Introduction
Socialism Essay Plans Most socialists call for some form of state intervention or planning in the economy, but they maintain that the profit-driven free market cannot allocate
wealth and resources fairly. Marxists and state socialists advocate replacing capitalism with a centrally planned economy based on common ownership of
the means of production. In contrast, social democrats accept a degree of free-market capitalism, and favour a mixed economy of nationalised industeries
The economy and privately owned enterprises. Neo-revisionists readily accept the primacy of the free market in the economy since and reject state intervention in the
economy altogether.
Agreements over the economy
Point: Collectivism is endorsed by all socialists and reflects the view that it is more important to pursue Point: Both social democrats and the Third Way are supportive of equality of opportunity within society.
the interests of a society or community than individual self-interest, and is shown in different forms by
the different strands. Evidence: Equality of opportunity is based on the principle that everyone should have an equal chamce
to make the best of their abilities. There should be a level playinig field with no artificial barriers to
Evidence: Collectivism utilises the capabilities of the whole society efficiently, avoiding wastefullness progress for those with ability, talent and a positive attitude to hard work.
and limited impact of competitive individual effort inherent in the capatilist economy. For Marxists and
state socialists this is achieved through a centralised state that organises (nearly) all production and Development: Anthony Crosland, a post-war revisionist (social democrat), argued that the main aim of
distribution. For example, in the USSR after 1929, most industries were nationalised and agricultural socialism was to manage capitalism to deliver greater social equality and social justice, with more
land was collectivised in order to transform a backward state into a modern industrial society. egalitarian distribution of rewards, status and privileges, and no class barriers. He believed that equality
of opportunity would be achieved through a Keynesian demand-management of a mixed economy and
Development: Furthermore, moderate socialists have also pursued collectivism, but in a more limited the nationalisation of some industries, along with government spending on welfare services and the
way. For example, the 1945-51 Labour government in the UK nationalised key industries, such as coal, redistribution of income and wealth. Similarly, Anthony Giddens, the most important figure in the
electricity, and iron and steel, but left much of the economy in private hands. development of the third way, supports equality of opportunity. He stressed that in order for a
market-driven system (that the third way endorsed) to be fair, everyone needed equality of opportunity.
He called for government action to control the widening inequalities of outcome.
Disagreements over the economy
Point: Revolutionary socialist thinkers, such as Marx and Engels and Rosa Luxemburg argue that Point: Socialism disagrees over the role of the state in organising a socialist economy.
capitalism and the free market are incompatible with socialism's core principles, so revolutionary
socialists reject the ideas of social democracy and the Third Way as being futile. Evidence: Democratic socialists, such as Beatrice Webb, argued for the expansion of the state. Webb
emphasised that the state's ability to deliver socialism would depend on highly trained specialists and
Evidence: Socialism through revolution is based on the conviction that the state is an instruement of administrators to orgainse society and the economy. Over time, municipal and state intervention would
class oppression, definding capitalists interests againsst those of the working classes. Therefore, any increase as more areas of life would need to be regulated and planned. The role of the disciplined elite
attempts to humanise capitalism would completely undermine the principles and objectives of socialism would be to run the state to 'guide the mass of citizens to a Socialist State'.
as it is based on inequality and exploitation. Rosa Luxemburg in Social Reform or Revolution (1899)
argued that any evolutionary or revisionist strategy would leave the capitalist system of economic Development: This differs to revolutionary socialists Marx and Engels. Marxists argue that the state
exploitation intact. Revolutionaries believe that capitalism cannot be reformed, so the existing society should not be a permament body. Marx beleived that a revolution by the proletariat would transform the
has to be completed transformed. current state into one with socialists institutions, a communist society, and the abolishment of private
property, the state apparatus and a differnece between manual and physical labour. After that the state
Development: On the other hand, social democrats and third way socialists accept free-market will only wither away once the workers' gains have been consolidated and social class differences are
capitalism to varying degrees, which is totally rejected by revolutionaries. Social democrats accept a replaced by a classless, equal society.
certain degree of free-market capitalism. They favour a mixed economy of nationalised key industries
and privately-owned enterprises. Neo-revisionists take this further by readily accepting the primacy of
the free market in the economy as they see it as the most efficient system of production.