Socialism calls for the economy to be managed collectively, for the sake of the well-being of all of society's members; rather than its driving force being the decision-making of private actors pursuing private profit (what its proponents, not always coherently, call "the market").
By contrast, social democracy accepts the private, capitalist economy as its baseline, but simply takes the position that in real life markets require rules to permit them to function, and that optimal economic outcomes may come from channeling market forces; that there may be areas where markets simply do less well than alternative modes of organization, for example, in cases of natural monopoly; and that optimal social outcomes tend to require remedial action to protect the public against the harsher consequences of the market.
Thus one has regulations to protect the worker, the consumer, the natural environment; one has subsidy of various kinds; one has public services, going beyond the traditional minimum of armed forces, law enforcement, a postal service, infrastructure, to the realms of education and health and perhaps public ownership of enterprises like utilities or transport systems; one has a social safety net. Accordingly one also sees a fairly large state, supported by relatively high taxes. Still, the economy remains largely and usually private and proft-driven.
There is a world of difference between socialism as described here, and social democracy as described here. The really hardline anti-Communist may claim not to understand that difference, or make slippery slope arguments about any impurity of a capitalist society putting it on the train straight to Stalintown or somesuch. Yet, the fact remains that, whatever one makes of such arguments, they are two different social models, in their principles and their workings.
By and large what we in the United States are hearing described as "socialism" is just social democracy. Thus does it even go with Sanders' call for the expansion of the publicly owned electric grid on the basis of enlarged investment in renewable power in his vision of a Green New Deal. The end result would be that the American government would be the principal provider of electricity to the consumer. Yet, those who know something of the history of social democracy will remember that other states went rather further in this direction before--even post-war Britain, which far from building up a government-owned electric grid, did not hesitate to nationalize the existing one, along with the coal, gas and oil sectors (which remained government-owned until the privatizations of the Thatcher era).
Simply put, Sanders' plan in this area, and others, looks much more radical than it is because of how modest the social democratic element in the U.S. was even at its peak (the extent of regulation, the social safety net, public ownership never coming close to what was seen even in safely capitalist Europe), and because of how far to the right the Democratic Party has marched since the 1970s, especially under the Presidencies of Bill Clinton and Barack Obama, a march that the party's neoliberal elite (whose stance is epitomized by Nancy "Paygo" Pelosi) are utterly intent on continuing. The result has been to pit that elite against the party's more left-leaning base, a conflict which cost the party dearly in 2016. Should the elite get their way again, it seems likely the party will pay the price yet again in 2020.
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