What is the Difference Between Socialism And Communism? Know 3 Key Dissimilarities

There are four major economic systems that are widely used in the world today- Capitalism, Socialism, Communism, and Mixed. These economic systems have clear-cut definitions and ideologies. However, more often than not people get confused about two economic systems in particular, socialism and communism. Despite having stark differences, the two are often used interchangeably. This is why we are here, to clear up your confusion.

Also Read | What is the Difference Between Race And Ethnicity? Know 3 Key Dissimilarities

In this article, we will learn about the differences between socialism vs communism. 

What is the meaning of socialism?

Socialism is one of the four major economic systems. Merriam-Webster defines socialism as “any of various egalitarian economic and political theories or movements advocating collective or governmental ownership and administration of the means of production and distribution of goods.” 

In simple terms, socialism is a political and economic theory characterised by social ownership of the production and distribution of goods and services. 

In an ideal socialist economy, the production and distribution rights of goods and services are owned by the government. The government also provides essential services, such as healthcare, education, and transportation. 

For example, China and North Korea are socialist economies. 

You May Also Like | What Is The Difference Between Yogurt And Curd?

What is the meaning of communism?

Merriam-Webster defines communism as “a system in which goods are owned in common and are available to all as needed.”

In simple terms, communism can be explained as a political and economic system where the production and distribution of goods, products and services is wholly owned by the community. 

Communism is based on the ideas of Karl Marx and Friedrich Engels, who believed that true equality can only be achieved in a communist economy.  Theoretically, communism may seem like the ideal economic system, however, in reality, a communist state has never been successful. 

For example, the Soviet Union was a communist economy. 

Here's an interesting read for you:  Supper and Dinner have different meanings. What exactly do they mean?

Socialism vs Communism: What are the differences?

Both socialism and communism completely reject capitalism and focus on empowering the community as a whole. Now, that we have cleared up the definitions of socialism and communism, let’s learn the differences between them:

• Socialism is defined by social ownership of the means of production and trade, as well as the creation of commodities and services for consumption. In contrast, Communism aims for the creation of a classless society in which all members of the community own and control the means of production.
• In socialism, the means of production like factories, farms, and mines, are owned by the democratically-elected government. In communism, the means of production are owned and controlled wholly by the community. While people may own private properties in a socialist economy, it is non-existent in a communist economy. 
• Income is divided more equitably under socialism than in communism since the government takes a higher portion of revenues and uses them to fund social programmes like healthcare and education. Income is divided more equitably under communism because of the fact that everyone is equal, with no differentiation between the affluent and the poor.

We hope that this article was able to explain the differences between socialism and communism.

Read | What Is The Difference Between Lime And Lemon?