Quote:
Originally Posted by biguc
Scandinavian countries are capitalist. IKEA is not a product of socialism.
|
Quote:
Originally Posted by Boris2k7
Correct. Democratic Socialism (Venezuela, Peru) =/= Social Democracy (Sweden, Denmark).
|
Quote:
Originally Posted by Procrastinational
I don't think one would be incorrect in saying the Scandinavian countries were properly socialist in the past. But after major reforms in the 90's (following a severe recession), they all follow the principles of free market socialism.
Some aspects could be considered very capitalistic. Capital gains are taxed at a much lower rate than regular income there. They must have decided that the gains in economic efficiency from that would outweigh the reduction in equality.
IMO, if the goal is to maximize equality but not at the expense of prosperity, the Scandinavians have found a pretty solid compromise.
|
Yeah I think sometimes people confuse socialism with communism. Socialism is mostly a style of government rather than a type of economy. Communism is mostly a type of economy rather than a style of government.
Socialism as a form of government is strongly supportive of the social safety net, and doing more things as "the public" rather than having most things under the domain of private individuals or business. There is some overlap in the sense that with socialism there are usually going to be more publicly owned corporations whereas in non-socialist countries this isn't the case. More public schools and hospitals rather than private for profit, sometimes things like railroads, airlines, or utilities are publicly owned (what we refer to as crown corporations in Canada) but most of the economy is still capitalist.
With communism, the economy is what's referred to as "command style" in which the government (directly or indirectly through government owned corporations) determines what products and services are needed, how they should be distributed etc. rather than this being determined mostly by private companies using supply and demand. The government can be a single dictator, a single party with a complex command chain, or a democracy. I don't believe we've seen any real world examples of a communist democracy, but neither have we really seen any of totally free market capitalism as there has always been some level of regulation and public ownership.
The important thing to note is that very few people in Canada support the communist model, but many support some degree of the socialist model. The socialist model is not at odds with and cannot be contrasted against capitalism, as a socialist government and a capitalist economy are normally paired.