitschelt, Herbert, eds. (2024). ''Beyond Social Democracy: The Transformation of the Left in Emerging Knowledge Societies''. Cambridge University Press. * * *


External links

* {{Authority control Anti-Stalinist left Anti-capitalism Anti-fascism Centre-left ideologies Centre-left politics Democracy Democratic socialism Economic ideologies Economic progressivism History of socialism Left-wing ideologies Liberal socialism Market socialism Mixed economies Political ideologies Political philosophy Political-economic models Progressivism Social justice
Democracy Democracy (from , ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which political power is vested in the people or the population of a state. Under a minimalist definition of democracy, rulers are elected through competitiv ...
Socialism Syncretic political movements Types of democracy Types of socialism Welfare economics