“Socialism” is a somewhat open-ended term. Under capitalism, firms are in the hands of neither workers nor society as a whole, but rather a separate class of owners. These capitalists decide what gets produced, how it’s produced, and how to distribute profits. Socialists of all flavors want to change that. Michael Walzer’s slogan captures this impulse well — “What touches all should be decided by all.”

But what, in practice, does that mean?

It’s easy to paint a picture of socialism that’s both attractive and extremely vague. Under capitalism, key economic decisions are made by a handful of owners. And many economic outcomes don’t even reflect the preferences of any individual capitalist. Instead, they stem from the chaotic imperatives of market competition.