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Investments glossary

Socialism


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— Benjamin Franklin

Socialism is a populist economic and political system based on public ownership (also known as collective or common ownership) of the means of production. Those means include the machinery, tools, and factories used to produce goods that aim to directly satisfy human needs. Communism and socialism are umbrella terms referring to two left-wing schools of economic thought; both oppose capitalism, but socialism predates the Communist Manifesto, an 1848 pamphlet by Karl Marx and Friedrich Engels, by a few decades.

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