Socialism is an economic and political system based on public ownership of the means of production. All production and distribution decisions are made by a central planner or government body.

In practice, industries and resources are owned by the government. The value employees and businesses create are confiscated and distributed to those who need it rather than those who create it. Economic freedom is non-existent as decisions are made by the elite rather than determined by millions of free and voluntary citizens acting as a market.