The Difference Between Social Democracy and Democratic Socialism

Ever since the 2016 Elections, the term democratic socialism has been popularized in American political culture. Politicians like Bernie Sanders and Alexandria Ocasio-Cortez have been influential in popularizing the term, but are they even democratic socialists? No, though the answer is complicated. Bernie Sanders and AOC might actually be democratic socialists themselves, but the policies they advocate for are not. Policies like Medicare For All and Tuition Free College are pretty run of the mill social democratic policies. Although a hypothetical democratic socialist country would have these policies as well, they do not necessarily make a country (democratic) socialist. Let me explain the difference between these two ideologies.

Social democracy is a political and economic system where the means of production are mostly privately owned, with a strong social safety net. It calls for high taxes, especially on the rich, to fund rigid social programs. In a social democracy, the government can and does own and control some industries, like education, oil, and healthcare. Social democracy is compatible with a strong liberal democracy. Social democracies tend to have very high union rates, with sectoral bargaining.

Democratic socialism is a political and economic system/ philosophy that emphasizes support for democracy, including workplace democracy and economic democracy. Most democratic socialists argue for some sort of market socialism/ decentralized economy, rejecting soviet style socialism as authoritarian. They also support a strong social safety net as well as programs like Medicare for All. Democratic socialists argue that private ownership (capitalism) is inherently bad, and any attempt to control capital will always fail. Although most democratic socialists seek a gradual transition to socialism, democratic socialism can support revolutionary or reformist politics to establish (democratic) socialism.

While these ideologies are similar and often confused with each other, the most staunch difference is in the way they view capital. Social democrats seek to reform capitalism by establishing government and worker control over some industries while still enabling capitalism to thrive. Democratic socialists see capitalism as the root of the issue and seek to establish a democracy where the rights and welfare of the public are prioritized and workers have some form of control over the means of production.