What People get Wrong about Socialism & Communism

In today’s political climate there is much to be discussed in regards to socialism and income inequality. Yet, there is still a tone of misleading information being quickly consumed and disseminated through online social media. This treatment makes it hard to avoid political bias and unfair assumptions about socialism given its modern triumphs. So, while there’s no shortage of political discussions being hashed out online, it’s surprising to me that ‘socialism & communism‘ are still tossed around as pejorative terms that’s misunderstood. I’ve started to lose confidence when hearing others debate on issues surrounding socialist agendas (i.e. welfare, sustainability, education, government subsidies, healthcare, and social services, etc.), which are almost always reductive. I think the problem that surrounds modern political discussions is an eco chamber of ideas that cause both sides to speak past one another. To remain unbiased I will avoid advocating for socialism here. The purpose of this thesis is to address some of the common misconceptions about socialism from its historical to its modern implementation.

“The revolution will be complete when the language is perfect”. — George Orwell

(1) No Examples of Historical Communism — (Objection) Political philosophers will often point out that there are no modern historical examples of communism (i.e. a stateless society where all private property has been abolished and the means of production are controlled by the laborers and corporate oligarchy.) But this is true only for (Marxist) communism which to be fair could be argued for as the genuine article. Again, there has never been a Marxist communist nation-state. There are some individual groups that identify as Marxist, and may belong to certain communes who practice these ideals. But ignoring some unintelligible conversation about anarchist-communist groups, to date there have been no modern examples of a Marxist communist nation-state.

(2) Given (1) this is where most of the disagreement remains between the two camps of communism. Communism can be split into two doctrines of decentralized & centralized authorities — You can point to modern countries that could be considered examples of communist nations (i.e. N. Korea, China, Cuba, Vietnam, and Laos, etc.) but these are actually considered centralized versions of communism – where the production & wealth are completely or partially controlled by a political party. With this version of communism there is some obvious overlap with state-capitalism and totalitarianism. Again, in communist (Marxism) it is completely decentralized where the economic planning is controlled by the corporate oligarchy and labor unions. This is in stark difference to (Stalinist-Maoist) communism in which economic planning would be completely controlled by a centralized governing authority. The often misquoted Marxist idea of the ‘concentration of capital’ had nothing to do with political parties but rather an end-game theory in which the market would be controlled through corporate monopolies. Yes, while many modern nations are considered communist they are still a far-cry from the same communist system that philosophers Karl Marx & Friedrich Engels had envisioned.

(3) China, an Example of a Communist Nation State? — (Objection) The most recent comments by Chinese President Xi Jinping would tout China as Marxist leaning but take that with a grain of salt. China is a mixed bag of a neo-liberal socialist market economy (SME) with a state-capitalist system (i.e. an economy in which there are state-owned market enterprises and are in-part controlled by a centralized government.) The neo-libertarian strategies of privatization also help China make sweeping market reforms and participate in globalization (Zhang, Ong 2008). China is also heavily technocratic with 8 out of 9 of its top leadership having a scientific or engineering background.

(4) Uneducated Leadership (FACT) — There is a long history of the failures of centralized socialism and military regimes. These military regime changes, lead by communist/socialist political ideologies, were likely domed to fail because the leadership roles were filled by people without a proper educational background. You could list all of the historic leaders from former communist/socialist regimes and nearly all of them received either a minimal education or dropped out of school completely. Both Joseph Stalin and Adolf Hitler dropped out of primary school at an early age. From the eastern communist leaders Ho Chi Minh of Vietnam never finished his secondary education. The founder of N. Korea (Kim il-Sung) dropped out of middle-school. Mao Zedong of China received only a basic secondary education at Hunan First Normal School, later founded as a college and then University in 2000 and 2008, respectively. Venezuela’s current president (Nicolas Maduro), records show he never graduated high-school. The only historic communist/socialist leaders with a basic college education were Fidel Castro and Vladimir Lenin, and if we’re honest these leaders didn’t fair so badly. But they still would never go on to pursue any higher degree of learning. As a technocrat, I recognize my bias towards higher-educational leadership. I won’t say having a higher-education is absolutely ‘necessary’. But the social and political failures of these communist regimes given their lack of uneducated leadership is a valid criticism.

(5) Crippled by Capitalist Sanctions — (Given 4) The historical economic failures of socialism are without a doubt the cause of harsh economic sanctions imposed by capitalist nations. Economic sanctions are a political tactic to pressure nations using pecuniary penalties. A famous example is the (1960) Cuban trade embargo imposed by the United States. Over six decades of sanctions crippled the nations economy by banning trade, travel, and foreign investment. To be clear this isn’t a defense of Fidel Castro who was a tyrannical leader that jailed and tortured to death his political opponents. The same can be said of Nicolas Maduro reign as president of Venezuela. But as with Iran and N. Korea, history has shown economic sanctions rarely work nor do they change the behavior of its ruling government (Haas, 1998). History has shown that both opposing countries would benefit from an easing of sanctions. In 2000, the U.S. Congress approved a moderate bill that lifted trade sanctions in Cuba. This act alone saw an annual increase of agricultural imports from 0 to 380 million (Griswald, 2005).

(6) Socialism Equates to Fascism & Communism — (Objection) While communism is an extreme form of socialism, socialism itself does not equate to communism. This is a slippery slope. As far as addressing the historical fascism of socialism. We need to first clarify that these historic military regimes were using communism as a propaganda tool towards political-gains and self-interest. But the difference between today’s form of socialism is that the old was more radically idealistic while the newest versions are more reformist. Today’s socialism, like democratic socialism and social democrats, would not be considered fascist. The key difference here is that each promote policy decisions through a democratic platform choosing instead to focus on social and market reform. These democratic systems have worked for many countries already. Consider monetary policies like fiscal-federalism, currently used in the United States, as proof of concept.

(7) Democratic Socialist vs Socialist Democrats — Modern socialism is generally considered to be discussed in the context of Democratic Socialism – democratic socialism favors a ‘socialist economy‘ working alongside a ‘capitalist economy‘ with the government having some control over the means of production. But its often called democratic to separate it from other centralized socialist models that were totalitarian such as the Stalinist/Leninist model. And then there are Socialist Democrats – who would favor welfare policies that focuses more on social inequality and inequity.

(8) Millions Perish Under Communism Capitalism — (FACT) It’s a common misnomer to attribute the millions of deaths to communist regimes. Fascist regimes have used socialism as a political propaganda [tool] that caused the deaths of untold millions. But this argument is clearly reductive. It ignores the important principles of socialist theories that historical totalitarian governments essentially ignored. But if we want to talk numbers then it could be argued that ‘capitalism kills more.’ Early European colonialism in the Americas killed at least 53 million people. Leopold II of Belgium exploited the surplus of rubber from the European controlled Belgium Congo State, which was responsible for killing at least 8-10 million of its inhabitants. Colonialism in India during British Imperialism brought about 27 famines that killed nearly 60 million [Davis 9]. Although, there is still not enough sufficient data it is estimated that around 14 million (European & Africans) perished during the 400 years of transatlantic slavery. These numbers do not reflect the ongoing deaths caused by poverty each year. Canadian researches Gernot Kohler and Norman Alcock published a paper titled “An Empirical Table of Structural Violence” it found that ‘18,000,000people die each year due to systemic poverty [61][62]. These numbers also do not reflect the untold casualties that profiting from warfare has caused with the military industrial complex (MIC).

(9) Socialism Opposes Capitalism? — (Objection) The founder of modern socialist theory Karl Marx was, once again, not anti-capitalist. Marx was the one who first developed the concept of ‘surplus value‘ which is a core principle of capitalism. Most modern socialist & communist theories work in conjunction with a capitalist system. We already spoke about how China is a socialist market economy (SME) with capitalist leanings. There are other great examples of socialism & capitalism working in conjunction, such as in mixed-economies. North America & the European Union are modeled after this system. Scandinavian countries have a strong welfare system. The presumption that socialism or communism is the opposite of capitalism likely stems from historical examples of (Stalinist/Maoist) regimes. Which makes the social stigma that socialist systems are antithetical to a capitalist system grossly misleading. The original Marxist theory was never against capitalism. The core principle of Marxism favors a free-market capitalist economy controlled by its workers.

(10) The Socialist Regime of Joseph Stalin? — (Objection) “Stalinism is hard to define because Joseph Stalin was not a man of principle. He was no doubt a ruthless communist dictator but he often acted inconsistent with his own ideals. A basic assessment of the Stalinist regime will show a totalitarian state with a cult of personality. Stalinism, as a socialist system, has been disputed by several prominent Russian political writers and philosophers. Leon Trotsky, founder of Trotskyism, described Stalinism as neither socialist nor capitalist. Trotsky described Stalinist policies as a form of ‘bureaucratic collectivism’. Unfortunately, he was not able to develop this theory further as Stalin had him assassinated in Mexico City, Mexico in 1940. Another political writer and follower of Trotskyism, Tony Cliff described Stalinism as state capitalism or bureaucratic state-capitalism.

(11) The Nordic Model NOT Socialist? — (Objection) There have been recent articles that erroneously dismiss the Nordic model as an example of socialism. These opinion pieces are often cited by conservative detractors who lambaste the Nordic model by unfairly contrasting it with the classical Marxist definition of socialism (i.e. a free-market economy with less/no government influence). OK, let’s define ‘social democracy vs democratic socialism‘, once again! Remember, that there are many forms of socialism that affect either the economy and its social reforms. This is a prime example of the ‘catch-all’ terminology that confuses people. Although the Nordic region is mostly a free-market economy the Nordic model would still be considered a social-democracy – because of its democratic implementation of socialist policies that have created a strong welfare state.

(12) Socialized Healthcare — The term “socialized healthcare” is used pejoratively in the United States given its negative connotation with political socialism. The people who use this term are mislead, and this is very deliberate. Socialized healthcare has been practiced in the United States for hundreds of years. The Department of Veterans Affairs (VA) has a federal socialized healthcare system that’s history goes as far back as 1636, when Plymouth colony passed a law to aid wounded veterans during its war with the native Pequot Indians. More benefits for veterans, including free-housing, were expanded upon during the mid 19th century. It wasn’t until 1930 when former president J. Edgar Hoover consolidated these programs into one federal agency (Veterans Affairs). Other popular socialized healthcare programs, like Medicaid and Medicare, have been effectuated for decades giving millions of senior citizens access to free healthcare and medicine.

(13) The Zero-sum & Lump of Labor Fallacy — Socialism and communism is often unfairly criticized by abusing these fallacies. To use an example of how the zero-sum fallacy works, is say I have a piece of pie and I wanted to share it equally with 3 other people then I would have to divide the pie by 1/4. While this simple proof bares true mathematically, it’s a negligible example of how modern economies work. This may have been true in the mercantilist era of trade systems. After all, gold and silver were the popular mediums of exchange during that era; and that was a limited resource. But after the industrial revolution modern economies now generate wealth through surplus value. Systems of money called currency became the modern medium of exchange. The point is to say that economies have evolved past the idea of a 0-fixed sum. You could say that this argument is a Malthusian fallacy. In the manga Plunderer the main protagonist Licht Bach abuses this fallacy. He falsely believes that by thinning out the population humanity can maintain its resources. ‘The Lump of Labor Fallacy’ is another type of zero-sum fallacy. This fallacy would instead assert that there is a fixed amount of labor to employ. This fallacy is often abused by anti-immigration groups like FAIR, who propagate this false narrative that an increase in the population of undocumented immigrants would have a negative affect on competition and labor. Again, this is not how modern economies work. For example China’s population is 4.35x the United States and the largest economy in terms of PPP. The underlining assumption here is that any re-invigoration of socialist systems would lead to massive unemployment and a scarcity in resources which is simply not true.

Beyond the basic definitions I’ve provided it can be very difficult to define socialism. It could refer broadly to an ideology or related to its influence on a specific policy. I’ve told you just two versions of communism but there are even more versions of socialism (i.e. Mutualism, Democratic Socialism, Socialist Democracy, Revolutionary Socialism, Eco-socialism, post-capitalism, Market/Non-market Socialism, Autonomism, Anarcho-collectivism, etc.) I wouldn’t encourage you to try to understand what all of these different theories mean. However, it does help to at least familiarize yourself with some of these terms to gain more of an insight. Hopefully, this can reduce the prevalent reductionist thinking that has hollowed most of these online political discussions. The designations that make socialism differ can at first seem like you’re splitting hairs. But we must remember that the original Marxist definition is not a practical way of defining socialism in any historical or modern context.


Baijie, A. (2018). Chinese leader honors enduring legacy of Marx. Retrieved from http://www.chinadailyasia.com/articles/201/31/63/1525501817280.html

Haas R.N. (1998). Economic Sanctions: Too Much of a Bad Thing Retrieved from https://www.google.com/amp/s/www.brookings.edu/research/economic-sanctions-too-much-of-a-bad-thing/%3famp

Griswold, D. (2005). Four Decades of Failure: The U.S. Embargo against Cuba (https://www.cato.org/speeches/four-decades-failure-us-embargo-against-cuba

Kautsky, J.H. (1997). Centralization in the Marxist and in the Leninist tradition. Retrieved from http://www.sciencedirect.com/science/article/abs/pii/S0967067X97000159

Davis, M. (2001). Late Victorian Holocausts: El Niño Famines and the Making of the Third World. London: Verso. p. 9.

Cliff, T. (1955/2020). State Capitalism in Russia. Haymarket Books.

Boyce, P. (2019). The Nordic Model Isn’t True Socialism. Retrieved from libertarianinstitute.org/articles/the-nordic-model-isnt-true-socialism/

Kagan, J. (2018). Lump of Labor Fallacy. Retrieved from http://www.investopedia.com/terms/l/lump-of-labour-fallacy.asp

“Protecting the jobs and wages of American workers is a clear objective of U.S. immigration policy.” (2016). Immigration, Labor Displacement
and the American Worker. Retrieved from http://www.fairus.org/issue/workforce-economy/immigration-labor-displacement-and-american-worker

2 thoughts on “What People get Wrong about Socialism & Communism

  1. An interesting read. So many misunderstand, or exploit people’s misconception of Socialism.
    Many times I find myself having to respond to people that eg Venezuela – oil based economy, pegged to USD, ‘interfered with’ by the US to destabilise it’s regime, cannot be put up as example of failed socialism… (unfortunately the reply I usually get isn’t printable)
    …. This blog will come in handy to pass on in such instances!

    1. I’m glad you found my page! Yes, many people are still misinformed about socialism. The United States suffers under a plutocratic government, which makes it impossible to reform capitalism to make it sustainable. I’m afraid if this kind of crony capitalism continues, then the gap between income inequality will grow steeper; until the economy finally collapses.

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