SOCIALISM (from social, from Lat. socialis, relating to companionship, or association, from sodas, companion, associate, from scqui, to fol low; connected with Lith. sekti, Gk. Vrco-Oat, hepesthat, SM. sac, to follow, and ultimately with Eng. see). As the term is now used, social ism is an ideal economic system in which indus try is carried on under social direction and for the benefit of society as a whole. It is contrasted with the competitive regime of existing society. The word socialism has been used to convey a variety of meanings, and is only gradually assum ing a definite significance, as a resnit of the care In' analysis of generations of socialistic think ers and their critics. 'Moreover, the ideal or ganization of socialism has to a great extent been influenced by actual industrial changes.
An earlier term by which socialism was known is communism (q.v.). Efforts to distinguish communism from socialism cannot be said to have been successful. Sometimes communism is used to refer to the voluntary organization of small bodies of men who have common property, and who carry on production in common, sharing among themselves the fruits of their toil, as a rule, in such a way as to give each one an equal allotment of economic goods, but not of honors and consideration.
In this sense communism may be distinguished from socialism in that the latter implies a thor oughgoing reconstruction of society through po litical action, while the former calls upon men to separate themselves from general society, and to form communal societies for themselves.
Socialism is sometimes called collectivism. Those who employ this term feel that their schemes of social reform are more likely to secure a hearing if called by some other name than socialism. For a time in the United States the term nationalism, introduced by Edward Bellamy in his book Looking Backward, was synonymous with socialism.
The origin of the word socialism has been the subject of much discussion. It has been claimed that it was first used in 1840 by a French writer, Louis Reyband, in his Etudes sur les Hforma tears contemporains ou socialistes modernes. The word, however, was used in the early thir ties in England, and the publications of the fol lowers of Robert Owen show that it had become current before 1840. John Spargo in the Com rade of March, 1903, traces the word socialism back to 1833.
In addition to the terms socialist and social ism, we have the terms social democrat and social democracy very commonly used as synonymous. It was long supposed that these words were of German origin, but at least as far back as 1838 they were coined by Bronterre O'Brien, an early socialist., who took part in the Chartist agu.a
tion. The words were used by O'Brien in oppo sition to any aristocratic socialist schemes and in advocacy of democratic socialism.
The constituent elements of socialism and its most essential characteristic must next be exam ined. The lack of scientific accuracy in popular writings concerning socialism shows that this complex concept is not generally understood, al though its fornmlation has become clear and pre cise enough. so that it should not be difficult to grasp its essential elements. Socialism implies, in the first place, a changed attitude towards property. Our economic life is dominated at the present time by private property, and in all cases, even where public property is largest in amount. it appears as an exception to a general rule. The world's work is carried on under the dominatia of private property. Socialism means that this process is to be reversed and that the world's work will ultimately be dominated by public property.
Accumulated wealth is divided by modern econ omists and socialists alike into productive goods and enjoyment goods. Productive goods, as the term suggests. signifies those kinds of wealth which are not used for immediate enjoyment, hut which are used. in producing those things which are consumed and enjoyed. Enjoyment good; are those which yield immediate satisfaction, such as ordinary articles of consumption, dwelling houses, paintings, and books. We have also a further distinction between accumulated wealth and income wealth, the annual product of toil, which may be used up each year. Now, as un derstood to-day, socialism means that the instru ments of production shall in the main be public or collective property. While the most conserva tive socialists do not insist upon public owner ship of all land and capital, they consider it es sential that the chief kinds of capital and the greater part of the land should be collective prop erty. Socialists formerly held that all land should be owned by society, but lately the most conservative socialists have been inclined to make concessions to small landowners who cultivate their property and to concede to them private ownership so long as they find it desirable. On the other hand, modern socialism has em phasized strongly private property in income. it is on this account that socialists frequently deny most strenuously that they are opposed to pri vate property, and claim that they wish to ex tend private property. They refer always to in come. They wish each one to have his income, and to have that under his control.