Socialism defined

Socialism. An economic system in which the production and distribution of goods are controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity.

There are many varieties of socialism. Some socialists tolerate capitalism, as long as the government maintains the dominant influence over the economy; others insist on an abolition of private enterprise. All communists are socialists, but not all socialists are communists.

Source: Dictionary.com. The American Heritage® New Dictionary of Cultural Literacy, Third Edition. Houghton Mifflin Company, 2005.