organization in which all wealth, including both the instruments of
production and consumers' goods, is owned by the community. Socialism,
on the other hand, proposes that the state own and operate only the
instruments of production, leaving food, clothing, and other
consumers' goods to be owned and enjoyed by individuals.

Socialism is often thought of in connection with the doctrine of
anarchy. Anarchism and socialism are alike in that both object to one
man having authority over another. Anarchism agrees with socialism
that capitalism is bad because it gives the employer power over the
laborer. But at this point the two theories begin sharply to diverge.
Socialism desires to abolish private property and to concentrate all
authority in the hands of the state. The anarchist maintains that this
is simply a transference of authority, and declares that authority in
any form is an evil. Thus where socialism seeks to enlarge the powers
of the state, anarchism objects to the existence of any governmental
authority whatsoever.

In addition to communism and anarchism, there are a number of
interesting theories that are more or less closely associated with the
socialist movement. These will not be discussed here, for two reasons:
first, an adequate treatment of them would permit the problem of
industrial reform to take up a disproportionate share of our time;
second, many of these theories, while interesting, are relatively
unimportant, from the standpoint of American democracy at least. We
may, therefore, confine ourselves to socialism proper, as defined in
Section 122.

124. KARL MARX AND HIS INFLUENCE.--The germ of socialism can be traced
back as far as Plato, but the modern movement takes its main impetus