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Social Democracy

Also called: Social democrat politics · Nordic model · Welfare state politics

Social democracy keeps a market economy and a democratic state, but uses taxes, strong unions and public services to cut inequality and protect people from hardship.

Social Democracy on 12 axes-100 to +100
ECONOMYSTATESOCIETYWORLDOwnershipMarketsWelfareAuthoritySecurityStructureMoralityReligionTechnologyCultureTradeForeign
Where it stands

Social Democracy, axis by axis

  1. PublicPrivate
  2. PlannedFree
  3. SharedSelf-reliant
  4. DemocraticStrong leader
  5. LibertyOrder
  6. LocalCentral
  7. ProgressiveTraditional
  8. SecularReligious
  9. EmbraceCaution
  10. MulticulturalNational identity
  11. GlobalProtected

    Most social democrats welcome open trade, though a good number ask that it come with labor and environmental rules.

  12. CooperationStrength

What is Social Democracy?

Social democracy is a political tradition that wants to make capitalism fairer without replacing it. Its supporters accept elections, private firms and markets, and they work through parliaments rather than revolution. What sets them apart is how much they ask of government. They want high-quality public schooling and health care, pensions, unemployment benefits and strong labor rights, paid for by progressive taxes. The aim is to give everyone security and a fair chance, whatever their background. Social democrats see freedom as needing a base of material security, since a person who fears poverty is not free. The idea is closely tied to Northern Europe, though it has shaped politics around the world.

Core beliefs

  • Capitalism should be tamed through regulation, taxes and strong unions.
  • Everyone deserves access to health care, education, housing and a decent income in old age.
  • Democracy and gradual reform are the right way to change society.
  • Inequality that is too large harms trust, health and opportunity.
  • Workers should have a voice, through unions and bargaining at work and in the economy.
  • Public action can be a tool of freedom, not just a limit on it.

History

Social democracy began as a branch of Marxism. The German party founded in 1875 grew into the largest socialist party in Europe. The split came over method. In Evolutionary Socialism (1899), Eduard Bernstein argued that capitalism was not collapsing as Marx had said, and that socialists should aim for steady reform through the vote. Many parties in the Second International followed this line, while others turned toward revolution after 1917. Hjalmar Branting led the Swedish party into government in the 1920s, and Per Albin Hansson spoke of the nation as a 'people's home' in 1928. After 1945 the British Labour government under Clement Attlee created the National Health Service and nationalized key industries. In 1959 the German Social Democrats dropped Marxism in the Bad Godesberg program. Anthony Crosland's The Future of Socialism (1956) argued for equality through growth and welfare, not common ownership.

Variants

The classical post-war model combined a mixed economy with big welfare spending. The Nordic version adds high union membership and strong public services. The 'Third Way' of the 1990s accepted more market reform and tried to link social goals with a looser economy. Democratic socialists want to go further and shift ownership of major industry into public hands, which is why the two terms are sometimes confused.

Criticisms

Free-market economists argue that high taxes and generous benefits lower work and investment, and may breed dependency. Conservatives add that big states grow bureaucratic and less free. Critics on the left say social democrats gave up on socialism and now only manage capitalism. Sweden's property and banking crash of the early 1990s led to cuts and reform, and Britain's economy struggled in the 1970s, which weakened the case for the post-war model. Supporters point to the Nordic countries, which have high living standards, low poverty and strong economies alongside large welfare states.

In practice

Social democratic parties have governed many European countries over the past century, and their policies of universal health care, pensions and labor protection are now widely accepted across politics. On the 12 axes the ideology scores strongly toward Shared on Welfare and Democratic on Authority, and moderately toward Planned on Markets, but it keeps a mixed economy rather than a fully public one.

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Social Democracy: questions

Is social democracy left or right?

It is on the center-left. It supports markets and private business but wants more taxes and public services than the center or right. It is not the same as communism.

Social democracy vs democratic socialism: what is the difference?

Social democrats aim to reform capitalism with welfare, regulation and taxes. Democratic socialists want to move beyond capitalism by placing major industries under public or worker ownership. Both use elections, and in practice the two overlap a great deal.

What do social democrats believe about taxes?

They believe taxes should be progressive, with higher earners and companies paying more, to fund public services and reduce inequality. They see tax as the price of shared security. Critics say high rates slow growth.

Further reading