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2 An economic system
As in the realm of ideology, there is no single consensus on what it means for a particular economic system to be "socialist". However, all socialists agree that a socialist economy must be run for the benefit of the vast majority of the people rather than for a small aristocratic, plutocratic, or capitalist class. In the mid-nineteenth century, when socialism first arose, many political ideologies of the day were frank in supporting the interests of elite classes. Today, in a world where many countries offer a broader electoral franchise, such open support for the wealthy would be the equivalent of political suicide. Therefore, most ideologies claim to support the greatest good for the greatest number, something that was once advocated only by socialists. Still, even today, socialism stands out by being particularly forthright in advocating direct pursuit of working class interests, even at the expense of what other ideologies consider the legitimate property rights of the wealthy classes.
Most socialists argue that socialism also entails democratic control of the economy, although they differ vastly over the appropriate institutions of that democracy and over whether control should be centralized or highly dispersed. Similarly, they differ over the extent to which a socialist economy could involve markets, and among those who believe that it could, there is a further dividing line on whether markets should apply only to consumer goods or, in some cases, to the means of production themselves (factory and farm equipment, for example). For consumer goods, this is simply a question of efficient distribution; for the means of production, this is a question of ownership of the economy, and therefore of control over it.
Many non-socialists use the expression "socialist economy" (or "socialization" of a sector of the economy) almost exclusively to refer to centralized control under government aegis: for example, consider the use of the term " socialized medicine" in the US by opponents of single-payer health care.
There is general agreement among socialists and non-socialists that a socialist economy would not include private or estate ownership of large enterprises; there is less agreement on whether any such enterprises would be owned by society at large or (at least in some cases) owned cooperatively by their own workers. Among the few self-described socialists who dispute these principles are the leadership of the Communist Party of China, who claim to remain socialist, even while the continuing Chinese economic reform explicitly includes the concept of privately-owned large enterprises competing on an equal basis with publicly-owned ones. The adoption by China of this essential characteristic of capitalism is a principal reason why, outside of mainland China, few people (socialists or otherwise) consider present-day mainland China and its ruling party to be, in any meaningful sense, socialist.
It has been claimed, both by socialists and non-socialists, that the former Soviet Union and the Eastern Bloc had socialist economies, as the means of production were owned almost entirely by the state and the bulk of the economy was centrally controlled by the Communist Party acting through the state. However, many other socialists object to that label, because the people in those countries had little or no control over the government, and therefore they had little or no control over the economy. The aforementioned socialists argue that these societies were essentially oligarchies; some would call them state-capitalist, Stalinist, or as some Trotskyists would say, " degenerated workers states". Trotskyists contend that Stalinist economies fulfilled one criterion of a socialist economy, in that the economy was controlled by the state, but not the other criterion, that the state must be in turn democratically controlled by the workers. Many non-Marxist socialists would agree with the general outline of this argument, while perhaps dissenting from the statement that state control of the economy is one of the criteria of socialism. Further, many socialists would argue that the Soviet Union and its satellite states merely replaced a capitalist ruling class with a new ruling class, the coordinator class or nomenklatura, who played an extremely analogous role to the former capitalists, by managing the economy for their own benefit, or at least attempting to do so.
During the Cold War, a common term used by the Soviet Union and its allies to refer to their own economies was "actually existing socialism" (presumably as against any number of theoretically possible socialisms, but carrying an implicit statement that their economy was, in fact, socialist). Another similarly used term was (and is) " real socialist ." Typically, when these terms were or are used by anyone outside of the particular parties that ruled these countries (or the parties who supported them in other countries), they are placed in scare quotes and are used with at least mild irony.
